Respecting
@stillers request we start a new thread to discuss NVDA etc here goes
My favorite Dot.com quote from Scott McNeely CEO of SUN
"At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. That assumes I can get that by my shareholders. That assumes I have zero cost of goods sold, which is very hard for a computer company. That assumes zero expenses, which is really hard with 39,000 employees. That assumes I pay no taxes, which is very hard. And that assumes you pay no taxes on your dividends, which is kind of illegal. And that assumes with zero R&D for the next 10 years, I can maintain the current revenue run rate. Now, having done that, would any of you like to buy my stock at $64? Do you realize how ridiculous those basic assumptions are? You don’t need any transparency. You don’t need any footnotes. What were you thinking?"
NVDA Price to Revenue is three or four times SUNW then
This quote is from the Felder report
https://thefelderreport.com/2017/10/26/what-were-you-thinking/I would post the stock chart image if I knew how. It is in the link. ( at 72 I must admit I am a bit technologically challenged)
Bottom line: "a chart of Sun Micro from 1996 to 2006. It started around $5 ran up to that $64 Scott mentions and then fell right back to $5. And you would think this might serve as a cautionary tale for investors today."
Comments
Look at where Intel is today compared to where it was a few years ago.
Interesting that Vinod Khosla recruited 28-yr old Scott to Sun Micro in 1982, and VK still remains very active in venture-capital.
https://en.wikipedia.org/wiki/Scott_McNealy
@Yogibearbull
Remind me again how to post images, if you have a minute. Thanks for wiki link. I had forgotten what a right winger he is. Why does that seem to go hand in hand with techno billionaires?
@sma3, copy (with right-click) the image-address (but not other URLs) & use the MFO Image-Tool (3rd from right) to post.
If an image doesn't have linkable address (e.g. screenshots or other pics on your PC), use free image-hosting sites such as Imgbb.com, etc, to establish image-link, and then follow the above steps.
Practice 1-2 times & you will never forget it.
Did it work?
edit: Guess not.
Image ADDRESS (should have .jpg or .png ending) https://images.inc.com/uploaded_files/image/1920x1080/getty_133970892_157811.jpg
Or is this financial system which is twice as large as the economy too big to fail? No politician will allow a large draw down on their watch because we'd have an epic depression...think of the pension funds that would collapse etc. That and now I'm being serious is the difference now vs back in the sun micro hey days....
So are we all just fools not to slide all the chips in?
By that meaning invest in NVDA, CRWD, MDB. And some cash to buy some smokes and booze...
Who knows??
An ETF WSKY let you do both but it was shuttered. Now VICE is available and apparently holds NVDA too!
BTW, while I don't own NVDA or any of the MAG 7 directly other than in various funds, I did pick up AVGO in spring of 2020, and it's now my 2nd largest holding....
One of my mantras for buying so many of them when they were irrationally punished during 2021-22 period. My average price for NVDA is $122. I was lucky to buy NFLX around $170. I was not bold enough to buy Meta below $100, but average price is not bad at $175.
“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”
viciousbeautiful cycle!