The Strong (FAMGAM) get stronger
By Harry Kapoor
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20% of the increase in all US Stocks came from 6 companies- FANGAM 😮
☝️One excellent video to watch if you'd like to understand the power of 6 Tech Cos on the world and Covid19 impact on markets and FANGAM stocks.
Most markets worldwide have come back to pre-COVID levels and it could have been an excellent investment to pick most stocks at market lows, ofcourse looking backwards. But it's surprising how markets are not reflecting the Covid19 sentiment and real health of companies in many sectors like manufacturing, real estate, infrastructure, bad loans etc.
Even commodities like Copper are above pre-COVID levels and Oil is also almost catching up.
But key insight to dwell on is that the Strong get Stronger in these trying times. Like the FANGAM stocks are doing well, due to the following:
-High cashflow and low debt
-Huge user base
-Platform layer
-Big proprietary actionable data
-An average day in anyone's life is spent majorly on one of these companies' ecosystem applications (think your time spent on Google + FB/Insta/WA + Netflix + Microsoft docs + Amazon app/ AWS + Apple gadgets.)
Wow, don't these companies own us already?
Btw I love Aswath Damodaran and his musings on business and finance. Do watch his channel to learn about valuations, markets, finance and everything around that.