1/ Business Volatility vs. Stock Volatility
When you look at this company's long-term revenue growth, it's hard not to be extremely impressed
It doesn't get any smoother than this!
And yet.....
When you look at this company's long-term revenue growth, it's hard not to be extremely impressed
It doesn't get any smoother than this!
And yet.....
2/ Yet, If you match up this company's revenue growth with its biggest stock price declines,
you might be puzzled
you might be puzzled
3/ When you look at this company's long-term stock returns,
some of those drops are barely noticeable,
and it makes sense why this stock was a huge winner
some of those drops are barely noticeable,
and it makes sense why this stock was a huge winner
4/ Yet,
when you look at the size & number of HUGE drawdowns,
you might be puzzled again
when you look at the size & number of HUGE drawdowns,
you might be puzzled again
5/ A business and its stocks are 0% correlated in the short-term
but 100% correlated in the long-term
but 100% correlated in the long-term
6/ The stock market as a whole works the same way
7/ This is why I constantly stress
over and over again
over and over again
8/ If you guessed $NFLX, you were correct
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