Luciuse’s post # 83520 seems brilliant to me and expresses exactly what I have been thinking. Our board is for finding the best companies in the best fields, with the greatest tailwinds and the longest runways! They are high, high, confidence positions. We mean to hold them until there is a major change in the story.
To sell out of your position within a minute after results came out because their revenue was"only" up 101% ??? (instead of up 104% as you hoped for), and because of “guidance,” of all things, not on the basis that there is anything wrong with the company, or the revenue number, not that anything has happened to shake your confidence, but because you are betting that the market, the crazy market, will sell off because of it… that is just straight out gambling! It’s not investing! It is beyond silly! It’s ridiculous!
It doesn’t matter to you that there were a dozen other metrics showing that they are still hitting it out of the ballpark!!! NRR at 178%!!! RPO up 99%, and more than seven times this quarter’s revenue!!! Million dollar customers up 24% from 148 to 184, sequentially!!! Etc, etc, etc.
That’s gambling and day trading, not investing. And day traders eventually go broke. Almost all of them.
And here’s a quote from Luciuse’s post. Please go back and read all of his post:
a second, worrying trend creeping in: the expectation that our companies execute in absolute perfection, with surprises only ever to the upside. The reality for every company, as everyone who has ever worked for a company knows, is that business doesn’t happen in a straight line. It never does… These companies are growing at breath-taking speeds, yet on top of that enormous growth we’re expecting them to know one quarter ahead EXACTLY by how much they’ll grow next quarter, so they can build the appropriate ‘beat’ into their guidance, and they should grow quarter after quarter by the exact same (or improving) QoQ sequential growth rate. That is asking the impossible, and will invariably lead to a sell-out every other quarter or so.
Best,
Saul