Seriously, I need to vent a bit.
I considered some companies out there to be overvalued last year, but they’ve doubled, tripled, or even grew ten-fold in value in the past year. Why are they trading at 100x their top line?! Some companies are burning money like never before, have a smaller revenue than before, and are firing people left and right, but they still grew 700%. wtf. Take SPWR as an example, or LMND. I walk past the LMND offices every day, I met Shai Wininger in person. I’m not going to rant about that specific company, but the market is disconnected from reality. LMND has 80M in revenue, burns money, doesn’t grow, but tripled in value in 6 months. Why??
Half of the stock charts that I’m looking at seem normal and then in 2020 they shoot up like never before. You can let a 5 year old pick any 5 stocks and it would have netted you a 30% return on average, easy!
What’s happening? This is unprecedented.
I need someone to prove me wrong, or at least provide me with some rationale as to what is happening.
With all of that said, I’m still investing big on margin, but I’m strongly considering changing my portfolio to things that I believe are more solid, and jump out of the 10x bandwagons. I made insane gains last year, but this party can’t go on forever and it needs to come down to earth.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.