In this photo illustration, the Google, Amazon, Meta, Apple and Microsoft logos is displayed on a smartphone screen.
Jaque Silva | SOPA Images | Lightrocket | Getty Images
Somewhere along the line we forgot how to value seven large companies. We knew they were better than almost all of the other companies out there. We knew that their managements were incredibly good and their prospects enormous. But looking back, we stopped caring at what price we bought these stocks and, instead, decided that they had to be owned no matter what, even if their valuations exceeded their normal bounds.
The problem, oddly, isn't that anyone got anything wrong. No, the problem is that even after this monster sell-off that we have been going through, we still can't figure out how to value them.
So, let me give you my take on how this now disparate set of stocks, known as the "Magnificent Seven," became such a motley crew and what we can do about it. Six of them are Club holdings: Alphabet, Amazon, Apple, Meta Platforms, Microsoft and Nvidia. We don't own Tesla, the seventh stock in the cohort. Tech stocks were bouncing in early Monday trading. But it was only a drop in the bucket after last week's carnage. We'll see if the early tech strength holds by Monday's close.
