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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Alphabet And Amazon Bring Back Ghosts Of 1,000s Past

FYI: With Alphabet (GOOGL) and Amazon (AMZN) racing tick for tick towards the $1,000/share level but coming up just shy today, we just can’t help but be reminded of another run towards the 1,000 milestone 51 years ago. For the sake of the two stocks and the overall market, though, we hope that this time around, the $1,000 level isn’t nearly as tough a nut to crack. The battle for 1,000 we are talking about from 51 years ago was the Dow Jones Industrial Average. Back in 1966, after a rally of nearly 20% off of its June 1965 lows, the DJIA was knocking on the door of 1,000 but came up just shy of the mark, closing at 995.15 on 2/9/66. While the DJIA didn’t cross 1,000 on February 9th, we can’t help but think that most people felt it was just a matter of time before the 1,000 level was breached.


  • I acknowledge I'm not good enough to recognize the merits of investing in the FANG stocks. Especially the A.

    I will just live a conservative lifestyle since I am not making that much on my investments. I'm sure some of my concentrated funds might own 1 or 2 of these stocks aplenty.
  • @VF
    Yes, my largest equity MF, CFIMX, owns a large slug of AMZN and GOOG! ...and Davis were once "value" investors!
  • I'd like to see GOOGL and AMZN do 10:1 splits, making their shares go down to roughly $100. AAPL did a 7:1 split a few years back as its share price was $700+. I own these stocks via funds, FCNTX has done well owning these names, but I'm worried that the law of large numbers may prevent GOOGL and AMZN from soaring to even greater heights going forward.
  • @VF
    Yes, my largest equity MF, CFIMX, owns a large slug of AMZN and GOOG! ...and Davis were once "value" investors!

    I made comment on Weitz on another thread, likening him to Miller. Sorry, but I think Davis and Co might fit the same mould. Managers, you should stick with your style. People should decide if they want to invest and stay invested in you. Your style needs to stick. Hussman sucks but he is consistent.

    It is very important for me for my managers to have courage of their convictions. Changing definition of "value" to market your fund is sheer hypocrisy. Amazon has a profit margin of less than 2%. Biggest hypocrite, M* has fair value estimate of $1050. WTF? Compare with Walmart's numbers. COBYX owns Walmart. Another consistent fund PVFIX. So are CGMFX and FAIRX. They are investing exactly how they say they will and what I expect.

    CFIMX has no business owning Amazon. FCNTX is supposed to be contrarian. HTF is Amazon contrarian? I don't get why people don't just buy QQQ if they want to play high flying growth stocks. Or buy Profunds Leveraged fund.
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