Category: Equities


The Day the Stock Market Became a Video Game

Years from now we’ll look back at today as the day the stock market became a video game, replete with a cast of characters and a storyline to compete with the best of them. To be sure, it didn’t happen overnight. It’s been slowly building towards gamification since the start of the pandemic. Stuck at […]

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Tesla and True Believers

Every bull market has a company that captures the hearts and minds of its investors. Today that company – more than any other – is Tesla. At a market cap of $834 billion, it recently surpassed Facebook to become the 5th largest company in the US. A year ago it had a market cap of […]

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A Clear Signal of Insanity

There’s been a lot of crazy things going on in markets lately, but this one may top them all. Last Thursday morning, Elon Musk sent out this tweet to his 41 million followers… What’s Signal? It’s a messaging app for your phone and an alternative to WhatsApp, which has been criticized recently for privacy concerns […]

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Bonds for the Long Run?

Over the last 20 years, long-term bonds have outperformed stocks (350% vs. 284%). Needless to say, this outcome will come as a surprise to many… (Note: in this post I’m using the S&P 500 Index Fund (VFINX) as the proxy for “stocks” and the Vanguard Long-Term Investment Grade Bond Fund (VWESX) as the proxy for […]

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Pandemic + Recession = Multiple Expansion?

The S&P 500’s P/E ratio has moved from 20.6 at the start of 2020 to 30.3 today, on pace for the highest year-end multiple in history. How is this possible in a year with a global pandemic and the largest economic contraction since the Great Depression? Investors are anticipating much brighter days ahead, with the […]

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245x Sales: The Most Highly Valued Large Cap Company in History?

Snowflake’s price to sales ratio just hit 245 (using TTM sales of $490 million). With a current market cap of $120 billion, this begs the question: has there ever been a company in history as large as Snowflake with a higher valuation? I don’t believe so. Back in the dot-com mania, Cisco briefly hit a […]

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IPO Fever and a Look Back at IPOs Over the Last 10 Years

2020 has become a boom year for IPOs, and it’s not over yet. In the next few weeks Airbnb (ABNB), Doordash (DASH), Wish (WISH), and Roblox (RBLX) are all expected to go public. In November, we saw the highest number of new IPO filings in the last 20 years. Why are companies rushing to cash […]

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The Top 30 Stocks Over the Last 30 Years…

Here are the top 30 stocks in the S&P 500 over the past 30 years… These companies have delivered unfathomable returns to their shareholders. They have also delivered many periods of excruciating pain for anyone able to stick with them. When thinking about big winners in the stock market, excruciating pain probably isn’t the first […]

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Every Time is Different

Studying market history is a worthy endeavor for investors. It can provide instructive parallels, much needed context, and reassurance during difficult times that “this too shall pass.” Problems arise, however, when one assumes that the range of possible outcomes in the future are limited to what has happened in the past. There is no better […]

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8 to 80 Spotlight: Google

A new series covering companies in the 8 to 80 Portfolio… 1) Why is Google an 8 to 80 Brand? “Just google it.” A phrase that has become synonymous with finding the answer to any question imaginable. Google is now estimated to control over 90% of the world’s search market, used by people of all ages. […]

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8 to 80 Spotlight: Netflix

A new series covering companies in the 8 to 80 Portfolio… 1) Why is Netflix an 8 to 80 Brand? Netflix is increasingly becoming a part of every household, and its viewers span multiple generations, from Gen Z to Boomers… It is fast becoming a global brand, with international growth outpacing US growth over the […]

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Introducing the 8 to 80 Portfolio

In an investment world that is increasingly shifting towards passive index funds and ETFs, what’s the case for owning individual stocks? For Howard Lindzon (founder partner at Compound), the answer simple: do it for profit, and do it for joy. Howard has a unique view of the investing landscape, sitting at the intersection of private […]

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Great Expectations

“Ask no questions, and you’ll be told no lies.” – Charles Dickens, Great Expectations What returns are you expecting from equities going forward? “At least 20% a year.” That was a conversation I had last week with an investor. It gives you an idea where we are in terms of sentiment. How did they arrive […]

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Snowflakes and Bubbles

Snowflake went public today. Who? Snowflake, a cloud-based data storage and analytics company. You had me at “cloud.” What’s the ticker? $SNOW. Awesome, catchy and easy to remember. Are they profitable? No. They lost $349 million in the fiscal year ending in January and $171 million in the first six months of this year. Even […]

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Are Tech Stocks Immune to Recession?

In 2000, the dot-com bubble began to burst. Tech stocks finished the year down 42%. (note: using S&P 500 technology sector ETF ($XLK) as a proxy for the tech sector.) In 2001, the recession officially began, and tech stocks finished down 23%. In 2002, the carnage finally ended, but not before another 38% decline. The […]

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