Last week Meta released results that were positively received. Daily active people on their various social media platforms rose 5% to 3.35 billion. That's a lot of individuals!

The average price per ad was up 14%, so group revenue rose an impressive 21% to $48 billion for three months. All that growth only came with cost increases of 5%, which meant Meta's profits jumped 49%, with net profits of $20.8 billion. The company is a cash-making machine.

The most important announcement was that Meta plans to spend $60 - $65 billion on investing in its future. When companies get this big and profitable, it is always tempting for management to dial down risk, and rather use all the cash generated on stock buybacks and dividends. Meta says the money will be spent to make their core business better and to further develop their AI ambitions.

As it stands, Meta has $78 billion sitting in cash on the balance sheet and they are expected to generate a further $52 billion in free cash flow. It means that $65 billion is a big bet on building Meta's future, but CEO Mark Zuckerberg is being quite sensible.

The company is well-positioned in its core advertising market and is one of the key players in the very important and fast growing AI industry. We are happy holders of the stock.

On Mondays, I write about Vestact's approach to the asset management business.

If a new client arrives with a solid sum of money, say $100 000, we currently put them into a portfolio with just 13 stocks. Some of our competitors think that's crazy, because we are far too concentrated.

My reply to that is that we really like these companies, and that being focused is a good way to outperform the overall market. There are also parts of the market that we want to avoid.

Remember that to concentrate doesn't necessarily mean to increase risk, because the companies we own are very large and diversified themselves. Clients are paying us 1% per annum to do more than match the market. If that was enough, we could just buy everyone index trackers and fall asleep.

If we put all of our money into US Government Treasury Bonds we'd be concentrated but our risk would be low. If we put every cent of everyone's money into Nvidia we'd be concentrated and the risk would be high.

With our tight portfolios, we are able to diverge from the S&P 500, without being too badly affected when one of our core holding gets walloped. It's a trade off, and we think we have it about right.

Money alone cannot provide a lasting sense of purpose or fulfillment, even though it offers financial freedom. Many people, especially young men investing in speculative markets like cryptocurrency, still struggle with loneliness and dissatisfaction. This disconnect arises because money, while useful, is an insufficient foundation for a meaningful life. Humans, like donkeys, need purpose to thrive.

A strong sense of purpose can enhance financial success by encouraging behaviours that foster stability. While money can help facilitate meaningful pursuits, it cannot create purpose. Research shows that connection, volunteering, and social bonds contribute more to happiness than financial wealth alone.

The true power of money lies in its ability to support what is meaningful. Generosity, spending on others, and investing in non-essential yet purposeful activities can bring joy and even financial returns. Ultimately, purpose-driven living - rooted in authentic relationships, creativity, and exploration - provides more fulfillment than any financial achievement. Money can support purpose but cannot replace it.

To create great things, consistency is key. Noah Kalina has been taking a selfie every day since 2000 - Everyday turns 25.

One in five people suffer from insomnia. Four methods can help you get back on track with your zzz - A quest for perfect sleep.

Chinese stocks in Hong Kong dropped after Trump hit China with a 10% tariff. The Hang Seng China Enterprises Index fell 2.5% before trimming losses to 1% post-Lunar New Year. Weak consumer demand and the property slump continue to weigh on sentiment, with investors eyeing March's legislative meeting for possible stimulus.

In local company news, Truworths expects a softer first half, with earnings down 4-8%. Truworths Africa looks tired, but their Office UK brand seems to be trading well. Elsewhere, Capitec bumped up its profit forecast for 2025, and now expects a boost of up to 32% compared to last year, thanks to lower bad debt provisions.

US equity futures are in the red pre-market because there are no short-term winners in a trade war. The Rand is on the back foot, trading at around R19.00 to the US Dollar.

It is another busy earnings week ahead. Tonight is market darling, Palantir. Tomorrow are two big Vestact holdings, Google and Amgen.

Remember to keep calm and not get too distracted by dramatic news headlines. Enjoy the first week of February.