I mostly just lurk here but feel compelled to step out of the shadows, briefly. I had a long post composed but deleted it as it sounded like an attack piece, which is not the intent. I was drawn to this board because I like our host’s perspective on investing.
I suspect I am older than many here (12-18 months from retirement) so I shy away from the high risk/high reward growth that gets a lot of attention these days. That was not always the case. Back in the 90’s, I took an engineering job at a well known technology company. Part of the reason I was hired was that many employees were retiring - early - as a result of investing in the technology boom at the time, primarily QCOM.
It was a time that momentum reigned supreme*. Intrigued, I tried it, but I was late, and not very good at it. I lost money. Biggest takeaway for me: learning the fundamentals of valuation and finding a style that suited me (momo wasn’t it). It’s served me well in the ensuing 20+ years as I built a 7-figure portfolio, in spite of missing the enormous gains in SaaS in recent years.
Our host was one of the first to point out that momentum investing in the Covid era can be very, very lucrative but also very, very risky. Valuation always comes home to roost. Momentum requires getting off the roller coaster when it reverses direction. He made so much sense he even got posts pulled by those he offended :).
*Today is very different than the dot-com boom but momentum investing and valuation are not. Know thyself and the investment style you are employing. Find what works for you and learn from those around you.
Back to lurk mode. Appreciate all who post here and elsewhere on TMF.