Saul,
In your post you’ve mentioned “what a totally irrelevant thing to say!”
How is it irrelevant?
Hundreds visit your board and perhaps many still don’t own SaaS stocks.
You and others on this board keep mentioning that the SaaS stocks are different and because of their recurring revenues, they are protected from the normal business and stock market cycle.
My last year’s stock market pullback example confirms that this just isn’t so - the S&P500 declined 20% and the SaaS stocks fell 35% - if they truly are immune, why didn’t they hold steady at/near their highs; why did they go down almost twice as much as the broad market?
Last year’s stock market wobble was not a recession induced bear-market which are typically greater - 36% decline in the S&P500 over the past 8 cycles to be precise and during each of those, the high-growth/high-beta stocks have decline a lot more.
The topic of this thread was/is “Do high EV/S ratios hurt returns?”
The answer based on 50+ years of data/history is a resounding YES.
Thats all I have to say on this subject - perhaps it truly is different this time; time will tell.
Best,
GM