The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I’m hoping it’s the up leg of a double bottom.
Yes - different opinions are good. I do have a percentage in currency but it’s in crypto based currencies. I find that some people really struggle with that one and it’s going off topic but even Druckenmiller suggests that a currency from someone from MIT may become the future reserve currency. So I’m comfort with it and it’s really interesting when you properly research it and get beyond bitcoin. Trade of the decade in my opinion.
The problem with being in cash is that money is devaluing as it’s printed so you may as well be in assets just to stand still.
The challenge for value is that the product of the companies are based on making things so not scalable quickly.
Hence you’re still left with growth where things are quickly and cheaply scalable and also able to tap into the network effect. Hence valuation multiples are less important. Hitting and beating targets is however.
I know people don’t always believe it’s different this time but the virtual world that is appearing is a huge value creation opportunity driven by growth companies. Lse’s approach should be able to tap into that so long as they deliver (exceed) targets.
(I’m sure value will still deliver, I just think there is a higher return opportunity from growth that’ will keep on giving and it’s premature to say we are rotating into value.)
Interesting views here. Having read far too many books, lynch from memory had various ratios and also liked to walk down the high street and get the new ideas like gap and pull in the 5 baggers or 10 baggers. There is no high street today and you need to check the web for the ideas. Graham looked for value and finding stocks and slater had his peg ratio. I’ve built various models and done back tests on a lot of data and those models don’t have anything that stands out anymore as they are all copied and the alpha no longer exists in a world of mass data access and quant investing. I’ve tried many things. Lseg is not value, it’s a believe that their new data approach will deliver a better revenue stream and hence valuation is high and hopeful. You either believe it or you don’t. Or you believe it until you don’t. One day value will come back but with interest rates low for the for seeable future I think stocks like lseg are the best bet. I struggle to find the value stocks that hit slaters criteria. I don’t invest in Cathie Woods funds and don’t necessarily agree in her personal ethos but find the argument of disruptive technologies as something you can’t ignore. I would recommend looking at that for ideas for the future.
Shame they only own 11% of it and there is a 12 million share dilution about to happen. Apart from that crack on.
The market is still hitting higher highs and then corrects so I’m not convinced it’s all going to fail quickly. It’s not in any government’s interests. If it stays flat or starts to fall continuously for 3 months then I’ll believe the bear story. Timing 10-15% corrections is impossible on a regular basis. You’ve just got to take a POV and stick with it until the evidence makes you change it.
I’ll run with the volatility of LSEG for the while.
This is a growth play rather than value play so I don’t think that the PE should be a deterrent. It’s more a case of whether they can transform to a data business and drive the revenues and growth from that. Some questions recently raised on whether they can transform. That’s why share price has fallen (IMO). If they can ride the questions and get back on track, should be able to reverse the fall and get back to previous positive momentum
Other main factor is whether there is really a rotation from growth to value. I’m not yet convinced of that and feel low interest rates and tech have more to go.
At least it looks like LSEG seem forward looking by being open to link to the crypto world and the dark side of Decentalised Finance.
https://cryptonews.com/news/allianceblock-to-offer-defi-bridge-to-london-stock-exchange-10094.htm
I wouldn’t bother until there is something concrete. Pick something else