What's up guys, Young Shkreli in the building
If you know me, you know that I believe the economy is in a bubble and with interest rates rising, the credit in the economy is going to be reduced meaning less demand and therefore lower prices for your stocks on average. AMZN is going to be hit hard when this bubble bursts.
Don't get me wrong, Amazon is a great company. I just read a Steve Jobs autobio and it told me that the man had the willpower of a thousand men and was a creative genius. The fact that Amazon can be even close in market cap is amazing. Jeff Bezos should be very proud of himself because I personally believe that Amazon could become the first trillion dollar company in the future.
That said, it has a pe ratio of about 150 (reduced from 300 in the last earnings report) and if you've read The Intelligent Investor and Security Analysis like I have, you know that we don't believe in buying companies above a ~20 pe ratio. I understand the philosophy of ignoring the pe ratio, but it has worked well for me and a lot of billionaire money managers (not that i'm a billionaire). It's funny when people talk about tech companies and say, "look YoungShkreli, these companies are worth more than their current assets or pe ratios, they have attributes that are transcendental." If you believe that, you will not do the best in the long run. Don't invest with emotion, invest with logic and cold numbers. That is how you will succeed.
In looking at this FB dip, many will be thinking to buy it, but it too has a high pe ratio and does not have the current assets to back up its valuation. You COULD make money on these trades. But as an INVESTOR, it is not about what can happen, it is about what works in the long run and value investing will always work.
I've diverted from AMZN a lot but not really, because all of these ideas are relevant.
My father recently had about a $100,000 position in AMZN and I told him to sell at around 1840. I have skin and pride in this game as a result.
SUMMARY:
I don't believe in shorting stocks generally, but you could probably pull it off with AMZN. That said, I DO NOT BELIEVE YOU SHOULD SHORT AMZN (unless you are truly willing to take the risk) instead here's what I think: if you own AMZN, GET OUT NOW!
Thanks bros,
Young Shkreli
PS:
Look at this earnings report as a great chance to sell the news. People are going to think AMZN can only go up, but they are wrong.
If you know me, you know that I believe the economy is in a bubble and with interest rates rising, the credit in the economy is going to be reduced meaning less demand and therefore lower prices for your stocks on average. AMZN is going to be hit hard when this bubble bursts.
Don't get me wrong, Amazon is a great company. I just read a Steve Jobs autobio and it told me that the man had the willpower of a thousand men and was a creative genius. The fact that Amazon can be even close in market cap is amazing. Jeff Bezos should be very proud of himself because I personally believe that Amazon could become the first trillion dollar company in the future.
That said, it has a pe ratio of about 150 (reduced from 300 in the last earnings report) and if you've read The Intelligent Investor and Security Analysis like I have, you know that we don't believe in buying companies above a ~20 pe ratio. I understand the philosophy of ignoring the pe ratio, but it has worked well for me and a lot of billionaire money managers (not that i'm a billionaire). It's funny when people talk about tech companies and say, "look YoungShkreli, these companies are worth more than their current assets or pe ratios, they have attributes that are transcendental." If you believe that, you will not do the best in the long run. Don't invest with emotion, invest with logic and cold numbers. That is how you will succeed.
In looking at this FB dip, many will be thinking to buy it, but it too has a high pe ratio and does not have the current assets to back up its valuation. You COULD make money on these trades. But as an INVESTOR, it is not about what can happen, it is about what works in the long run and value investing will always work.
I've diverted from AMZN a lot but not really, because all of these ideas are relevant.
My father recently had about a $100,000 position in AMZN and I told him to sell at around 1840. I have skin and pride in this game as a result.
SUMMARY:
I don't believe in shorting stocks generally, but you could probably pull it off with AMZN. That said, I DO NOT BELIEVE YOU SHOULD SHORT AMZN (unless you are truly willing to take the risk) instead here's what I think: if you own AMZN, GET OUT NOW!
Thanks bros,
Young Shkreli
PS:
Look at this earnings report as a great chance to sell the news. People are going to think AMZN can only go up, but they are wrong.