No. of Recommendations: 21
What am I doing? Well, I am 100% invested (except for cash that I need for the next 2 years) in these SaaS stocks. I am sitting tight and watching. If prices on these stocks drop another 20-30% then I will start using my living expense cash and going on a rice and beans diet.

Somebody posted the other day that they might mortgage their house to buy more. I say they should at least look to history to see where a similar stock traded of an extended period of 15 years.

Chris,

We're actually pretty much on the same page. I certainly agree no one should mortgage their house to buy more, and as I keep saying, things can ALWAYS get cheaper. I don't think we even need to look at historical ranges. That's always the case.

The argument, my argument, is that not only are we no longer over-valued, we're verging on under-valued. I'm not banking on that, but as you know, even if multiples don't expand but only hold, a company growing at 50% should earn you close to 50%/year on your money! (Minus some dilution) Heck, even with a little multiple contraction you can still expect to make 30% per year on a company growing at 50%. When PS ratios were at 25 and 30 and more, I didn't expect that. I'm not sure what I expected...but I assure I was trimming rather than buying.

I'm not trying to time the market here. I'm actually trying to encourage people not to try to time the market, and like, sell out and "wait for the bottom" or something. If people want to own other stocks, that's fine. I happen to think these are the best.

When I read your initial post of this thread, it seemed like you were saying that people would be smart to buy these companies now.

What??? Yes, of course I think it's smart to buy these companies now. Why on earth else would I own them?


Bear
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