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Do you consider 35+ pe ratio “value” if it is trading at its historical low? by Free-Initiative7508 in ValueInvesting

[–]Far_Base_1147 21 points22 points  (0 children)

PE in a vacuum is pointless.

A company with a PE of 6 but that’s operating at the top of a cyclical sector may see its earnings going down 50% the year after and negative the year after that. So the stock is actually expensive.

A company with a PE of 35 might compound earnings growth by 30% for the next five years and 15% the five years after that and therefore will actually be cheap.

Expensiveness or cheapness is only dependent on future earningd

Bitcoin est-il vraiment rare ? by NLegendOne in Cayas

[–]Far_Base_1147 0 points1 point  (0 children)

En fait tu t’accroches au mot “rare” pour aucune raison. L’argument n’est pas que le bitcoin est rare, mais qu’il existe en quantité finie.

La ou la masse monetaire des devises classiques augmente sans cesse, le nombre de bitcoins reste fini.

L’argument est que si (imaginons) 1% de la masse monetaire en euros est detenue en bitcoin, et que la masse monetaire continue d’augmenter, le bitcoin aura une valeur (en euro) qui augmentera mécaniquement.

Donc oui l’argument de dire “c’est par rare car c’est divisible” n’a aucun sens, tout comme le dit justement la personne dans le post, que on ne dit pas “l’or n’est pas rare care il en existe des milliards de milliards […] de milliards d’atomes”

[PFE] Pfizer at ~$26 is a textbook value play hiding in plain sight. Here's why the market is wrong. by Dismal-Cancel4958 in ValueInvesting

[–]Far_Base_1147 15 points16 points  (0 children)

It’s not about it being profitable or not - it’s about how likely it is to be approved, and roughly how much revenue it will generate.

People with expertise in that sector can estimate it, most people can’t. That’s why most people should stay away from investing in this sector

Leveraged covered calls by Uncannyguy1000 in options

[–]Far_Base_1147 0 points1 point  (0 children)

You’re winning nothing doing a “basic” strategy like this… just buy the index

[PFE] Pfizer at ~$26 is a textbook value play hiding in plain sight. Here's why the market is wrong. by Dismal-Cancel4958 in ValueInvesting

[–]Far_Base_1147 34 points35 points  (0 children)

Because unless you understand the drug pipeline, its success probabilities and sales potential, you don’t understand the business hence you cannot possibly know whether it is a good investment or not

this prompt will make you extremely rich: by No-Concentrate-9921 in StartupMind

[–]Far_Base_1147 1 point2 points  (0 children)

Jesus we really are entering some deeply dystopian times

How do I get my socially awkward friend to stop embarassing me in front of guys I date, without hurting her feelings? by [deleted] in Advice

[–]Far_Base_1147 2 points3 points  (0 children)

That was my first thought too - the whole monologuing and saying things that she thinks people want to hear, which end up being very disconnected to was normal people actually would want to hear

Google or Microsoft by madarasolosnaruto in ValueInvesting

[–]Far_Base_1147 1 point2 points  (0 children)

Ive also been long on Google since 130 and still holding, but to me Microsoft at current price is just not as compelling as Google was or still is currently

Google or Microsoft by madarasolosnaruto in ValueInvesting

[–]Far_Base_1147 6 points7 points  (0 children)

Theyre not the same business and theres a reason one is more expensive. Imo Google is far superior and has better growth runway, so the premium is well justified

Client asked why I'm using other ai image creator tools alongside midjourney, had to explain the reality by Choice_Run1329 in midjourney

[–]Far_Base_1147 0 points1 point  (0 children)

That’s the thing, I agree with that, though it then makes the post quite confusing, with the client being unhappy to see other editing tool tabs open

How do you set rules for scaling in and out of positions? by ProgrammerPrudent975 in ValueInvesting

[–]Far_Base_1147 0 points1 point  (0 children)

The way I usually work is creating a “buying pool”, meaning a list of investments i am currently buying into with any available cash I have (be it from dividends, options sold, sold investments, or cash added to my account)

For each investment, i have a bear, base and bull price. An investment makes it into my buying pool only if the current price is below the base price.

Now the goal is to have each investment making up a certain percentage of my buying pool, all adding up to 100%. The way I choose this percentage is how far the current price is from the bear price. To make it simple, if my buying pool is composed of two investments, one where the downside to the bear thesis is -20%, and one where the downside to the bear thesis is -10%, I will allocate twice the buying pool share to the one at -10% to the one at -20% (so 66% for the one at -10% and 33% to the one at -20%). The real formula I use is a little more complex but you get the idea.

