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Nadalovic's avatar

Cashflowing companies are so cheap right now, with a clear path to 2x, that it makes it hard to allocate capital to non-profitable growth companies, but if I liked $RNLX at $30, then now at $3 when NOTHING has changed negatively about the business or its prospects I should be loading up. I think that now is the time to back unprofitable growth companies that have catalysts uncoupled from a recession, and access to more capital. But there is no Buffet quote to recommend that, so it is probably the road to ruin!

I have the same sweet tooth issue. I tried switching to cereal, but that descended into putting cookies on top. So yes zero is the only solution.

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VALUE's avatar

" But there is no Buffet quote to recommend that, so it is probably the road to ruin! "

Yesterdays stock price has nothing to do with value today. Along those lines is the quote and principle. Basically it's a terrible idea to make investment decisions based on past stock price quotes, a stock dropping 50-90 percent does not make it cheap cause it can go to zero. A stock price doubling does not make it expensive.

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