No. of Recommendations: 2
OK.....for fun and without looking guess what stocks these were with the top six returns as recomended by the RB.....NO CHEATING.....dont look it up!:

3,585% Return from 2005
2,382% Rertun from 2009
1,883% return from 2004
2,112% Return from 2009
1,955% Return from 2006
935% Return from 2012

BTW....SHOP is at 654% from 2016.

10 multiples took at least 7 years to materialize and these were rare events in the total landscape of all recommendations.

But...RB done good!

What single stock do you own that you believe will unseat these top 6?
Print the post Back To Top
No. of Recommendations: 0
Just going to throw out some names and not put them to the exact year bought:

Priceline
Amazon
ISRG

That’s a few I can guess anyway.

AJ
Print the post Back To Top
No. of Recommendations: 0
I'm guessing NFLX is in there, maybe ABMD?

Rob
Print the post Back To Top
No. of Recommendations: 0
NVDA is at least one of those calls
Print the post Back To Top
No. of Recommendations: 0
NVDA was never recommend.

IPG photonics was one.
Print the post Back To Top
No. of Recommendations: 0
And bidu
Print the post Back To Top
No. of Recommendations: 5
Results:

ISRG - The king
MELI
CRM
BIDU
NTES
VRTX

What do we see as common thread between these....all pretty much different industries?

Only two had a P/S of > 20 in its entire history....BIDU and VRTX......the others have averaged 6-12.

The main commonality is that other than NTES, the NPI was all over these stocks in those years....all over them......did any of you hold them for 2000%-3000% gains?
Print the post Back To Top
No. of Recommendations: 1
only two had a p/s ratio of > 20 at one point. That's 1/3 of the stocks. Compare that to the percentage of stocks in the broad market with P/S that high. Seems like buying highly valued stocks is a great strategy!
Print the post Back To Top
No. of Recommendations: 4
I was fortunate to be on the ISRG and VRTX wagon and still hold them both today. Rather than looking at price to sales though, what do these have in common?

Disruption in a totally new market - when VRTX was recommended it was a Hep biothech and ditched that for the current CF market, which they completely own today. We know the ISRG story - same thing. With ISRG, I was fortunate enough to know a highly respected surgeon who said it will be huge, but no one knew if they could execute.

On downside, I was an early adopter for CRM at a tech company back in the day, and although used it every day, never invested as it was always expensive, etc. as we all discuss with some of these high fliers.

So when looking at a new thing, massive TAM, etc. and no perceived competition, I think those attributes lead to MDB and don't think AWS is a competitor for what MDB is going after.

Wishing I had more money back in the day when I did invest in them.

Sox
Print the post Back To Top
No. of Recommendations: 0
only two had a p/s ratio of > 20 at one point. That's 1/3 of the stocks. Compare that to the percentage of stocks in the broad market with P/S that high. Seems like buying highly valued stocks is a great strategy!

Are we going down this road again??

I have presented the data on high P/S stocks.....the odds are against you.
Print the post Back To Top
No. of Recommendations: 0
Worked well for me ;)

But in the end there is another way to look at it as well, what would the world be like if the company did not exist?

Nvidia - someone would have to invent something. Perhaps AMD might, but as we can see even AMD cannot keep up despite Nvidia doing the inventing for them.

Zscaler - there is such an industry reliance on the upgrade cycle with appliances it is doubtful any of the existing players would have done what Zscaler did, and someone else would have needed to do so. To date, despite the obviousness of what Zscaler did, no one has.

Mongo - As we have seen, lots of pieces out there of different database sorts, but in the end no one else has a modern general database that can do what Mongo does, and what Mongo does is essential (or at least extremely nice to have) to enable modern applications.

Docusign - Obviously there would be electronic signatures without Docusign. They did it first, they did it best, and I will do a quick follow up post on them, but the signatures themselves, the world would still have electronic signatures that work just fine.

Tinker
Print the post Back To Top