It’s nice to see others who share their journey on monthly basis (still) not many of us left! Subscribed and will follow, we will see better days (I hope 😅)
Don't you think it's time to consider reasonable valuations when buying quality companies for better returns in high growth investing? Would like to hear your thoughts.
IMHO the next 5-10yrs will be tougher and more sensible to valuations than previous years.
Sure. How would you define "reasonable valuations"? What metric do you find best? Wouldn't we already have more reasonable valuations since most growth companies have been rerated so strongly already?
I'm not tied to favoring business execution over valuation. I've just never been able to find anything that turns the concept of reasonable valuation into an actionable process that helps me manage our portfolio. Would you mind sharing how you think about it?
I have been experimenting with EV/GP and EV/GP/FWD Growth....both these metrics have guided my buys this year. I find them to be much more superior than any other valuation metrics out there for growth companies...even better than PE or PS or rule of 40 or rule of 80 or anything else.
Interesting that you bought Transmedics. Color me intrigued. I will need to revisit them to check how they are doing after last years fintwit pump and dump. Hope you are well. Cheers!
I agree on the pump and dump. TMDX definitely got caught up in the hoopla at that time. If I remember right, the first time I looked it had posted like $5M in revenue with $25M in losses at a roughly $1B market cap. No thanks.
Now it's a more established business with much better trends. TMDX is still our riskiest holding (hence the smallest size), but it deserves a ton of credit for turning last year's hype into considerable revenue growth this year. I was impressed enough with its recent report and management's confidence to grab a starter position. It's on a short leash though and will 100% need to execute during the second half of the year.
It’s nice to see others who share their journey on monthly basis (still) not many of us left! Subscribed and will follow, we will see better days (I hope 😅)
Thanks for sharing.
Don't you think it's time to consider reasonable valuations when buying quality companies for better returns in high growth investing? Would like to hear your thoughts.
IMHO the next 5-10yrs will be tougher and more sensible to valuations than previous years.
Sure. How would you define "reasonable valuations"? What metric do you find best? Wouldn't we already have more reasonable valuations since most growth companies have been rerated so strongly already?
I'm not tied to favoring business execution over valuation. I've just never been able to find anything that turns the concept of reasonable valuation into an actionable process that helps me manage our portfolio. Would you mind sharing how you think about it?
I have been experimenting with EV/GP and EV/GP/FWD Growth....both these metrics have guided my buys this year. I find them to be much more superior than any other valuation metrics out there for growth companies...even better than PE or PS or rule of 40 or rule of 80 or anything else.
Interesting that you bought Transmedics. Color me intrigued. I will need to revisit them to check how they are doing after last years fintwit pump and dump. Hope you are well. Cheers!
We are well, and thanks.
I agree on the pump and dump. TMDX definitely got caught up in the hoopla at that time. If I remember right, the first time I looked it had posted like $5M in revenue with $25M in losses at a roughly $1B market cap. No thanks.
Now it's a more established business with much better trends. TMDX is still our riskiest holding (hence the smallest size), but it deserves a ton of credit for turning last year's hype into considerable revenue growth this year. I was impressed enough with its recent report and management's confidence to grab a starter position. It's on a short leash though and will 100% need to execute during the second half of the year.
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