The market’s down but there’s some great opportunities out there!
Hi all 👋
Been a pretty bad week for equities (along with almost everything else) this week. The $NSDQ100 is down 5%, the $SPX500 is down 2.3%, and pretty much all our holdings have been hit hard. Just a few examples below:
🎯 $SOFI (SoFi Technologies Inc) had what I, and many others, think is the best quarter in the company’s history, and yet the stock is down 28% in the past month.
🎯 $FOUR (Shift4 Payments Inc) down 33% in the past 6 months despite, fairly solid top-line growth and the upcoming world cup in the US which should be a short term boost for its business. The CEO did leave a few months ago to become the head of NASA but remains the largest shareholder. The company now trades at virtually 1X sales, 2X enterprise value and just 11X earnings. Q4 earnings are out on the 17th Feb.
🎯 $SHOP (Shopify Inc.) (up 3000% since our initial investment in 2017) is another company down 33% in the past month. I kind of understand the selloff in software but so many of these companies are more than just software and Shopify is one example. Earnings are out on the 11th and all though the valuation is steep (it always has been for this company) there’s nothing out that justifies a selloff of this magnitude imo.
The causes of these things are always super overdetermined imho and after it happens everyone comes out with ideas about why it’s happening and why it was always clear what would happen (just see the runup in silver’s price in January due to “demand from AI hardware & distrust in global monetary regimes” and then crash over the past week for example, presumably demand and distrust didn’t just disappear in the past week).
It’s a fine line between becoming too nihilistic about things without just accepting the “mainstream” reasoning behind everything. Who knows what the reasons for the price rises/falls actually are but I think they’re likely far too complicated to understand completely and it’s best (and fast easier) to just focus on the underlying businesses rather than worry about the macro.
The next 2 weeks will likely be volatile as well with many companies from our portfolio reporting earnings, but the recent fall hasn’t given me any cause for concern to be honest. I’ve used it as an opportunity to add to our positions in FOUR and SOFI.
From 2018 - 2025, I had one of the highest returns of all Popular Investors - etoro.tw/4b3pl7o
Check out my profile to learn more about my investment strategy and if you have any questions, feel free to leave a comment below. Thanks for taking the time to read this! 😀
Harry
Disclaimer: This content is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Nothing here should be considered a recommendation to buy, sell, or hold any asset. Always do your own research and consider your personal circumstances before making financial decisions.... Show More
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