Small Stocks are Roller Coasters
“The valuation of every company is simply a number from today multiplied by a story about tomorrow.” - Morgan Housel
5 min read
“The valuation of every company is simply a number from today multiplied by a story about tomorrow.” - Morgan Housel
When you take care of today, tomorrow takes care of itself.
Steinhardt was a fundamental stock picker, but he was short-term. He was also a top-down macro trader. He also shorted. He was so different. He didn’t fit in a box.
Customer delight cannot be measured, but is just as important as the things that are measured.
Every so often the market throws us a gut punch we didn't see coming. It hits us so hard it could almost bring Superman to his knees.
Every investor has a moment where they have to decide: trust the consensus, or throw the spear.
It’s extremely difficult to capture the right tail of monster winners because they are constantly evolving.
In bull markets and flat markets, there’s no need for a parachute—you’re still on the plane, climbing higher, cruising effortlessly. But sooner or later, Mr. Market kicks you out. And that’s when reality hits.
To find a 10-bagger first find a stock that can double in three years with conservative fundamental assumptions and no multiple expansion.
The best stock ideas are hated or unknown in the beginning and loved in the end.
There are a bunch of small stocks that will 10x over the next five years that are waiting to be found. Institutions can’t buy them. Only you can.
Stock picking is an individual sport so the winning streaks are intoxicating and the losing streaks excruciating. It's how we deal with both extremes that sets us up for long-term success.