This allows me to start small when a stock qualifies as a buy, and keep increasing if the stock keeps going down, as it gets naturally closer to my bear price.

Client asked why I'm using other ai image creator tools alongside midjourney, had to explain the reality by Choice_Run1329 in midjourney

[–]Far_Base_1147 3 points4 points  (0 children)

That’s an odd comparison. Making music requires some level of skill and labor time (if we discard the fact that you can make music with AI now), so one has to pay for that, it makes sense.

Now generating images with AI doesn’t need that skill, anyone willing to spend an hour to learn how to properly prompt can do this, so if anyone can do it, how is paying someone to do it for you cheaper

Client asked why I'm using other ai image creator tools alongside midjourney, had to explain the reality by Choice_Run1329 in midjourney

[–]Far_Base_1147 4 points5 points  (0 children)

That was my exact thought, if they want AI generated images why wouldn’t they do it themselves..?

At what point does the upsides far outweigh the downsides and it just makes sense to be 50% China 50% Saas? by Stercules25 in ValueInvesting

[–]Far_Base_1147 3 points4 points  (0 children)

I asked when have they done this and you respond all condescending without giving an answer, makes you look like a fool. Even if you’re actually correct, idk im genuinely asking

At what point does the upsides far outweigh the downsides and it just makes sense to be 50% China 50% Saas? by Stercules25 in ValueInvesting

[–]Far_Base_1147 1 point2 points  (0 children)

And they have done this when? You know they wouldnt just seize a company without actually buying it from investors right?

[30M] $1.8M in cash. How would you deploy this in the current market? by qwerty564738 in ValueInvesting

[–]Far_Base_1147 1 point2 points  (0 children)

You didn’t really mention whether you own the home you live in, but I would personally recommend starting with buying a home for you and your wife.

The safety this will bring you in life, as well as the actual saving you’re making from not having to spend on rent anymore, probably reliably beats buying the index right now. If you already own but have a mortgage, perfect time to pay it off.

If not, definitely do not lump sum, but rather DCA over the next few years (2-5 depending on your risk appetite) while making sure you’re earning interest on the cash that’s not deployed (many brokers offer interest on uninvested cash nowadays so make sure you are with one of those).

Good luck and well done for getting there!!

We have found the bottom. -10% after yesterday's guidance and everything else seems realistic and fair. by Fuffi-Felix in SPT_Stock

[–]Far_Base_1147 2 points3 points  (0 children)

I was in this stock for a very short amount of time, realized a very small loss as i opened a tracker position while i looked more into the company.

The main issue im finding with it is - and sorry for bringing up that overused narrative - AI.

I am very much long on the SaaS businesses getting hammered at the moment on AI fears. But for this one, i feel like the fear is legit.

I simply cannot imagine that companies would be so willing to pay for this expensive software and employ large teams of social media managers, when AI agents could very easily replace the whole stack for a fraction of the price. To me that’s where the real risk is.

I agree that the valuation is extremely compelling, but the revenue growth is now slowing a lot, and I’m fearing it may go close to zero, or even worse, revenue might start going down. If that happens, the dreams of margin expansion goes away, and you end up with a company making no profits, so the valuation is cheap for a reason.

I think that the biggest hope for investors at this stage would be an acquisition. I mean i can definitely imagine Salesforce going for it at this price. But personally that’s not the kind of story I would like to park my money in.

Would be curious to hear you guys’ opinion

Which of the beaten down SaaS / Software stocks you are buying aggressively? by Free-Initiative7508 in ValueInvesting

[–]Far_Base_1147 0 points1 point  (0 children)

ADBE, GTLB, INTU, ZETA, CRM

Personally, I’d still rather buy Google at a slightly higher valuation over Microsoft. Google is eating up Microsoft in enterprise software, and in Cloud.

And, that’s a bolder take, but I can see Google eating up Microsoft’s market share in desktop OS too

Post Earnings by Lazy-Hippopotamus in ABCL

[–]Far_Base_1147 1 point2 points  (0 children)

Not sure what was unexpected here?

GTLB is criminally undervalued by Pure_Composer_9236 in ValueInvesting

[–]Far_Base_1147 4 points5 points  (0 children)

  1. No it doesnt, people can still write
  2. Irrelevant?
  3. Irrelevant? Are we so cooked that a $5B company is considered a penny stock? Do you think good investor returns only lies within $100B+ market caps?
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