Akshat Shrivastava

Akshat Shrivastava

27-10-2022

14:25

20 years ago, Amazon's stock price crashed by 95%. But after that crash, the stock grew 500 times in 20 years. The point is that there is a huge difference between investing in a stock like Amazon & HUL [A thread..]

[1] The product stickiness when it comes to tech is short-lived. A dominant product can become an outdated product within a couple of years. Kodak- a firm that had a near monopoly --of analog photography market, got crushed with days.

[2] When you invest in Meta, Google, Apple, Amazon, you are not betting on the current version of the company; you are betting on what the firm is likely to do next.

[3] Unlike the previous generation tech giants, contemporary tech giants are sitting on massive cash reserves (Google = 125Bn$) This means they can invest a lot (eg. hire best engineers) in terms of winning the R&D race. And, setting growth prospects for the next round.

[4] A lot of folks today are making a lot of noise: "META is gone"; "Google is done" Stock price fell by X% in a single day. Ok, cool. Tell me which firm has the potential to replace them?

[5] When you are buying these companies at least have the patience to hold them for their next round of innovation. And, see how it plays out.

[6] The only people, who are deeply worried about these firms are the ones who have an unbalanced portfolio (with everything riding on these stocks). Any sensible tech investor gets it: that is much easier now to guess which the next Amazon would be [Hint: it would be Amazon]



Follow us on Twitter

to be informed of the latest developments and updates!


You can easily use to @tivitikothread bot for create more readable thread!
Donate 💲

You can keep this app free of charge by supporting 😊

for server charges...