Rarely do I see growth investors focused on portfolio valuation metrics, such as Price to Earnings and Price to Sales. Afterall, those are often thought to be more important in value investing. However, achieving the best growth for the lowest metrics is absolutely critical long term and deserves much more attention. Sky High Price to Sales Companies: $SPCX: 64.5 $SNOW: 20 $PLTR: 56.5 $DJT: 400 *Calculated using current share price divided by (latest quarters revenue multiplied by 4) I try to stay away from companies like SpaceX, Snowflake, Palantir, and DJT. I love innovation and what these companies are accomplishing, but I also recognize there is an enormous amount of data to suggest investing in a large number of companies like that leads to poor performance over time. Today, there is exceptional value in my opinion to be found in Memory, Compute, Software and more, including names like MU CRM NVDA AMD SNDK SKHY ADBE GOOGL Valuation metrics matter. https://youtu.be/hzq4KABZ0K4?si=wS7Po08rJpbIHbUs
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Nate
@hoodnate · 8d
Really helpful framework. I am newer to growth investing and this is a good reminder that the price I pay still matters.
