Investing is Difficult
Why is investing harder than it seems?
A very curious case:
Imagine you are in 2012 and a company just IPO'd. You analyze it and, in hindsight, you got the fundamentals perfectly.
Revenues grew 24x and Net Income more than that while margins stayed sky high.
This company is Meta, result:
Barely Over-performing the S&P 500 and heavily Under-performing the Nasdaq.
Meta is interesting because it does seem to be true that the market places a relatively low value on companies that are generally agreed to be bad for society.
Otherwise I think it’s valuation would be higher and the stock would have comfortably beat the index.
Two of the hardest aspects of investing are patience and resolve. The ability to wait out bad times like these and make it to the other side.