Let's have another look at $Alphabet(GOOG)$
Not sure if most know but Google actually diversified their own portfolio. No, they aren't just your search engine and YouTube.
Google own stakes in companies like $AST SpaceMobile, Inc.(ASTS)$ & $SpaceX(SPCX)$ and more. Now if you are a long term holder, great, kudos to you. Google is a solid long term pick. The last time $Goog dived largely in a single day was back when Q2 ER was released. Investors are worried due to negative FCF for the first time ever. Capex concern.
This is a valid concern. However, look at the larger picture, why is Google, a company swimming in cash, willing to spend an enormous sum on AI Infrastructure? Because $GOOG needs to stay competitive. Which, in my humble opinion, is a good investment.
Now let's look at $MSFT. They did the same exact play. Invested and disclosed that a large sum of money will be used on AI Infrastructure. MSFT then dropped big time. 500 level to 300 level. Again, It's MSFT, not a small cap stock. What did smart investors do? They bought more. All these while everyone panicked. This is one of the most straightforward reason why a handful of investors gain more than others. No, it isn't a bet, they see it as every dollar spent will make more than $2. That MSFT is 1 of the few companies that is able to spend such amount in return for more.
Now, we run back to Google. They're doing almost a completely same play. Look, regardless of how you view Google, we cannot deny that Google is one of the companies that owns great businesses. A solid one at that. Now that Goog have been dropping, Is it doomsday? No.
Who are the large caps that can invest such amounts and monetise on their capex? MSFT, GOOG, AMZN, now Meta is trying, and maybe Tesla. (Yes, Tesla is able to)
Zoom out, look further, hold, trim, sell OTM covered calls and look for entry zones while most panic.
Wealth transfer happens when we witness such events happening: Panic selling.
On a balance of probability, patience should reward you handsomely.
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