This is more than enough to start on SPLK to hold long👌 The second question is WQJ’s “will you have confidence to purchase $50k worth and hold for 5 to 10 years?”
WQJ limit is mainly stress testing concept and also to earn considerable return on investment.
If answer is yes, good to go
Third is benchmark question: if the same 50k is invested in AMZN or AAPL instead of SPLK, will it give you better return?
If the answer is “NO”, worth buying SPLK
If “YES”, how much and is it worth considering diversification to reduce risk?
Diversification For example; During the current volatility , TSLA helped me with positive side while AAPL was way below pulling me down. Even though they are both tech side, it is worth holding both.
Even though you know all these, I just created these types of questions for information purpose.
NVDA is presently at its normal range around $160. They are like FB now. NO NVDA until we see one or two quarter results.
AMZN has potential to grow, but for now, IMO, AAPL is far better at low price.
The big difference between AMZN and AAPL are in profit margin (AAPL>AMZN) and EPS Growth (AMZN > AAPL).
Growing interest rate affects Amazon sellers and Growth Tariff issue affects them that results into lower growth rate (while maintaining Profit Margin) for AMZN.
Because of Berkshire, they understand and analyze (drill down thoroughly) better than junk analysts. The price is lower than Berkshire and soon be lowest in the history of that company STNE.
Just before results, I sold 75% of TEVA (from 35% to now 8.8%) to get into AAPL and STNE.
TDOC is my favorite, like your SPLK, soon to be profit making, but slow. I hold it from $40 onwards, keep adding them.
TDOC qualifies for high risk, loss making. So far slow, but eventually go high. They are down 29% from peak even after good growing results. There are chances this 4.3B may become 43B in 10 years. When they produce profit, price is likely go exponentially, mostly down turn resistance medical service field, growing world-wide.
For 10x, sure, look at STNE - still worth buying/adding. I will hold this little longer one or two more year for growth, then may reduce depending on stability like the way I did for TEVA, keeping the profit hold for ever.
The thing that makes this company compelling to investors and customers is revenue growth on the one hand and continuous technological innovation on the other. This dual need puts the firm on a treadmill of sorts, where the costs of attracting customers at a rapid rate is continuous innovation in product offerings (R&D expense) and a continuous increase in headcount (increasing sales force and G&A). In my view, if the company rests on its laurels, revenue will soon slow, and the game will end. Thus, in my view, there is a high degree of probability that the firm won’t achieve a “tipping point” of profitability.
Above is the reason why I didn’t invest in AMZN in early days. Of course I was wrong. Investors are willing to invest and even pay a premium for such business strategy.
That law is that the more you pay for a stream of future cash flows, the lower will be your long term return.
Common sense. However, future cash flows are estimates.
I think investors should avoid the name until we have some evidence of earnings.
When it is clear, it is also possibly missing the boat.
Before earning, author felt EV/R is too high relative to peers,