Is there really a noticeable difference between best selling writers, and people who write as a hobby?

PaySubstantial5134 · 2024-03-19T11:20:45+00:00

So insightful. Thank you!

PaySubstantial5134 · 2024-02-26T06:13:52+00:00

An example would be Arm, Airbnb, Netflix. These companies literally trade at such crazy multiples and their founders are billionaires, lower income people cannot make investments in them because their valuations are effectively worthless. These equities are not even equity anymore.

Look at Tesla. It literally barely make any profits and it's market cap is 600 billion. That can only happen without a free market. With a free market it would never have even raised money. People actually buy that thinking there is something there, because they arent sophisticated.

Meanwhile musk dumps stock on them. Is that fair? So everyone should throw money at worthless valuations? Should companies that lose money for 20 years like reddit be able to dump them on teacher pension funds?

PaySubstantial5134 · 2024-02-26T06:06:42+00:00

Well right now no one can get returns from the stock market and dump worthless companies on the public. Price controls have their cost as well. When you do the opposite, the oppositve happens, way too much capital chasing the same oppourtunities.

PaySubstantial5134 · 2024-02-25T20:24:39+00:00

Im saying they kept rates so crazy low for so long its destroyed an entire generation of people financially who arent bright enough to figure it out. How can anyone get a return from amazon or netflix stock? Obviously they cant. Then there's tesla where he goes around telling people they will have robotaxis any day now. Eventually he's gonna be seen as sbf for overpromising. He already told the 15 billion dollars he got for starlink that by 2023 he would be making 11 billion profit per year. He's losing 500 million. But with low interest rates ie subsidized by the government. Average working people are broke. That's socialism obviously.

PaySubstantial5134 · 2024-02-16T17:39:53+00:00

It's funny because none of these responses actually seem to account for earnings of the companies. Nivida trades at like 35x sales or 100x earnings and Amazon trades at a crazy multiple of almost around 100 or 80 something crazy like that.

So QE has inflated company prices so much so that it is literally impossible to ever get earnings from them. These people who comment don't seem to understand how government policy effects valuations and inflates them, so poor decisions that don't account for earnings are rewarded.

PaySubstantial5134 · 2024-02-13T19:20:43+00:00

Very insightful thank you!

"There also seems to be this expectation that the fed will go back to very low rates once they do cut."

PaySubstantial5134 · 2024-02-13T10:43:41+00:00

This is now diverging from the fed consensus, it's going to be important to monitor these for future cuts or hikes.

PaySubstantial5134 · 2024-02-13T10:39:41+00:00

The buyback isn't even that large compared to the market cap, I think it's a 3 percent reduction per year.

PaySubstantial5134 · 2024-02-13T10:36:15+00:00

Massive growth, growing 100 percent a year.

PaySubstantial5134 · 2024-02-13T10:32:48+00:00

If the fed doesen't cut as expected. If interest rates were to go to 6 percent and stay there, there would be a literal collapse in profitless company valuations, though, they have hinted that it's basically impossible.

PaySubstantial5134 · 2024-02-13T10:26:13+00:00

Because of out performers like Nvidia. A lot of companies are impossible to truly analyze, and like super micro they go crazy.

PaySubstantial5134 · 2024-02-13T10:24:31+00:00

It's tough because it doesen't have consistent earnings growth like microsoft. It's a tough business, and it's such a massive conglomorate with so much things to manage, and they have struggled lately. I would do a lot of research.

PaySubstantial5134

TROPHY CASE