Microsoft x Apple x Google x Amazon
The whole process of nature is an integrated process of immense complexity, and it’s really impossible to tell whether anything that happens in it is good or bad — because you never know what will be the consequence of the misfortune; or, you never know what will be the consequences of good fortune.
Resume
In my investment studies journey I get some questions about where and why investment, after decide to invest in stocks and how much I was in doubt about stock picking or invest in an ETF, like in another situations, I did the both in the first moment and looking the ETF compositions I see some stocks that I don’t believe enough to put my money, because of that I started to focus on stock picking and invest only in companies that I can see clearly potentials.
My option is that in the technology sector has seven big companies (Microsoft, Apple, Google, Amazon, NU, Tesla and Meta), but I will describe my perceptions only about four of them because of some similarities when looking with my values perceptions in the business that the companies are.
For a long while I used a balance strategy with the goal to maintain close the participation in the four companies, but now looking to the automation of the process of decide where invest I will need to determine a priority between these companies, let’s see my current perception and comparation.
What I’m looking for
My big point when investing in these companies is :
- Perspective => I believe in a continues growth of the company and the capacity of be competitive in you market
- Profit Health => To maintain that growth the company needs a good profit honey pot, where it can be used to spend money in strategic areas looking for a future profit
- Social Impact => What the customer and society in general think about
- Innovation => Some companies of this list have you growth based in innovation, how much they are spending in innovation now
- Diversification => That is core of my investment strategy and I appreciate that
Let’s compare
Very good - Good - OK - Bad - Very Bad
| Company | Perspective | Profit Health | Social impact | Innovation | Diversification |
|---|---|---|---|---|---|
| Microsoft | Very good | Very good | OK | OK | Very good |
| Apple | Very good | Good | OK | Very good | Bad |
| Amazon | Very good | OK | Very good | Good | Very good |
Good | Good | Very good | Good | Good |
Personal options
Microsoft
The recent acquisition of OpenAI and not to far acquisition of Activision Blizzard a holding in the gaming sector looks amazing, one thinking in the future of IA and the other a growing sector with a big potential
Apple
Is the biggest brand in the world far from competition and the currently most innovative company, Apple have some challenges around the change of the manufacture center from ASIA to another part of the globe to avoid politics impacts.
One point that make me feel a bit uncomfortable is the fact that mostly of the profit comes from iPhone and that is a sector that needs a lot and continues investments to be competitive and a mistake can cause a strong short therm impact in the company.
Amazon
The diversification is a strong power and stay a dominant in the retail sector and most important in te cloud infrastructure.
We are facing a big challenge for retail companies because of the increase of government taxes around the world that was affecting Amazon result for a while, what will be happened when the taxes start to decrease ?
The dependency of ADS is what made me a little scare, but this company have a strong potential with the data that have, the search machine and video streaming stay in a strong position at market.
References
