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..]
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A dominant product can become an outdated product within a couple of years.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.
A dominant product can become an outdated product within a couple of years.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.
![[1] The product stickiness when it comes to tech is short-lived.
A dominant product can become an...](https://pbs.twimg.com/media/FgFP8QuUcAAdoJe.jpg)
[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.
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.
![[3] Unlike the previous generation tech giants, contemporary tech giants are sitting on massive cash...](https://pbs.twimg.com/media/FgFRX-CVEAUav6a.jpg)
[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?
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.
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]
Any sensible tech investor gets it: that is much easier now to guess which the next Amazon would be
[Hint: it would be Amazon]
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