https://www.thestreet.com/investing/stocks/cloud-darlings-tw…
tj
3 Likes
I don’t think anyone on this board denies the fact that these stocks could easily lose 50% of their value.
If they drop that much we would all be buying. And if we would be buying, we know other people would be buying. So there’s no reason not to just hold through any volatility. The investment thesis for these companies is that they have five to ten years exponential growth in store for them. So get on the train or step aside.
How many times does Saul need to point out that he is up over 300% in three years and if his stocks fall 50% he is only up 150%? Still decimating the broad market.
What’s the point? Why post such a silly article.
16 Likes
TJ,
This is OT and does not provide any useful information or context. If you have an opinion on some stocks, we’d love to hear it! But posting a Link with no context helps no one.
Please review the Monday Morning Rules of the Board posts.
19 Likes
FoolsGrad:
to be clear the initiatior of this thread shah0048 and myself (thejusticier) are two different tj or persons.
so you can stop the insinuation.
tj-thejusticier
4 Likes
All,
allow me to correct the math (but not the point) on this one:
How many times does Saul need to point out that he is up over 300% in three years and if his stocks fall 50% he is only up 150%? Still decimating the broad market.
If Saul is up 300%, an investment of say 1’000 grows by 3’000 to now 4’000.
If the share prices drop by 50%, he ends with 2’000, i.e. up +100% (not 150%).
If someone is up “only” 100%, he stands to lose all his gains with a 50% drop: 1’000 + 1’000 = 2’000 which turn into 1’000 after a 50% haircut.
So let’s all go back to the task at hand: looking for growth stocks that have the potential to deliver >+100% from here. This would protect us fully against a 50% drop. From the example above we see: The higher the growth before the eventual fall, the higher the protection. And if I’m not mistaken, such falls can be even worse. Amazon lost 95% (!!) of its value once - and recoved in full.
So we need stocks that give us a great cushion of success against a future recession or bear market. Sadly, this requires making up one’s mind which stocks have the potential to grow big - and to have the guts to put your money where the mouth is. This board makes it look easy but in reality it isn’t.
Wishing all good luck and good decisions based on good analyses
LNS
22 Likes
Austin,
While I agree the link-alone post is not as helpful but OT?
I think we need awareness and assessment of the downside. I like the cushion and ride it out ideas that seem very Foolish. The author brings up the old valuation boogie man that we are all well aware of and have discussed and seemingly explained away. Even with “well it’s not as bad as a real bubble.”
I think this is worthy of some thought and reply:
These are the pockets of revenue growth, in other words, for tech investors, so it makes sense that funds that need growth names in tech to satisfy the bylaws of their fund investments, will plow money into these stocks.
I guess the question is will the institutions and funds sell if there’s a growth hiccup or hold for these companies to “grow into” P/S 20+.
7 Likes
Volatility is a given. It’s also a given that shorts like to post these kinds of links to serve their own interests.
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“These companies, wonderful as they are, have moved very fast this year, and they need to give up some gains before they can move higher.”
Why does a company have to “give up some gains before [it] can move higher?” I’m not being facetious; if this is a legitimate trend in companies like those in which we have invested and now discuss, I’d like further explanation.
“For patient investors, the companies themselves will still be around, and there will be better prices at which to scoop them up.”
Unless I am missing something, the article seems to state generally that stocks go up sometimes and go down sometimes, but its all cyclical and part of a general upward trend, so buy when prices are good. If the author has figured out market timing, he should stop writing and manage my money.
-Sean
3 Likes
Unless I am missing something, the article seems to state generally that stocks go up sometimes and go down sometimes, but its all cyclical and part of a general upward trend, so buy when prices are good. If the author has figured out market timing, he should stop writing and manage my money.
If he had actually figured out market timing, and could make money at it, he wouldn’t be writing articles for peanuts, he wouldn’t be managing your money, he’d be managing his own money for a living. Since he’s trying to make a few bucks writing articles, you can draw your own conclusions.
Just sayin’…
Saul
19 Likes