The Elephant and the Rope14 Aug 2025 12:03
I’ve been following the different views on here, the price predictions, market cap guesses, growth Vs income debates, and the 'who’s buying what' blurb. It’s all very informative… and occasionally hilarious (credit to Badlands for his one liner come backs!).
But let’s be honest, we’re living in a very different investment world now. 'Tech' stocks are often awarded eye watering premiums, regardless of their actual revenue. NVIDIA brushing up against a $4 trillion valuation? Really? Tesla priced at three or four times more than its nearest competitors, whether electric or combustion? Again… really?
I understand investors buying into the future, but if we’re using that lens, Rolls-Royce feels hugely undervalued. It’s both a manufacturing and a technology company and the potential of its SMR program and the Ultrafan engine could be genuine game changers. Yes, some will argue that’s years away… but so is much of the 'future tech' that’s already being given sky-high valuations.
The reality is, UK markets tend to be… well, static. A bit dull, wrapped in regulation, and loaded with red tape with stamp duty on the way in, capital gains tax on the way out. If you’re hunting for growth, the US markets are the bigger pond. Look at SoundHound, Quantum Computing Inc (QBTS) and Palantir etc all have delivered over the last 6 months, and many will keep delivering if you have the appetite to do a bit of research.
The takeaway? Don’t be the elephant in your own investment strategy. Break the rope, change the perspective, and reassess what’s really possible. There’s no logical reason why Rolls-Royce couldn’t hit £20–£30 in the not too distant future. The naysayers will call it impossible, but that’s often because they’re tethered to outdated thinking (no offence to anyone intended!!). The world is changing fast, and today’s 'impossible' has a habit of becoming tomorrow’s reality… sooner than you expect.
As always, good luck all, just wanted to share my view is all..good or bad..
P.S. — If you’re wondering about the “Elephant and the Rope” reference, Google it. It’s a good one.
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