Gigantic stocks
Everything changes. There is always a cycle. That's why Mr. Marks wrote the book, Mastering the market cycles.
We see how these mighty GAFA stocks still keep expanding their market cap. But this cannot lasts forever, if you have an understanding of stock market histry.
When I started investing in 2013, Coca-cola, Philip Morris, and Exxon Mobil were mighty and gigantic companies and dividend investers believed that these companies will keep their dominant business strength going forward, until the end of capitalism. Jeremy Siegel reinforced that idea in his red book, The future for investors.
I still remember during that period, Google, Microsoft, Amazon, and facebook were considered overvalued. But those companies, no matter how they look expencive at that time, are now still keep justifying their high p/e racio by just keep showing their growth potential and their ability to pile up high margin profit at every quoters.
I might be fooled by story of high-tech bubble in late 90s. What we need to see is, always, growth potential of companies. The game changers.
Now, KO, PM and XOM are underperform and stocks of GAFA are doing extreamly well.
Then, what happens next. GAFA will hand over their dominant presence to other companies. But not sure who. Foods, soup, toys, automobile parts maker, or something might be able to get their turn.
What we need to prepare is exploreing possibilit of reducing GAFAM and add thoes not very exciting stocks.
I searched some food stocks which I have ignored while I was exciting GAFAM. Among them, Campbell has a good IR page with high quality presentation materials. I wathced a video of Invester's day that were recorded in a couple of weeks.
investor.campbellsoupcompany.com
