Why do investors care about stupid stuff?
Sometimes when you speak with investors they focus on stupid minutiae like customer concentration, valuation with lease adjustments (wtf?), SBC and other crap. If the only thing that matters is whether they beat earnings or not isn’t that useless?
80/20 focus on what makes stock up or down! Not some tidbit in a 10K about strategy or insider buys/sells. I’ve talked to an investor who mentioned the “ROIC is 40%”. Who tf cares? If ROIC changes to 30% stock will be down. if it goes up to 50% stock will be up. Maybe if you invest over 1 year (which is asinine) but otherwise seems dumb
Do you see any common traits in these investors who care about stupid stuff? What are their backgrounds usually?
Idc what your time horizon is as an investor, I don’t think many investors would consider customer concentration “stupid minutiae.” Imagine what would happen if a company lost a customer that represented 50%+ of total sales. Think about that for a second. I don’t think you’d need to be a rocket scientist to figure out what impact that would have to a business or stock price.
Pod monkeys weeping with affirmation rn
In all seriousness, if you think customer concentration isn't an important risk to consider for almost all investments one of these days you are in for a very painful, expensive lesson.
Honestly OP has a point. If a major customer unexpectedly churns during the quarter, the market probably won't react at all. ROIC is so irrelevant in the real world and has no bearing on future earnings expectations either.
Focus should be placed on media site investment recommendations, like The Motley Fool's top 300 buys of Summer 2023 (something that actually moves stock prices).
Yeah man totally, Buffett buy-and-holders suck lol
Also recommend SeekingAlpha, man they are sick!!
A lot of edge in my credit card alt data software here at P72, man do you believe our data guy even uses AI to do it - like bro it's next-level edge; fuck these fundamental monkeys
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