Reading through this sub you get the feeling that everyone “knows” it but no one is exactly giving a single reason for why, other than “it should because of high valuations”.
It reads as a lot of wishful thinking and arrogance. Where the hell do you place Apple, the largest company in the world growing 50%?
Growth has outperformed value for 20 years, and the winners of the dot com crash , like Apple, Microsoft and Amazon, have outperformed everything by a huge margin in the last 30 years.
Either the valuation methods were good to use and it’s just that the type of company that wins the future has so much higher margins and network effects that the definition of key value metrics has to change, OR (like many here seem to suggest), somehow this will all “regress to the mean” and somehow Sysco, public enterprise group, and Cincinnati Financial (great companies I also own) will eventually outperform the other ones I mention?
Give me a break, it has nothing to do with finance and everything to do with business model. If you can’t understand how business has changed finance, then you will continue to underperform by relying on outdated financial discipline viewpoints.
Submitted May 01, 2021 at 05:59AM by godisdildo https://ift.tt/3xBEiaB
