Why you should have Microsoft and Meta in your portfolio

Ahmed Riesgo, Chief Investment Officer at Insigneo, explains why you “definitely’ want to own them now.

Transcript

00:00Amin, let's start with big tech because Meta and Microsoft are both powering higher after earnings.

00:05You look at those reports, you look at those growth rates, and you think what?

00:10I think you definitely want to own them.

00:13Now, I think in the future, despite the moves we're having today, I think in the future,

00:18they're going to look a lot more like utilities and defensive positions in your portfolio.

00:23So I don't think you're going to get the growth going forward from these names,

00:27but you definitely want to own them.

00:28They're fine companies, they're growing earnings way above the median stock in the S&P 500.

00:34So you definitely want to have a good, healthy position of many of these big tech names.

00:40Do you want to buy them at these levels, though?

00:42Should note that Microsoft just crossed $4 trillion in valuation.

00:47Are you a believer in the AI rally at this point and that there's still room to run,

00:52even if the growth rates aren't as impressive?

00:55Yeah, so I don't think, you know, you're starting to hear like bubble territory talk.

01:00I don't think we're anywhere near there yet.

01:02And like I said, you definitely want to own these names.

01:05Now, do you want to chase them for growth?

01:07I think that's the difference here.

01:08I think you want to have them as ballast in your portfolio to hold them more as defensive positions.

01:15But I don't think the growth in the future is going to come from these names.

01:19These that, remember at this point, these are high capex companies.

01:23They're going to look a lot more like airline companies in the future than right now.

01:29And what I mean by that is that they're largely indistinguishable from one another, right?

01:34Anthropic, although that's not a public name, but Meta, Gemini models.

01:37It's sort of united in Delta, right?

01:39It's sort of a preference.

01:41But you're going to have to have them.

01:42They're indispensable.

01:43That's why I'm saying you definitely want them in your portfolios, but you don't want them for growth.

01:47You want them for defensive posturing.

01:48You want them for defensive posturing.