There's an incredible amount of investors I've followed that are very pleased with VZ stock's performance during the past years. Fundamentally speaking, yes, indeed Verizon has a cleaner balance sheet, way less debt, and it has done a really good job at being a decent rival for AT&T within America. However, I have strong reasons to believe that AT&T is not a fundamental play. What do I mean by this? We live in 2020, and for the past 20 years, the market leaders are those who innovate, but also those who keep innovating the fastest. Back when the internet wasn't our god, companies didn't have as much pressure for innovation since information itself couldn't even be shared massively and at the speed, it is done now. So back when Buffet was buying shares, earnings would most likely be given back to the shareholders rather than being reinvested in an asset so intangible like research&design. And in no way, I am shitting on Buffet's strategy, he's a billionaire for a reason. But what if I don't want to wait 50 years, or better yet, what if we aren't as lucky as he was were he has been able to purchase stocks during 3 major economic recessions?
AT&T isn't a fundamental play because its true value can't be pinned down to a balance sheet. AT&T is set to be the face of 5G here in the west, competing against Huawei, who in my opinion, already one the first few rounds. The US Government made the announcement that Hong Kong is no longer independent from China. The US is also legally fighting Canada for the extradition of Huawei's Chief Financial Officer. So why would the US make a global announcement that just empowered hundreds of Chinese investors, including the government? Isn't all the mainstream media telling you that there's a trade war? Would you even know that the trade war began because of the 5G race? Anyways, all I am trying to say is that AT&T will be the leader of 5G here in the west, regardless of how much debt with have, and if you cannot see the value in that, then I don't think you understand how powerful 5G actually is.
Another intrinsic value that I see is that AT&T owns WarnerMedia. Can you see the power of being the largest cellphone provider as well as one of the largest media providers? It seems too good to be true. Data recollection through cellphones in order to produce specific content based on that very same data. Disney owns literally every media company out there, so I guess I also see the value in being independent of them.
What will my strategy be like? Based on the shorter time frames, I believe there will be another price dip, and when that occurs I will enter my position. I plan on buying shares for my retirement portfolio, as well as for my trading account. Even though I will be holding for the long run, it's still a nice stock to trade around. (Aiming to buy at 28$ )
AT&T isn't a fundamental play because its true value can't be pinned down to a balance sheet. AT&T is set to be the face of 5G here in the west, competing against Huawei, who in my opinion, already one the first few rounds. The US Government made the announcement that Hong Kong is no longer independent from China. The US is also legally fighting Canada for the extradition of Huawei's Chief Financial Officer. So why would the US make a global announcement that just empowered hundreds of Chinese investors, including the government? Isn't all the mainstream media telling you that there's a trade war? Would you even know that the trade war began because of the 5G race? Anyways, all I am trying to say is that AT&T will be the leader of 5G here in the west, regardless of how much debt with have, and if you cannot see the value in that, then I don't think you understand how powerful 5G actually is.
Another intrinsic value that I see is that AT&T owns WarnerMedia. Can you see the power of being the largest cellphone provider as well as one of the largest media providers? It seems too good to be true. Data recollection through cellphones in order to produce specific content based on that very same data. Disney owns literally every media company out there, so I guess I also see the value in being independent of them.
What will my strategy be like? Based on the shorter time frames, I believe there will be another price dip, and when that occurs I will enter my position. I plan on buying shares for my retirement portfolio, as well as for my trading account. Even though I will be holding for the long run, it's still a nice stock to trade around. (Aiming to buy at 28$ )