Stocknovice,
Thank you for that excellent write up. I previously posted on Bear’s thread that I had been having some discomfort with my position in SNOW for quite a while for not very specific reasons. But, reading your post reminded me of the one thing that had been gnawing at me.
I tend to be one of the folks that follow this board who does not pay much attention to valuation. But I feel that it can’t be ignored completely. The reason I feel that way is because it’s such an important part of the investment decision for so many other investors. If valuation becomes too stretched there’s no room for the stock price to grow. In that I count on capital gains for my portfolio to grow it just doesn’t make sense to hold positions that are “priced to perfection”.
You will be hard pressed to read an article about SNOW without mention of it’s very high P/S ratio. I don’t know if it’s priced to perfection or not. What I do know is that most analysts consider it “expensive”.
In a nutshell, that was what made me feel uncomfortable. Your write up here reminded me of it.