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▲ JKCalhoun 4 days ago

I assume you mean an S&P500 tied index fund?

I asked "a friend":

• Meta (META) ~3.1 %

• Alphabet (GOOGL + GOOG) ~3.8 %

• Tesla (TSLA) ~1.6 %

So just under 9%. Significant, I suppose, for just 3 of 500 stocks.

EDIT: since "etc." was mentioned, I thought I'd toss in some of the other top stocks in the S&P500:

• Apple Inc. (AAPL) ~6.7 %

• Microsoft Corp. (MSFT). ~6.6 %

• NVIDIA Corp. (NVDA) ~6.0 %

Amazon.com Inc. (AMZN) ~3.8 %

Another 20% or so. So the above seven stocks comprise about 30% of the S&P500 (Apple, Microsoft and NVIDIA are the "Big 3" at about 20% when combined).

▲RickJWagner 4 days ago | parent | next [-]

Assume a market weighted index fund, not an equal weighted index fund.

▲JKCalhoun 4 days ago | parent [-]

Sure, the above was for Vanguard (VOO or VFIAX).

▲ectospheno 4 days ago | parent | prev | next [-]

> I assume you mean an S&P500 tied index fund?

I would assume VT and/or BNDW. Most sane index fund fans aren’t all in on s&p 500.

▲baxtr 4 days ago | parent | prev [-]

On a P/E basis neither Meta nor Alphabet seem overvalued.

▲westpfelia 4 days ago | parent | next [-]

Not when compared to the likes of Tesla and Palantir. But once upon a time a P/E of 35 was insane. For meta I still feel like its too much. Apple.. Well less so.

The question is do you think you can get 35 years of this level of earnings out of a company. If yes or more then it makes sense. But a whole hell of a lot can happen in 35 years.

▲DonnyV 4 days ago | parent | next [-]

Meta makes 95%+ of its revenue on their ads. Whats crazy is that they own the platforms that most of their ads run on. Instagram, Facebook, WhatsApp, etc. How do we know they're not fudging the stats on the ads? They're already known not to be trusted. How has a third party Ad Verification system not popped up by now. Not for just Meta but for all Ad networks.

▲Schiendelman 4 days ago | parent | next [-]

Game out your theory that they are overstating stats. It wouldn't matter if they were. Individual advertisers are getting enough value in downstream effects (actual sales) that they are paying what they are paying.

▲xhkkffbf 4 days ago | parent | prev | next [-]

Presumably the revenue is something that ends up in a bank account. So an audit would make sure that number is accurate.

But I agree with the general problem of auditing advertising and performance. I've tried advertising on FB and my metrics never showed half of the engagement that they claimed.

▲aaronax 4 days ago | parent | prev [-]

The advertisers can see the traffic coming in from clicks, I would think. There would remain some opportunity for fraud by FB if some of the ad money is just for impressions but it seems like it would be difficult to keep click rate up while shorting the buyer on impressions.

▲JKCalhoun 4 days ago | parent | prev [-]

Does P/E ratio (example you gave: 35) actually equate to years of profitability (also example you gave: 35 years)?

▲prepend 4 days ago | parent [-]

It means you’d need 35 years of earnings to equal the price paid today.

So, yeah it’s sort of like using that logic. Not exact as a dollar 35 years from now isn’t now, but you get the gist.

▲JKCalhoun 4 days ago | parent [-]

Thanks!

▲Ekaros 4 days ago | parent | prev [-]

I think problem with both is that they get money from advertising. Once companies really have to start tightening belt that might largely go away...