Musings

Price is important in investing. I think it is important in two occasions – the day you buy and the day you sell. Between those two days a lot can happen. That’s why it’s important to remeber that a stock is a share of a company in an ongoing enterprise (hopefully)

I am trying to stop having debates with myself over the vale of an investment, is now a good time to get in based upon static investment metrics.

The reality of the world we live in is that there is a shortage of good growth opportunites. Broad based GDP is struggling to grow at 3%, inflation can’t get to 2%. So how much are you willing to pay for a company growing well, with good gross margins and a good balance sheet?

I don’t know about broad based valuations metrics, so I am trying to own companies in growing industries- cloud computing, diabetes treatments, genomics, cyber security, enterprise software, entertainment, search, gaming etc.

Maybe we overpay for them today based upon their valuation but I am more interested in how much someone will pay in the future for a company that is bigger and better.

Bye for now.