I am BUYING Every Share I Can

When it comes to my investing style, I'm pretty selective. I don't chase stocks. I don't buy just because something is going up. But there is one company in particular that I've been buying up this year and another that I just started buying up more frequently. In fact, I'm trying to accumulate as many shares as I reasonably can. Again, I'm not one to chase stocks. Instead, I focus on buying highquality stocks at great valuations. As a CPA, I have built a vast knowledge on how to properly assess each of the financial statements to conclude the quality part. And then from there, we dive into valuation because great investments aren't about finding cheap stocks. They're about finding exceptional businesses. And both the primary stock we'll be looking at here today and the newer stock, they are both down double-digit percentage points in the past 12 months. And today we're talking about two highquality businesses that the investing community will be wishing they bought more of while they were down. And those two companies are Meta Platforms and Marcato Libre. Let's begin with the primary stock I've been building a bigger position in, which is Meta Platforms, stock ticker META. The market still underestimates Meta. They did that with Alphabet. They did it with Microsoft. And now they're underestimating Meta. And I believe the same will take place. a strong rebound and higher highs in the future. What's amazing to me is that many investors still think Meta as a Facebook, a Instagram or threads, the key part of the company, but that's far too simplistic. Meta is becoming one of the most important AI companies in the world. Think about what they already possess. Billions of users, massive engagement, enormous advertising reach, and incredible data. Now layer AI on top of all of that. Meta can use AI to improve advertising effectiveness. content recommendations engagement monetization, and that's exactly what we're seeing happen across their family of apps. They have more than 3.5 billion in daily active users. So, from a demand perspective, they continue to attract more and more people. And in addition, more people are making a part of their daily to-do. Ever been caught up in a doom scroll? Odds are likely a meta platform of some sort. Say you're going to look for just 2 minutes and then all of a sudden realize it's been 30 minutes. So with that information, we can see the product is attractive and that's what will continue to drive future results. Looking here, we can see record revenues of nearly 215 billion, record operating profits of 88.5 billion and strong operating margins above 40%. Meta shares have gone higher over the years by being one of the largest advertisers in the world today. Looking here, you can see the three largest advertisers, that being Alphabet, Meta, and Amazon. And for the Alphabet figures, which is the largest of the three, that only includes Google search ad revenue, not even including YouTube, which would make the figures even bigger. And to be frank, I'm invested in all three names, and I love all three names. I accumulated Alphabet when it was far too cheap. I accumulated Amazon when it was far too cheap. They are now two of my largest positions, and I have very big gains in each of them. And if you're interested in seeing all the stocks I'm buying and selling, get weekly market reports and option trades, then consider joining my investing community, the Stock Investors Edge. We just rolled out a brand new valuation website feature for all Edge Plus subscribers included in their membership. Check the link down in the pin comment below and join our community today. All right, so when it comes to Meta, we know they have been one of the big hyperscalers investing billions into AI and this is where investors are missing the boat. Buying meta today is not based on their results from today. Buying meta today is for what they are going to become. The investment in AI is massive, but the results and the efficiencies that will be gained from it are going to be enormous. You are already seeing small bits in the results of bigger growth, but more importantly growing margins, operating efficiency. Think about the ad angle, which is obviously the core of the business. The ability to utilize more AI for more targeted ads is huge. Huge for a company running the ads and huge for the platform the ads are being run on, which is meta. Think about it from my perspective. If I were to run ads about my investing newsletter or my investing accelerator coaching program, it's just ran on the platform reaching people that may not in fact be interested at all or they just skip over it. That was in essence the old way of doing it. Today, it's more of a targeted approach. Targeting my ad with individuals interested in stocks, interested in the stock market, interested in how investing and options can change their financial future. That right there is going to bring me more clients, which makes me happy, which in tune makes me want to run even more ads, which all brings us back to Meta making more money. Yes, the company is investing billions, but the future payoff is where you are going to wish you bought more. Looking here, you can see a chart showing the spending spree these huge hyperscalers are on. If you thought 2025 capex numbers were huge, 2026 is nearly double across the board with Meta set to spend around 135 billion this year and Amazon is at the top close to spending 200 billion. What makes Meta so powerful is the fact that they're funding all of this internally. The company generates enormous amounts of free cash flow. First, let me show you how much they generate in operating cash flow, which is the amount of cash the company brings in just with running the business as it's intended to run without investments. And over the past 12 months, operating cash flow has surpassed $120 billion. Now, when we look at free cash flow, that takes into account operating cash flow and subtracts the capex figures, which is everything they are spending on AI. And even with all of that the company is spending, the business still generates close to $50 billion, which is just absolutely insane. That means they can invest aggressively in AI, infrastructure, data centers, and future technologies without needing outside capital. These investments will not remain this high forever, but that free cash flow is expected to continue to grow, and that's where investors are still missing the boat. And some might say, well, the payoff won't be for a while. That could be true, which is why I'm accumulating shares, as many shares as I can. Because when it does in fact happen, the stock is going to jump in a big way. And you could be stuck chasing. You don't know the number of students I work with inside my investing coaching program that say, I wish I