So I hope you see that I
Would love to love you
And that she will cry
When she learns we are two
‘Cause I couldn’t stand the pain
And I would be sad if our new love was in vain
So I hope you see that I
Would love to love you
And that she will cry
When she learns we are two
If I fell in love with you
Once the privacy, disclosure, accounting and anti-trust issues are fully priced into these stocks, we “would love to love” some parts of these businesses. Things were similar in 1999. Our investors expect us to stick to our discipline and only buy these great tech businesses when they are deeply out of favor. Look at how analysts on Wall Street have fallen all over each other to raise their price targets when nobody was left to add their buy recommendation.
The stock market always does what it must do to frustrate the most people. Investors could very well “love to love” the FAANG glamour stocks most of the way down, sucking every possible dollar into these crowded and popular trades. It would be sad if this “new (tech) love was in vain” and we believe investors “will cry” if they learn that 2018 and 1999 “are two.” We don’t expect many investors to agree with us, because when it comes to glamour tech, the stock market is “in love with you.”
William Smead is CIO and CEO of Smead Capital Management.