Name the best business you know that meets all of the following criteria:
1. Simple to understand (no AI, chips, biotech, banking, insurance, etc).
2. Requires little capital reinvestment
3. Consistently generates free cash flow
4. Strong balance sheet
5. Durable competitive advantage
6. Trading at a reasonable valuation
What company comes to mind first?
🌹
The last time $META traded at 11x P/OCF, the cash flows were in a decline
Now it is the complete opposite with cash flows accelerating
Year over year growth:
2025: +26%
2026: +29%
We’re donating Ray-Ban Meta glasses to every blind veteran across the United States, providing hands-free AI features and insight into the world.
https://t.co/1ZXj20Dz3W
Meta trades at 20.7x earnings.
The 10Y average is 26.9x.
If the market simply valued Meta at its historical average, the stock would be worth roughly $740.
$META
The market is treating Meta like growth is over.
Meanwhile:
- Global ad spend is approaching $1 trillion.
- Meta is guiding for +25% growth.
- New subscription revenues.
The stock trades at 21x earnings.
$META
Dana White: "I like killers. I've met Michael Jordan, Mike Tyson. All of them. And Mark Zuckerberg might be the biggest killer that I have ever met in my life."
BAT trades down after the release of the H1 Trading Update. Last -3% to £44.4
Our summary:
https://t.co/rOHF77fVrD
Group numbers are broadly in line with expectations, but heated tobacco (glo) continues to disappoint. Webcast starts in about 15 minutes
I just published my Investment Thesis on $AMNF on Substack. I invested 100% of my net worth in the company in 2021 for 3 simple reasons.
Read the full thesis here: https://t.co/TuYJ6EuxOg
One of the things I love about $META
is Mark Zuckerberg has SERIOUS skin in the game.
He owns ~13% of the company. Besides Elon, no other Mag 7 CEO has ownership anywhere near that level.
I think having this much at stake is what allows Zuck to bring a sort of startup mindset even at company maturity. He isn't content to be just good enough, he always wants to innovate and win, even if the market doesn't recognize it at first.
That's the kind of person I want running a company.