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Tesla
The speculative fever seems to be at full blast as we’ve seen with the wild price moves in stocks such as Tesla, or alternatives such as Bitcoin.  Many people are applying pandemic-inflated growth levels into perpetuity.  One example, I find interesting is Zoom Video Communications (ZM).  The stock rose 400% last year, as the technology...
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I’ve written quite a few times about the Tech Bubble that currently exists in the U.S. stock market.  No stock better epitomizes this madness than Tesla.  Over the last 12 months, Tesla generated $24.578 billion in total revenue and generated EBIT (earnings before interest and taxes) of negative $69MM.  Tesla’s market capitalization is a staggering...
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There was a really great interview between TD Ameritrade and Rob Arnott, who is one of the most respected stock strategists in the field.  Keep in mind that the spread between growth and value has literally never been greater. While it is easy to look at the recent past and extrapolate that into the future,...
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Sometimes it is easy to look at what is working in the stock market and assume that it is the “safe and prudent” way to invest, because it is working.  Remember that investing is about buying securities at a discount to intrinsic value based on a fundamental analysis that suggests the securities should appreciate over...
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I’ve been writing to you for quite some time about the massive paradox between growth and value stocks.  The largest growth companies have become so big that they now represent the largest portion of the indices in history.  Conversely, value stocks have remained in the penalty box and are trading at very cheap valuations.  The...
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Below is an interesting article discussing value investor David Einhorn who is betting against some of the high-flying technology stocks that are trading at valuations reminiscent of the late 1990’s.  I definitely agree with his investment thesis and I’m sure that some of the stocks he is shorting are stocks like Twitter, Tesla, LinkedIn etc....
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Few articles that I have read describe the investment philosophy of T&T Capital Management (TTCM) better than the below one by the great value investor Howard Marks.  My first six or seven years in the investment industry revolved around the substantive differences between the way that the most successful investors in history have invested, and...
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The article below provides an interesting glimpse, comparing today’s Nasdaq to the bubble of the late 1990’s.  There is no doubt that conditions in the index aren’t anything near as frothy as during that period, particularly for the “old” technology stocks such as Cisco (CSCO), Microsoft (MSFT) and Intel (INTC).  Even newer stocks that are...
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The current investment climate does bring back some memories of the late 1990’s for a small group of glamour stocks.  Market participants seem willing to pay 100-250 times earnings for companies that are barely profitable and that lack substantive assets, which often can be a good indicator towards future earnings.  Tesla is probably my favorite...
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