A brief thought on Square

Square had a huge run-up some months ago when they announced a trial exposure to bitcoin. It since has come off those highs quite a bit. I wonder how much of the 5% or so drop yesterday was due to Bitcoin’s 50% drop in price? Since only a trivial amount of Square’s revenue and revenue growth, if any at all, is related to bitcoin, this doesn’t seem very rational.



Looking at my other positions price moves yesterday, I would spitball that roughly 2.5-3% of the 5% drop in Square was driven by the drop in cryptocurrency prices rather than the more broad dip for “high-flyer tech stocks”.

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I think that the highly esteemed “Saul” and the leader of this board would probably reply, “Daily the market is supposed to be irrational, long term the value shines through. This is what makes us rich.”

Are something like that.




Sounds like a differently worded version of “In the short term, the market is a voting machine. In the long term, it is a weighing machine.”

Ben Graham said
“Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.”

After watching my portfolio climb about 45 percent since last year this time, I am wondering if this is not the time to sell wisely?