bought more Alphabet when it was lower, Amazon when it was lower, and Nvidia. Let the fundamentals guide you and trust the story. And when it comes to valuation, you are getting a great price on this stock with analysts looking for EPS growth of more than 10% each of the next three years and the stock trading at a forward PE multiple of just 19.6 times. For comparable purposes, the stock has traded closer to an average multiple of nearly 23 times. So based on that alone, we are seeing a discount. But at the same time, I believe the company deserves a premium from their average for the growth, but more importantly, the efficiency that will be gained in future years. Again, I know I keep going back to it, but this is exactly how Alphabet and Amazon played out for me in very similar stories, and I don't want you to miss this one. Before we move on to stock number two, let me take a moment to thank today's video sponsor, which is the Mly Fool. The Mly Fool has a ton of great resources and products available for investors of all different levels. And right now, you can check out their 10 best stocks to buy when you go to fool.com/mark to check it out completely free. All right, so if Meta is the stock I've been accumulating this year, what is the new stock on my list that I'm just beginning to accumulate more shares of? That stock is going to be Marcato Libre, stock ticker Mi. And when it comes to Melly, this is my favorite international growth story. If Meta is one of the best businesses in America, Marcato Libre may be one of the best businesses outside of the US. The company has built something incredibly difficult, an ecosystem. Most people think Marcato Libre is simply the Amazon of Latin America, and that is certainly the right thought process. But that's not really all they are anymore. Today, they're also a payments company. Fintech logistics lending and e-commerce all under one roof. What excites me the most when it comes to Marcato Libre is the growth runway ahead. Marcato Libre has a market cap of $86 billion, but over the past 12 months, shares have come under pressure down 30%. And if you're enjoying this video, do me a huge favor and smash that like button down below as it really helps the channel more than you can think. But getting back to Melly, many Latin America markets are still earlier in the adoption cycle than the US. That means Marcato Libre has opportunities across digital commerce, digital payments, and financial services for many years to come. I think many investors underestimate just how dominant Melly has become. This is one of those businesses where the stronger it gets, the harder it becomes for competitors to catch up. Those are the types of businesses I want to own. Looking here, you can see strong growth the company has seen in revenues, which has surpassed $30 billion over the past 12 months. Operating income is up three billion and operating margins are hovering around the key 10% threshold that I typically look for. The fact of the matter is this is a company still very much in the early stages of growth and they're investing in future growth. Here is something I really love about the company and that's their growth in free cash flow which allows them to invest further. Prior to the pandemic they had 314 million in free cash flow. Today it's up to nearly 12 billion. a massive jump. So, you might be asking, well, why is the stock down so much? A lot of it has to do with the pressures and concerns around their finance side of the business and fears of margin compression and risk of their credit book. Look at this slide from the company's latest earnings report. You can see the decline in operating margins and net income margins. doesn't look great. And most investors only look at the headlines without diving deeper into the report like I do because when you do, you find out management actually explained it all pretty well and that the entire margin compression was in fact related to investments that are in fact working. The company is now offering free shipment in Brazil at a lower price which has resulted in rapid revenue growth. And then on the credit side, that book of business nearly doubled. But because of the accounting rules, the company is forced to set aside a provision for the full lifetime loss on those loans, which obviously will make the credit side of things look bad when there is big growth. But when it comes to those two factors, both of these things were actually in fact deliberate and not in fact weaknesses. When in reality, the company in Brazil's market is on fire in a good way. The company lowered their free shipping total spend from $70 down to $19 in their local currency. It almost sounds very similar to a company that did this years ago. Oh, wait, they did. It was a company called Amazon and Melly. They're following a very similar playbook. Another area that continues to grow and has big upside is advertising. A segment that saw 73% growth year-over-year, and it is expected to reach $6 billion in the next 3 years. In terms of valuation, shares currently trade at a forward PE of 41 times. And some may look at that and say, "Well, that's not very cheap." But when you're looking at a company where earnings are set to grow by more than 40% in 27 and 28, giving that a PEG ratio of around one actually makes the stock look very intriguing. Like Amazon, Melly is very diversified business with a lot of different levers they can pull and lean on, which makes it even more compelling. Do not sleep on the long-term growth potential of Marcato Libre. And what's interesting about both Meta and Melly is they look very different on the surface. One is social media, AI, and advertising. The other is e-commerce fintech payments and advertising. But they share something incredibly important. They both have ecosystems. They both have network effects, and they both have long-term growth runways. That's a powerful combination. Again, the goal isn't to find stocks that can go up next week. The goal is to find businesses that can continue creating value and compounding your investment for years to come. When I find companies that have strong competitive advantages, growing free cash flow, long runways, and exceptional management teams, I don't spend my time trying to trade them. I spend my time trying to own more of them and to track all my buys and sells. Make sure you join my investing community using the link in the pin comment below. So, yes, these are two stocks I'm aggressively accumulating, not because I know what they'll do next month, but because I believe the businesses will be significantly larger over the next 5 to 10 years. And if you enjoyed this video and found any value, do me a huge favor and click that like button down below and leave a comment. Thanks again for watching and we'll see you in the next one. Take care.