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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Elroy who wrote (68324)8/13/2021 2:57:57 PM
From: petal  Read Replies (1) | Respond to of 69612
 
As I usually invest in technology stocks, the value of the company is often in the brains of the engineers, and it's not on the balance sheet. So....I'm not really a value investor.
Oh, well, yeah, that's a completely different story indeed. To get back to the initial dichotomy of this discussion, I would characterize tech as the epitome/archetype of a growth stock. Or maybe even further out on the spectrum – possibly "dream stock" or "utopian stock" is a better name (since any ol' company can be a growth stock temporarily, if the industry is temporarily hyped – the recent example of sneakers being a good one).

While paying three digit PE's for "old economy" stocks makes no sense to me (since prolonged growth seems more or less impossible), paying top dollar for a tech co "which one thinks one knows something about, and in the management of which one thoroughly believes" seems proper, since the upside potential is so massive if one's judgment is good. In that sense, the mindset isn't really different from value investing! The only difference being that in the one instance, price has to catch up to (future) value, while in the other, (current) value has to catch up to price. In theory, shouldn't be much difference. In practice/reality, however, it seems to be easier to spot cheap current value than discounted future value. More investors have become rich that way (AFAIK).
I just like to talk about stocks, any stocks!
I certainly can relate to that :-)

As a tech investor, what do you thing about Twitter? That is my ONLY growth/tech stock :-)

(Maybe reply in DM if you want, so as not to clutter the thread with OT.)

I trade much less than others here.
That makes sense – I think tech stocks are probably the ones where a buy-and-hold strategy is most apt.

There is no one perfect trading/investment strategy – always interesting to hear about the style of others, and especially that of the regulars of this board. (One can learn a lot simply through listening...) Thanks for sharing yours!