I have obviously been distracted for a few days, but the markets never sleep.
The best public market growth ideas show themselves during corrections, panics and crashes.
Seeing we just had a small panic and crash and that people were crashing Fidelity and TD Ameritrade websites trying to sell stocks, it is a great time to look for leadership. The stocks that will be the next big winners will start to break to new highs despite the onslaught of selling.
I was not in the mood to buy any stocks myself, but I did take a small starter position in $LULU because of the move to all-time highs (despite the CEO resigning). They were not alone. Other growth names on the all-time high list…
Match.com (on my 8-80 list and I have been long)
Zendesk (subscribers to my Peloton have been long for a while)
Even Snapchat ($SNAP) caught most people by surprise today (not me) and added $9 billion to it’s market capitalization by beating Wall Street estimates (whatever that means).
Tomorrow morning Twitter has their quarterly ‘lack of’ earnings report and I think they will have a few positive surprises (I have been long since $20 with my Peloton subscribers).
As for ‘growth is good’ I give you Andy Kessler:
I have a confession: The day I started on Wall Street, my boss handed me a yellowing copy of Benjamin Graham and David Dodd’s 1934 book, “Security Analysis.” He told me Warren Buffett swears by it! I read maybe three pages before the section on valuing railroad bonds put me to sleep. I still have the book, which is now a doorstop. What I quickly realized was that only three things matter when investing in technology: growth, growth and growth.
I’m not anti Graham, I am just for Andy’s way of thinking when it comes to investing in stocks.
If you read me you know it is not hard to screen for the next big winners, you just track the all-time high list.
Money always flows into winners until they stop being winners. It’s not always civil, it often lacks soul, but it just is.
Also published on Medium.