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Thread 1/ Getting a lot of ... "What's wrong with $SQ? Over last year stock price is down, while so many other stocks are up nicely." It's a good question! We should always be looking at positions, esp ones falling. I don't have answers, just some thoughts...(cont)
2/ First, part of the problem was $SQ's torrid run. From 10/1/16 - 10/1/18, $SQ was up 734%! 734%!!!! That's an amazing 2-year run and safe to say that price certainly got ahead of itself as it approached $100. Shares were probably wildly overvalued at that time. (cont)
3/ Then rock star CFO Sarah Friar @thefriley announced she was leaving for Nextdoor, leaving huge void behind. Now, almost a year later, were stuck with a "stagnant" share price. (cont)
4/ Stocks are funny things -- especially over the short term. They go up in fits and starts, refusing to steadily follow their revenue and earnings growth. Pick any great stock -- ANY! -- and find one that didn't have very bumpy 1- or 2-year periods over great runs. (cont)
5/ @morganhousel explains this so well here. The best stocks - the very best of the best - have had periods of gut-wrenching volatility. There's just no getting around it. (cont) fool.com/investing/gene…
6/ Over the long-term, though, stocks can be great wealth-compounding machines. That's why finding great companies and holding over long time periods, works so well in investing. Over the short-term, I certainly have no answers... (cont)
7/ The funny thing is ... A year ago we could have been saying same thing about $SHOP which was stuck in a trading range, while $SQ soared. I guess what I'm trying to say is...(cont)
8/ Don't let recent price actions affect your thoughts on investments.
Find great companies.
Hold for the long-term.
And I could be wrong about SQ, SHOP, or any of my holdings. YMMV. JMHO.
Find great companies.
Hold for the long-term.
And I could be wrong about SQ, SHOP, or any of my holdings. YMMV. JMHO.
