This is a good thought provoking post. I'm going to take some more time to think about it, especially in the context of my current portfolios. Valuation does matter but it's worth considering their different circumstances. MSFT has a quasi-monopoly on a segment of enterprise software that needed a non-idiot CEO to evolve it with technolo…
This is a good thought provoking post. I'm going to take some more time to think about it, especially in the context of my current portfolios. Valuation does matter but it's worth considering their different circumstances. MSFT has a quasi-monopoly on a segment of enterprise software that needed a non-idiot CEO to evolve it with technology (cloud, mobile, gaming) and that's been successful enough to get a re-rating. NVDA developed a leadership position in a technology that was going to take over a big portion of mainstream computing thanks to gaming, crypto and other demanding applications. The wave just got bigger and they were right there. Maybe TRIP is like MSFT. Questions remain on the others for me because I wonder about switching costs and their ability to compete longer term. So far DBX has failed to come up with anything new that matters. They have all been duds. I think they might be better off figuring out an M&A strategy and executing that. I'm going to try and figure out a "lens" using your ideas here that I can use to view stocks in the portfolio and those being considered. Here's to wealth building once this market rout ends.
This is a good thought provoking post. I'm going to take some more time to think about it, especially in the context of my current portfolios. Valuation does matter but it's worth considering their different circumstances. MSFT has a quasi-monopoly on a segment of enterprise software that needed a non-idiot CEO to evolve it with technology (cloud, mobile, gaming) and that's been successful enough to get a re-rating. NVDA developed a leadership position in a technology that was going to take over a big portion of mainstream computing thanks to gaming, crypto and other demanding applications. The wave just got bigger and they were right there. Maybe TRIP is like MSFT. Questions remain on the others for me because I wonder about switching costs and their ability to compete longer term. So far DBX has failed to come up with anything new that matters. They have all been duds. I think they might be better off figuring out an M&A strategy and executing that. I'm going to try and figure out a "lens" using your ideas here that I can use to view stocks in the portfolio and those being considered. Here's to wealth building once this market rout ends.