Pax Romana Capital

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Mark Zuckerberg, Warren Buffett, A Smidgen of Inflation, and Don’t Buy Coke If You Are Under 40

Okay, there is a lot to get to, so I will hit some stories I identified as important and under-talked about.

Mark Zuckerberg personally reviewed the Apple Vision Pro and compared it to his company’s Quest. Mark was not super positive about the product that is ten times better than his own, saying, “Before this, I expected that Quest would be the better value for most people because it’s really good and it’s like seven times less expensive,” he said, referencing Quest 3’s $500 starting price tag compared to $3,500 for the Vision Pro. “But after using it, I don’t just think Quest is the better value. I think Quest is the better product, period.” WOW, NO WAY, MARK YOU THINK YOUR PRODUCT IS BETTER THAN YOUR RIVAL’S PRODUCT???? Now, dear reader, I want you to remember that Mark Zuckerberg detests Apple. Apple cost Meta billions upon billions of dollars when they gave consumers the choice of whether they wanted Meta tracking them everywhere. Meta detests Apple, and Mark detests Apple. No person on the planet was taking what Mark said seriously, but I still thought it was hilarious.

Berkshire trimmed Apple. Apple makes up something like 48% of Berkshire Hathaway’s holdings, which is a lot. Many people have bought Apple because they were encouraged by Warren Buffett supporting Apple continuously, so it may worry you that Buffett has finally started selling. Do not be worried: Apple has simply gotten too large in the company’s portfolio. At a certain point, it almost violates a fiduciary responsibility to be so concentrated in one stock, and Berkshire barely sold a percent. Berkshire is absolutely still in Apple, and you should be as well.

This is barely worth talking about. Inflation was up, and the market pushed their expected rate cut date back a month or two. You should not fret. Ultimately, it is not that big of a deal if it is June, July, or August that The Fed cuts in. As long as The Fed cuts, and they will, we are golden. This economy is like a racing bronco right now. If we cut too soon, we have to go through all of this again. Have some patience; invest in stocks too strong to be broken by weak inflation.

While flipping/scrolling through the Wall Street Journal, I saw an article, “Coca-Cola Stock Has Gone Flat. Is It Time to Buy?” First, just because there is an opportunity to make a pun does not mean you have to do it. Second, you should not buy Coca-Cola stock if you are young and want to make money. Yes, we know the dividend yield is great. Yes, we know bonafide geniuses like Warren Buffett drool over Coca-Cola. Yes, we know it is a fixture. Coca-Cola, Apple, Microsoft, those are the classics. Coca-Cola IS MID, MA MA MA MID. The stock does not go up, it does not go down, it stays flat. I want you to guess how much the stock has been up or down over the past year. Take a second and genuinely guess.

The answer is that Coca-Cola stock is down THIRTY CENTS over the past year or down half a percent. I mean, come on, give me something…ANYTHING. It is not just that. Every stock goes through a rough period. As a long-time Disney holder, I get it, but the company is stale. People do not like soda like they used to. Every day is a new beverage. Every day, kids go to the doctor and are told if they drink soda, they will die. Coca-Cola will be under $80 in five years. It is at $60 now.

Coca-Cola is a relic, and yes, sadly the Wall Street Journal pun was correct: it is flat :(.