100 baggers/ Growth Stocks

True, no doubt. I always trade with that idea, No risk holding, but trying to hold some dividend payers, but at certain point I take profits when Risk is very high. Trading, with the help of my algorithm, no brainer for me, keep my account always green!

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Since S&P bottomed on Oct 12, 2022. My top three stocks, NVDA SHOP RBLX, outperform S&P and QQQ.

Ditto for YTD…

Suddenly, retail investors realize that. Nobody care in 2020-2021.

How to identify potential 100 baggers :slight_smile:

SMH

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In recession times, never bet on week company, I.e., loss making companies or high debt companies, as they can file overnight bankruptcy like SVB!

Better to stay with cash rich companies that are corrected heavily.

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Case of doing what he says not do what he did :face_with_hand_over_mouth:

IMO, “No fight with FED” is right solution for common retail investors.

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You really need to take some accounting and finance classes.

  1. Companies don’t fail because of profit and loss. They fail because of cash flow. Their cash flow from operations is positive. They don’t need to raise capital.

  2. Their debt is less than their current assets, so they have no net debt.

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I respectfully disagree on these. These are false principles of finances on speculative growth companies.

During the bullish times, Cash Flow allows the company to run the show, make progress and eventually debt free and net income positive.

During bearish times,

  1. Cost of borrowing increases
  2. Sales decreases (Demand killed)
  3. Depreciation, taxes are liabilities (must pay when company closed/sold)
  4. Most commercial term loans are variable rate, when interest rate changes, their future is like SVB.

Fortunately, I went to the brink of finance collapse in my past real estate as well as stocks and then recovered. Those taught me hard lessions what is safe investment and what is risky investments.

Cash flow positive does not mean sound or solid company when net income is not positive, esp for companies

BTW: I worked decades in financial applications software, esp revenue, order booking and general ledgers.

No need to take any further finance classes !

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Wow. I’m just going to sit back and laugh.

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Okay, you can relax. Here is the personal scenario what I really faced and then I stop on this topic.

After 2008-2011 multiple SFH purchases in bay area (my minimum purchase price was 1M), I was holding 5 SFHs in bay area with $27000 cash flow out with very slight positive cash flow in (Appx $500).

I was able to withstand 8-9 years bullish period, but even the predatory lawsuit, appx year 2020, eventually took away $50000 from me! That was the only period I was having negative cash flow 6 months until the case is compromised and insurance compensated a portion of it.

All my profit was in SFH appreciation, but cash flow was just equal. Then I realized what is the use of holding many appreciated assets (as they can fluctuate in values and no use until it is realized).

Within 2 years, sold all my real estates and paid off all mortgages. Had I kept those SFH, my cash flow will be negative as well as my appreciation would have been negative.

I learnt a good lesson from lawsuit and how risky I was holding big assets.

When bearish period, cost of borrowing increases and sales decreases, investor must stress test each company financials to see whether they survive or not. We will see companies suddenly close over night and we hear all the news why they are closed.

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Jill, what can you share us about the learnings from lawsuit? how to avoid? what insurers to use? what else to know?

Selling in 2020 is a bad timing. If you had held on for few more years, then you would have made much more on appreciation. Hindsight 20/20. Not sure how much your appreciation was and how much you paid in commissions + uncle sam…

May be, but hard to time the market, but I started selling 2020 and the last escrow closing was May 21, 2021.

I cannot talk about the details, but high level do not go to any court, better to compromise at the start itself to avoid all the cost associated with it.

The lawyer fees were $450/hour (junior lawyers $300/hr) and he invoiced every email I send it to him at $25/email basis (horrible) at that time!

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I’m not sure how that at all relates to the discussion about growth companies. It does explain why you’re such a doomer though.

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I totally understand that you do not understand the issue. Time will teach you in due course, wait until then.

Good Luck !

Screenshot 2023-05-04 at 8.41.11 AM

Obviously I own both :slight_smile:

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CG is more often right than wrong.

Joe argues that innovation is not necessary for excellent stock return. Auntie Cathy is wrong.