The one particular breed of "value" investor I hate most are those who develop vendettas against particular "overvalued" stocks of companies that are changing the world. What bugs me is their attempt at moralizing. It is a crusade to prevent investors from being ripped of by such "charlatans" as Bezos, or the Priceline founder, etc who are among the greatest geniuses of retail and business of all time, perhaps the greatest in Bezos' case. Or it is the "Tesla bears.' Fine. Apologies to those here who hate the company. Yet. It's an awesome product.

If in the process of a leap in technology, better things, a few speculators get burned, so be it. Why not let speculators fund advanced research on business concepts, technologies, etc. Overvaluation is a GOOD thing but for naked fraud, and a tremendous number of those phonies are offset by one Bezos from a "good for society" prospective.

The next great "fraud" of an overvalued company with an amazing product, great customer satisfaction, etc, that the usual bears hate–having studied the "accounting metrics" till their poindexter heads are nearly exploding–I resolve to go long. Reasonable odds they will be crushed given I can only lose 100% yet might gain 20,000%.





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1 Comment so far

  1. anand on September 12, 2016 11:38 am

    interesting article and agree with general thrust. I think a lot of the motivation for bashing high flying growth stocks is plain jealousy and frustration at missing out themselves .. well that’s the reason I’ve bashed various things anyway ;)

    on the morality of letting investors pay for research and innovation, that’s fine as long as money is going to the right place in order to further human progress and isn’t instead being siphoned off by a delusional and / or greedy CEO to fill their own pockets and bolster their own ego. in the case of tesla, I suspect its a case of the latter unfortunately and perhaps the 100s of millions of cash being burnt every year could be used by others in the space who are being crowded out.


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