With all of the ‘Magnificent 7’ stocks, save for the notable exception of Tesla (TSLA), trading near their all-time highs, applying the term “cheap” to any of them might sound like a contradiction in terms. Since the constituents of the elite group are quality names in their own right, they are very rarely available at mouth-watering discounts.
When such discounts occur – most recently in 2022 – buying them cheap has made perfect sense. Warren Buffett’s famous “buy the fear” analogy has generally worked wonders in quality tech stocks even as the “Oracle of Omaha” himself has generally shied away from the sector, finding it to be outside his circle of competence.
