Obviously if you own an index fund you don't have to make this decision, more power to you. For those preferring a more concentrated portfolio style, I think this is an interesting question - because these are all great companies, but naturally one must be better than the others.
If you had to pick just one of the mega-caps, which do you buy today?
My personal thoughts:
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Facebook. I see potential competition to their network, but the balance sheet is a fortress and valuation has been pushed down a bit due to general public hatred. A contrarian pick. (B)
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Apple. In my opinion the valuation of this has run away farther ahead of its earnings relative to the others, making it the least attractive of the bunch for me. (C-)
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Amazon. Doing amazing things, looking at the last several quarters their earnings seem to be accelerating - however the p/e is higher than all the rest. (A-)
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Microsoft. The sleeper choice, solid valuation in addition to growth. Not flashy but a money printer. (A)
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Google. My perception is that they're slipping - taking lots of high risk/high payoff bets that don't appear to be paying off yet. Feels potentially contrarian but I'm not wildly excited. (C)?
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Bonus: Mastercard/Visa. Secular trend away from cash makes these seem like long term great picks, in spite of fin-tech disruptors. Not cheap valuations though. I favor MA over V for efficient use of capital. (B+)
Just my opinions of course. Your thoughts?
Submitted January 19, 2021 at 12:00AM by PrefersDigg https://ift.tt/35T7KMY
