Hello Saul and Friends,
I’m a longtime MF member in my early 50s who recently discovered this excellent discussion board and have learned a great deal by reading the past few months worth of posts, so thank you so much for your ideas. I’ve been investing for 30 years and have been pursuing great companies (Mostly rule breakers) with a buy and hold strategy. I already owned many of the SaaS companies you all discuss here when I found this board.
I know this board is focused on hypergrowth companies, but I’m curious as to whether you all think hypergrowth investing should be an “all or nothing” strategy. As someone who was burned badly by the 2000 dot-com bubble bursting, it seems very risky to invest 100% of a portfolio in hypergrowth companies. It seems to me like building a baseball team with all sluggers (HR or K) and nobody to get on base.
I’ve had my share of huge winners like AMZN, NVDA, NFLX, TSLA and ZM and also plenty of flameouts, and I realize how hard it is to find these hypergrowth companies since they are the true unicorns of the investing world. I can’t argue with the returns many of you are achieving, but do some of you feel it is ok to settle for some singles and doubles instead of always swinging for the fences?
For example, I own both TDOC and LVGO so today was a sad day for me in the near term as LVGO seemed to be a true hypergrowth company. At least for now though I am planning on keeping both of them and hoping that the combined company becomes a solid doubles hitter with less risk of striking out, with the possibility of growing into a juggernaut over time. I would consider a 3x gain in TDOC going forward over 2-4 years to be a win, even though recency bias would suggest that isn’t a spectacular return compared to 2020 results so far in most of the stocks discussed here.
Sorry for the long post but I’m just trying to reconcile these exciting things I’ve learned from this board with 20+ years of Motley Fool investing philosophies.
Thank you so much for your ideas and input!