The latest results from Tesla (TSLA) and Netflix (NFLX) show how silly it is for investors to buy into themes and memes like the FAANGs, or MT. FAANG, if you want to add Microsoft (MSFT) and Tesla to the Facebook (FB) (Meta)/Amazon (AMZN)/Apple (AAPL)/Netflix/Google (GOOGL) (Alphabet) quintet.
This is a stock picker’s market.
“This environment will create an important backdrop for active investing,” said Ken McAtamney, head of William Blair’s global equity team, in a report.
“Understanding companies with differentiated business models, unique cultures, and durable competitive advantages will be increasingly crucial to determining investment performance in this complex environment,” he added, noting that “the dynamic shifting of corporate winners and losers remains a constant.”
One of the biggest mistakes that an investor can make is assuming that all stocks in a certain sector should…
