The tech industry’s biggest fear doesn’t scare one of Wall Street’s best stock pickers at all

• The biggest fear facing mega-cap tech companies is the prospect of regulation.
• Matt Moberg, who manages the $5 billion Franklin DynaTech Fund, is non-plussed by the prospect of increased regulatory oversight, arguing companies have survived such shake-ups in the past.

Around Silicon Valley, “regulation” is a dirty word, and one that strikes fear in the hearts of even the wealthiest and most successful executives.

Look no further than a recent panel at the World Economic Forum in Davos, where Salesforce CEO Marc Benioff expressed worry. Meanwhile, Alphabet CFO Ruth Porat deflected questions on the prospect of more regulatory oversight, calling an inquiry about whether Google is too big an “unanswerable question.”

Matt Moberg, a portfolio manager who oversees the $5 billion Franklin DynaTech Fund, shares no such worries or reservations.

As a long-term investor, he’s focused on the big picture. And he says even if mega-cap tech titans like Facebook and Alphabet are forced to — heaven forbid — break up, historical precedent suggests that things could end up OK in the end, if not better.

In an interview with Business Insider, Moberg elaborated on those thoughts and also discussed how his European history degree informs his investment decisions and outlined his unique approach to diversification. Read the full story here. Here’s what Moberg had to say (emphasis ours):

“Even big concerns like the regulations that could affect mega-cap tech companies, we’ve seen that play out before. So we have a playbook. And while it’s not the same, they’re great reference points.

Quite frankly, things rarely end that poorly. Even if these companies get broken up, their break-ups actually end up being great companies themselves. Doing this gives us some confidence over the long term.”