Like any business, the world of investing has its share of rock stars: Renowned investors who have struck gold over the years for their clients and piled up sensational long-term results. It’s easy to be a one-hit wonder, but outstanding long-term success is an art, requiring not only discipline and tons of research and analysis, but also a sixth sense when it comes to risk and reward.
Some of the biggest gains ever achieved came when gutsy investors bought shares at the depths of the market collapse in 2008-2009. Committing capital when it looks like the world is coming to an end isn’t easy, but the old adage of buying shares when there is blood in the street often proves to be correct.
In a recent research report from Jefferies, they highlight the stocks that a group of “Super Investors” have been buying and selling recently. We screened the group for five well-known investment gurus who all have incredible long-term records for clients, and picked one stock from each that they have been buying.
The huge social media leader has continued to post gigantic numbers, and is being bought by legendary value investor Bill Miller. Facebook, Inc. (NASDAQ: FB) operates as a mobile application and website that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers worldwide.
The company’s offerings also include Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application for various platforms and devices, which enables people to reach others instantly, and businesses to engage with customers; and WhatsApp Messenger, a mobile messaging application.
Many feel that Facebook’s long-term forecasts are more easily attainable, especially as the company continues to grow and employ new platforms for online advertising. Facebook is growing at two times the rate of its large cap internet peers while delivering 50%+ operating margins. Top analysts see further upside ahead from user growth and the company sees upside potential to its $80 U.S. average revenue per user through better targeting as well as improvements on Instagram.
The Wall Street consensus price target for the company is $206.63. The shares closed trading on Monday at $178.74.