Buying Facebook Amazon and Berkshire Hathaway

When I have the money I buy stocks in quality companies. It's not more complicated than that.

Yesterday afternoon I established small toe tester positions in FB, AMZN and BRK.B

I really needed to buy some quality US companies that have a wide moat and that I believe I can hold for the next 10 years and will continue to grow.

We all know the trouble Facebook has gotten into lately with security of user information. Does that mean this company is on the down trend to oblivion?

Why Buy Facebook Now?

I believe it's a buying opportunity. To buy FB now you have to be a believer in the long term ability of this company to make money and explode in value. It dropped to a low of $149 on the Cambridge Analytica breach then rose to back over $209 and I just bought some at $160 after falling back down again.

Privacy concerns are laughable when it comes to FB. How about all the personal info we volunteer up for free on a daily basis? This is no more dangerous than any company out there we interact with. I like the Instagram acquisition and once FB figures out how to collect even more revenue once Instagram turns into a selling machine for a lot of stuff, well BOOM! This will happen and why this for me is a 5,10 and 20 year story.

Everybody uses FB. All ages. My 88 year old father uses Facebook and all the millenials in between use this social media platform. We use it to talk to family and friends, join like minded groups, start our own group, sell our shit on a group and post videos.

Anybody telling you this is going to die anytime soon is just plain nuts. Don't listen to them in my opinion. FB is the dominant way we use the internet to connect with the human race. FB messenger will only grow in it's use and get more common for chatting with each other. 

Every year revenues and earnings just continue to grow. P/E of 24 and ROE of over 24%. This company just continues to spit out cash of $11B a year. Amazing stats and after the drop in price FB is still flashing the BUY signal and by all fundamental aspects it's cheap. Technically the stock has broken down under it's 200 and 50 DMA, but to me it looks like it is getting ready to rocket higher. Nobody knows anything but I'll take my chances here. Technology just keeps advancing for me not to be here.

Why Amazon?

It's just the go to place for all our cheap shit and books. I don't buy a book anywhere without checking out the price on Amazon. It's where we get all our bargains, don't we? We just bought a coffeemaker for $12 delivered. Can't beat it. They have taken over our whole mindset and for that matter the world. They continue to grow bigger and more influential every day.

Yes it has a monster P/E ratio of 150 and needs to keep hitting earnings and revenue numbers in the short term for the street to keep buying that value number. Do all high priced stocks have to drop lower? Can they keep going higher? Nobody knows shit. They have been wrong for a very long time. I've read about lots of investors on discussion shorting AMZN since it got above $1000.00

They have continued to short it all the way up and I'm guessing will do so until they are dead ass broke.

They generate $11B a year in free cash flow. EPS growth of 1100% YOY. Revenue growth of 38% YOY. ROE of 21%.

In 1994 Amazon launched and Whole Foods was already a $220M company. What happened? Amazon eventually went on to buy Whole Foods. Wouldn't you think it would have been the other way around? That is the sheer raw purchasing power Amazon has in the marketplace. This is a huge company. HUGE! They will continue to eat companies gong forward. Innovation always wins so pay attention to what these monster companies are doing.

Prime plus and paid subscribers = huge revenue stream and growing. Will they buy a pot company? Will they find a way to penetrate the pharma industry? So many possibilities and opportunity for entrepreneurs and investors. I'm buying Amazon for the next 10 years. I am looking at it's macro impact on capitalism and NOT short term warnings from money managers warning of a global meltdown and getting out of high p/e stocks. I'm not betting against Bezos and what he can do.

Amazon gets close to you, the closest of any company to it's consumers. The closest to the shopper always wins. Don't you think? I for one am investing with Bezos so I bought a few shares and will buy more when I can. Think Alexa, Fire TV, Movie making, Kindle, are these going away or are they the future? It's just unbelievable what this company has done and continues to do. Their runaway is clear with nothing stopping them. The stack of products is deep!

Berkshire 'B' Shares

Why buy Berkshire? Warren Buffett enough said. I just wanted to invest in the greatest investor of our generation. It took awhile but I finally pulled the trigger. It does mimic the whole US market so I figured why not. I like the stable of companies he holds so it's just a small investment in his massive holding company. Another, at least 10 year hold.

P/E of 11, ROE 14% and revenue and earnings growth all rising year after year. Buffett knows how to invest and grow money. This is a sleep at night stock and most suitable for retirement accounts where I tucked it away.

In Sum

I ended up selling 55 units of ETF XAW which I am slowly winding down so I could make these 3 buys. I just want to be exposed to the US and Canadian market. The rest of the world (besides Trump) is too unstable for me so I'm slowly getting out. US companies will weather any storm and the US dollar is the currency everyone seems to run to.

 NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT

Looking for Saving Ideas So You Can Invest? 

If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

Do you own any of these 3 great American growth companies?