Commentary for week ending 10/23/2021

My commentary for this week will be relatively brief.  But I need to say something about Facebook (FB).  There have been a lot of comparisons to FB to being the “big tobacco” stock of 2021 because of the threat of legal actions.  Personally, I think that is fallacious as FB is a vital part of small business and I doubt that any legislation will stop it from collecting ad dollars.  I regard any weakness as a buying opportunity – not a reason to sell.  But let’s suppose that FB is like Altria ( née Phillip Morris).   Many years ago I bought 1,000 shares of Phillip Morris at about $18/share.  That 18,000 dollar investment netted me thousands of dollars thru growth, dividends and spin-offs.  Of course FB doesn’t pay a dividend but it makes it up in growth.  My point here is that hated stocks which fulfill a want like tobacco in the case of Altria or advertising in the case of FB, they often overcome adversity, thrive and grow. 


As for the market in general, note that is has recovered from the September lows.  I have said many times that market timing is a fool’s errand.  Even so-called professionals get wrong more times than they will admit.  So for a long-term investors, regular dollar cost averaging in index funds in a 401k and/or IRA is the obvious way to go.   Of course there is always the Miley Growth Fund and Miley Income fund for those who have already built up their base funds!


As for the growth fund, I would stay away from the Chinese stocks for now.  I think that Amazon (AMZN) currently represents a good buying opportunity.  It has been struggling lately, but I see getting back to growth by early next year.


On the income fund, no real changes, but as I mentioned consider taking profits if needed and maybe drop Western Union (WU) as I have it on my watch list for a sell.


Well, that is all for now.  Happy Investing!




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