This Monday, strategic adjustments are being made to the portfolio, reflecting a nuanced understanding of current market dynamics and future growth opportunities. We are initiating three key trades: a partial sale of Cisco Systems (CSCO), and increased positions in both Corning (GLW) and Meta Platforms (META).
Specifically, we are selling 200 shares of Cisco Systems at approximately $71 each. This move reduces the Charitable Trust’s holding to 1,000 shares, decreasing its portfolio weighting from 2.28% to roughly 2.1%. While still optimistic about Cisco’s long-term potential, particularly in artificial intelligence infrastructure, this slight trim acknowledges recent underwhelming security revenue figures. The previous quarter revealed weaknesses in its U.S. federal government business, raising concerns about a potentially extended period of underperformance in this segment.
Despite our continued belief in Cisco’s prospects, particularly in capitalizing on the growing demand for AI infrastructure across hyperscalers, enterprises, and government entities, the most recent earnings report presented some concerns. This strategic reduction aims to mitigate potential risks should the issues within the security division persist. Furthermore, cognizant of management’s tendency towards conservative guidance, we are proactively managing potential short-term impacts on the stock price. This sale will realize a modest gain of approximately 6% on shares acquired in July 2025.
Conversely, the cash generated from the Cisco sale is being strategically reinvested to bolster our positions in Corning and Meta Platforms. We’re acquiring 80 shares of Corning at around $87, bringing the Trust’s total to 520 shares and increasing its weighting to approximately 1.2% from 1%. Corning’s strong quarterly performance on October 28 was initially overshadowed by a minor revenue miss in optical communications, attributed to slower sales to telecom customers. However, a closer examination reveals robust growth in enterprise sales, up 58% year-over-year. This momentum is expected to continue, driven by increasing demand for fiber connections within data centers as operators transition from copper to support AI node connectivity. This trend positions Corning to capitalize on the evolving infrastructure needs of the AI era.
Furthermore, we are adding 10 shares of Meta Platforms at approximately $631, increasing our total holding to 250 shares and elevating its portfolio weighting from approximately 4% to 4.15%. Meta’s stock has experienced a pullback of roughly 20% since its October 30 earnings report, primarily due to concerns surrounding aggressive investments in AI infrastructure. While acknowledging the inherent risks associated with such large-scale capital expenditures, we maintain confidence in CEO Mark Zuckerberg’s vision and execution capabilities. The recent sell-off has created an attractive entry point, lowering Meta’s price-to-earnings multiple on 2026 estimates to approximately 21 times, which is cheaper than the broader S&P 500. This marks our first Meta purchase since June 2022, when the stock was under pressure due to concerns regarding metaverse spending. We believe the market is underestimating Meta’s potential in AI and its ability to monetize its vast user base across its various platforms.
These trades are indicative of a proactive approach to portfolio management, carefully balancing risk mitigation with the pursuit of long-term growth opportunities in sectors poised to benefit from key technological trends. By strategically adjusting our positions in Cisco, Corning, and Meta, we are positioning the portfolio to capitalize on the evolving landscape of artificial intelligence and data center infrastructure.
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