Thread by @TihoBrkan

It has become quite clear that the growth stock bubble witnessed over the last 12-18 months, with an orgy of speculation has now popped and results are and might continue to be extremely painful.

$PLTR $FSLY $TDOC $PINS

$SHOP $SQ $MELI $SE

$NFLX $BABA $PYPL $ZM

$SMLR $NVCR $U $HUBS

$WIX $FUTU $BILI $RDFN

$TOST $PTON $AFRM $LMND

$DOCU $PATH $RSKD $NIO

$FVRR $HOOD $COIN $CPNG

$ROKU $STNE $BIDU $YNDX

$UPST $CELH $EXAS $TWLO

So, what's the summary?

• justification of low-interest rates did not save the speculators in growth stocks

• buying any asset at ridiculously high valuations rarely works (if ever)

• following social media gurus into the same stock is bound to have unintended consequences

• since we are all wrong, the only way to protect your capital is to ensure ample margin of safety

• when you're buying growth at any price, you're likely to see your portfolio drop meaningfully in price

• tops occur when the popularity in stocks & sectors reach a frenzy

If you thought there is a new paradigm shift, a new economy, and that you have discovered it — and will profit from it — before others was clearly an illusion of invulnerability & overconfidence (optimism bias on steroids).

There is nothing new under the sun, just another cycle.