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I Just Invested $160,000 In This Stock

Joseph CarlsonMarch 16, 202613m
Topics9
Common Investor Mistakes with Dips0:00Personal Investments in Meta Platforms0:33New York Times Article on Meta's AI Delay1:34Critique of New York Times Article2:32Market Reaction and Additional News6:02Meta's Valuation and Growth7:02Comparison to Tesla8:03Why Bullish on Meta Long-Term10:02Conclusion12:04
In a Nutshell

The investor deployed $160,000 into Meta Platforms (META) by aggressively buying the dip across multiple entries from $737 to $613 per share, despite a $16,000 paper loss, viewing recent 4-5% drops from a New York Times article on the "Avocado" AI model's two-month delay as overblown market overreactions. META trades at a cheap 21x forward P/E and 18x 2027 earnings with 20-25% expected revenue growth, dwarfing Tesla's $1.5T valuation despite Tesla's stalled growth, shrinking profits, and far worse 200x+ P/E amid similar delays. Long-term bullishness stems from META's ad-driven revenue tied to global GDP, healthy FCF despite CapEx, and undervaluation—every purchase will profit as short-term AI noise fades.

AI-Generated Notes

These notes were generated by AI and may contain inaccuracies.

As investors, we're told portfolios should represent the best companies in the stock market. Analyze companies carefully, create a portfolio of the best ones, and buy on dips when stock prices go down. Many investors don't follow this: they buy good companies initially but sell when they dip, due to explanations for every dip suggesting the company deserved it.

Meta Platforms is currently in a dip. Newer position, down $16,000, but continuing to buy repeatedly.

  • January 29th: Bought $45,000 at $737 per share.
  • February 2nd: Another $10,000 cheaper.
  • Next day: Another $10,000.
  • Stock dropped another $20: Bought $20,000 worth.
  • February 4th: $40,000 (big buy), then evening $10,000 at $672 per share.
  • February 6th: $10,000 at $657.
  • Three days later: $10,000.
  • February 11th: $8,000 at $669.
  • March 13th: $3,300 at $613, after plunge due to news article.

Total invested: $160,000 in Meta.

News article: New York Times breaking story on Meta delaying rollout of new AI model, codenamed Avocado. Caused 4% drop. Wall Street pricing in pessimism: Meta not up to task, can't create competitive AI, delaying plans, can't compete with Google, wasting hundreds of billions on CapEx.

Meta is third largest holding in portfolio (while stock is going down). If it goes up a little, could become largest position. Very confident on Meta.

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