In his latest Semper Augustus 2022 Annual Report, Chris Bloomstran provides a comprehensive analysis of the Fab 5 – Apple, Microsoft, Google, Amazon and Facebook, and discusses their future. Here’s an excerpt from the report:
If I had to put together a list of companies and their common shares most likely to dominate over the coming decade or two, the Fab 5 would not be at the top of my batting order; certainly not all five of them.
It’s always a fun thought exercise identifying a company of companies that an investor could own for some long-term horizon if they could never make a portfolio change. Technological obsolescence, competition from outside (or with each other), regulation, starting valuation, lack of reinvestment opportunity and brand affection are all factors making the Fab 5 tough selections.
Time will tell, but the history of great businesses remaining in the leadoff spot indefinitely matches the history of sovereign nations and currencies standing the test of time, which will tell.
You can read the entire report here:
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