Since then, Charlie Bilello has written up deeper dives into a number of portfolio companies. Below are my thoughts from each of those posts.
If of interest, feel free to reach out to me or Charlie to learn more about the 8 to 80 Portfolio.
“Apple is now almost all about subscriptions. There are now one billion iPhone users and growing, but the stock won’t be valued on hardware growth anytime soon. This is a great piece on the state of Apple from the research team at Above Avalon that focuses almost completely on Apple research/coverage.
I do think that accessories and wearables like the watch and the airpods are underestimated in terms of the lockdown to the Apple ecosystem. The airpods have brought incredible joy and productivity to my day, opening up the world of podcasts and music and even phone calls.” – Howard Lindzon
“Amazon has been one of my 8 to 80 stocks from the beginning. Amazon has the brand and the products that people live with from the crib to their final homes. It is my proxy for the cloud, ecommerce and the digital economy.
At their size, Amazon is a planet, not just a company and a country. It moves where it likes. The government can’t stop it, but Jeff Bezos could, if he wanted, spin off AWS if he thought it would help the overall valuation of the combined businesses.
Amazon will never, ever, ever be cheap. As a planet, they will always get the benefit of the doubt from investors. There will be times when the mood of the market changes and Amazon does drop 20-50 percent. When it does, remember how they think about turning their costs into sources of revenue (see chart below) and you should be able to keep your cool and add into panics, not sell.” – Howard Lindzon
“Google has been the ugly duckling of FAANG. Microsoft, which is not in the FAANG gets more love. So does Tesla.
I have done 120 episodes of ‘Panic With Friends’ that talk about investing, markets and stocks and Google rarely gets mentioned.
As always, though, I think Google has many cards to play and tricks up their sleeves. They are behind Microsoft and Amazon in the cloud, but I would not count them out of AI. I do think they need to be more aggressive with acquisitions (remember Android, YouTube, DoubleClick), but I am confident they will go on the attack again soon.
Despite the lack of attention, Google has been the best performing FAANG stock of late, hitting all-time highs daily and the ongoing DOJ investigation will likely slip away under the new president.
With Search, YouTube, Gmail, Maps and Android I continue to hold Google as an 8-80 company in my portfolio.” – Howard Lindzon
“Netflix continues to be a buy the dip stock for me in my 8-80 portfolio.
The growth of course can’t possibly keep up with the last 5 years and the competition for attention will keep coming as we have seen even Apple TV release some of my favorite shows of the year.
That said, I still go to Netflix first and it remains Netflix’s war to lose.
Just this week Ellen and I spent eight hours binging on ‘The Queen’s Gambit’ which was fantastic.” – Howard Lindzon
“Spotify has been a new addition in 2020 to my 8-80 portfolio. Spotify is a founder led company that has never had it easy. It has battled the music industry (a business with terrible margins) and internet juggernauts around the world to build a top global brand. I believe the podcast and AirPods have helped make Spotify a buy the dip company for the very long term.” – Howard Lindzon
Have a great Saturday.
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