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It is similar in my view... Uber now valued at $78 billion without any profits in it's entire history? Not only that, it's burning billions in cash each year? Are you kidding me? Uber does not even have a viable product. Get outta here!!! If this isn't the definition of insanity I don't know what is.
Most tech companies don't have profit. Amazon is the same way. It is by design because they reinvest all the profits into the business to grow it. IF they chose to, they could have millions in profit. This is business 101 for tech companies and many companies.
I tell you that growth is frightening. I still say when the **** hits the fan for the stock market its gonna be a fall off a cliff. But that fall may not come before it grows another 50 percent. This is simply pure greed. As soon as the greed wheel stops turning, the ride wont stop..it will cascade down a hill.
I agree on the greed aspect, and I try to remember Buffett's famous quote about being fearful when others are greedy. The only tech stock I own is AAPL (not even sure I really consider them a tech stock, but whatever), and I'm up 12% on that after only a few months. Despite already being the most valuable company in history, they continue to grow, and continue proving the nay-sayers wrong. Being the most profitable company in the world with a very reasonable valuation and the potential for strong capital returns going forward makes them a much more sensible LONG TERM investment than the FANG stocks, whose ridiculous valuation levels seem to put them in the "others are greedy" category.
I do agree with the Bitcoin comparison on some of these, as you are buying them on the "greater fool" theory that no matter what the valuation, someone else will always pay you more when you sell. That may be, but for how long? I think these are the stocks that will be slammed the hardest when the next recession finally does hit, and that's especially worrisome when you think that tens of millions of us (myself included) own these stocks indirectly, as these tend to make up the biggest holdings of most of the large cap and index funds that we all hold in retirement accounts.
Anyway, to each his own, but I honestly think APPL is the best of breed in this group.
Quote:
"We simply attempt to be fearful when others are greedy and to be greedy when others are fearful."
-Warren Buffett
Last edited by treasurekidd; 06-15-2018 at 06:32 AM..
And Netflix goes up and up and up.. remarkable.. Some analysts call for 25 percent more growth by December.. crazy..want to jump on but something holds me back.
Stocks like Netflix and twitter keep getting huge gains day after day. But I keep not investing waiting for a pull back,which never comes. If they do pull back I fear a massive sell off just due to how far they have gone up. Anyone else like me and can't get themselves to buy after runups like that?
I wouldn't. 5 or 6 years ago going all in on the FANGs would have been a brilliant move. Now it seems risky and expensive. You know what looks like a bargain right now? Gold and silver.
I wouldn't. 5 or 6 years ago going all in on the FANGs would have been a brilliant move. Now it seems risky and expensive. You know what looks like a bargain right now? Gold and silver.
If it gets much lower I agree...does gold go all the way to 1250?
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