The Times They Are A-Changin'

I’m spending time on SA more for amusement than for learning. One thing stands out, a great many Tesla bears are calling Tesla’s valuation ‘insane’ and the stock a ‘meme stock’ which is the equivalent. I don’t bother to argue with these opinions because more often that not the authors tend to be rather rude. On occasion I find some I can converse with. My latest comment:

@chicagotim1 "If you've been long TSLA, good for you; this stock is just not for me."

Could it be that your valuation model is wrong? I happen to think that the 20th century “Security Analysis” bible by Graham and Dodd never took into account the fast growth rate of 21st century technology. Graham and Dodd works for steady state enterprises but not for fast growing disruptive innovators. Back in 1934, when “Security Analysis” was first published, bonds were ‘investments’ and stocks were ‘speculation.’ Ben Graham accused Edgar Lawrence Smith, the author of 1924 book “Common Stocks as Long Term Investments” of fueling the stampede that caused the 1929 stock market bubble and crash.

Already a century ago there were signs that markets were developing and with Information Technology (IT) the development has just accelerated. The James Webb Space Telescope (JWST) is putting in doubt the Big Bang Theory. What changed? The available data about what the universe is really like. Same for markets with the evolving technology revolution.…

Thanks Fools for the James Webb Space Telescope thread!

The Captain

Bob Dylan - The Times They Are A-Changin’ (Official Audio)