Crazy tech valuations and the death of value investing
What do you guys think the crazy prices of tech stocks as of late? Twilio for example IPO'd at around 15 and traded as high as $63, even the company has little if no earnings yet.
To that part, to what extent do you think that value investing has become less and less relevant in today's market? All the previously famed value investors have not outperformed for years e.g Buffet has not outperformed the market for 7 years. Most of the best performing stocks of recent years would have been considered way too expensive for value investors.
Anyway it would be interesting to see what the monkeys in AM think about this.
happens every now and again. people called Buffett an idiot leading up to the declines of 2000-2002. value will have its day again
We see some huge numbers for tech companies for now, but they're obviously being over-valued. There's a lack of transparency in tech (mainly because of the complexity of the actual products) which when mixed with some rocketship companies, and what looks like some stability in the sector -- creates an over-valued environment.
When we see them drop, and we see more of the SaaS type companies IPO at lower numbers and not nearly as 'unicorn'-like I think we'll see the Buffets beating the market again.
I am guessing OP is ~15 years old
You had a bad day , feeling a little cranky ? Oh and any advice on how I could stop sounding 15 years old would be great to hear too
I'm just making the point that you seem to be forgetting or unaware of something called the dot-com bubble and subsequent crash ~15 years ago.
Calling "value investing" dead because tech stocks are once again garnering extremely high valuations is one of the most retarded things anyone can say. I'm not trying to bitterly defend value investing but history shows us that asset bubbles ALWAYS burst. Nothing can trade at crazy multiples forever because eventually growth slows down...it's not just a law of finance but a law of physics.
Fair enough, the title is slightly dramatic. To be fair I didn't say value investing is dead
This type of response only supports the claim that you may or may not be 15 years old.
Here's a piece of advice on how you 'could stop sounding 15 years old,' don't do exactly what you just did.
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