How to Double Your Money in the Stock Market: Meta It
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, we’re talking about:
How to Double Your Money in the Stock Market: Meta It
Now you might be thinking:
What the heck is with that title?
META isn’t a verb. Has this guy lost it?
Answer: yes.
But I make the rules around here, so stuff yer gullet full of Schmooze, quit yapping.
Also, long-time Schmoozers might recognize the title as an homage to last year’s fine wine of “How to Double Your Money in the Stock Market: Google it.”
Not to toot my own horn…
But the price of Google doubled since then.
Alternative title options I was kicking around were:
This Year’s Google: Meta
But that is kinda boring.
Or
Enter the Metaverse
But no one wants to do that.
Or
Where’s your jet pack, Zuckerberg?
But you probably would have scrolled past, and this is the clickbait business.
All this is to say, the similarities with the stock price of META right now and GOOG around this time last year are pretty striking.
With Google, you had a company that was:
1. Growing rapidly
2. Projected to continue growing rapidly
(this screenshot is from March of 2025)
3. Trading at a dirt-cheap valuation
With Meta, you have a company that is:
1. Growing rapidly
2. Projected to continue growing rapidly
3. Trading at a dirt-cheap valuation
Why so cheap?
In both cases, it was nothing to do with the fundamentals of the company.
With Google, you had:
Spooky AI concerns
With Meta, you have:
Spooky AI concerns
You gotta spend money to make money, Lou.
With Google, you had:
Gloomy looming government regulation
With Meta, you have:
Gloomy looming government regulation
With Google, you had:
Mr. Market seemingly ignoring the user growth
With Meta, you have:
Mr. Market seemingly ignoring the user growth
Half the people on the planet as daily active users ain’t too bad for an advertising company.
With Google, I gave you:
A simple five-year projection of how the stock price could double
With Meta, I’ll give you:
A simple five-year projection of how the stock price could double
And what happened since then with Google?
Sentiment shifted.
Some government regulation got clearer. Some super investors started buying.
The fundamentals stayed the same.
Aaaaaaaaaaaaaaaaaaaand…
The stock price doubled.
What will happen with Meta?
Sentiment will shift.
In fact, we’re already seeing one big super investor get in on the party.
Bill Ackman outlines perfectly how much of a steal META is:
Check out his whole Investor Presentation here if you fancy.
You should never invest in something just because someone else did. I do agree with the logic, however. Besides, with this guy so high on AMZN, GOOG, UBER, and META, I think he is actually tailing me.
Also, this little nugget is hysterical:
He hasn’t beaten the market since the inception of the fund.
Feel free to skip the Pershing Square Holdings management fees and just read the Schmoozeletter for free.
So will the stock price double by this time next year?
Probably not. That would be sweet so I can write this article again next year with a different company, but a year is a very short time frame in investing.
Regardless, the formula remains the same:
Exceptional Company + Strong Fundamentals + Negative Sentiment = Buying Opportunity
Let me leave this here again for the next round:
Final Thought
Investing doesn’t need to be complicated. Buy exceptional companies at fair prices. Hold. Repeat.
