The learning curve

From Yahoo, we can see that ZM has a PS ratio of 91; CRWD has a PS ratio of 37; and DDOG has a PS ratio of 18; so on this basis it would tell me that the best place to put my new money is into DDOG.

I saw this in a post today. These numbers are not correct. ZM’s is 93 and CRWD’s is 41, so close enough I suppose. But DDOG’s is 69…a pretty far cry from 18.

I say this not to call out the person who posted it, but to make a larger point – well, two.

  1. As Saul says often (and I think in the KB), do NOT get your numbers from Yahoo or other aggregators. Go to the source (the company’s investor relations page) directly.

but more importantly:

  1. There is a learning curve here. I believe like Saul – we are all capable of taking control of our investing lives, and running a concentrated, modified buy and hold portfolio that crushes the market (or any other way of investing). However, I don’t believe we’re born with this ability, or that we achieve it overnight. You can absolutely get there by following this board, but you have to put in several months (in my estimation) before you start to get it. And the payoff is very worth it. But don’t try to take short-cuts. Trust me. The reason we don’t do screeners or lists is because they’re a mile wide and half an inch deep. We prefer deep dives, not because we’re gluttons for punishment or people who just love reading and studying and numbers, but because that’s what it takes. Anyone who follows DDOG enough to own it – even if they pay no attention to PS ratio – would know that it couldn’t possibly be that cheap. Not trying to make anyone feel bad…I only say this to encourage you to put in the work, and to remind you that shortcuts don’t work – you have to really, really get to know the companies you invest your money with!

Welcome and enjoy
I know we get a lot of new followers and people finding this board all the time. Part of me thinks we need to post the board rules daily. But consider this today’s reminder: check out the links in the Announcements section on the right hand side of this page. Read the Knowledge Base. And then hang around and just watch for a while, and see what we’re up to. Don’t feel compelled to contribute right away.

Welcome and enjoy,
Asst Board Manager