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.

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This company is Meta, result:

Barely Over-performing the S&P 500 and heavily Under-performing the Nasdaq.

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Ben's avatar
Markets are forward looking too. The market doesn’t think META will be able to repeat that growth
Giuliano's avatar
@rpinvestments I agree. Price always reflects future expectations and in this case, it doesn't seem to like Meta's future.
Alan's avatar
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.
Giuliano's avatar
@prinzmyschkin Timeframe doesn't help either. Most of its history was outpeforming. I never heard about that theory of companies being valued lower for being bad to societies, would you expand or send me something to read about it?
Alan's avatar
@giuliano_mana sorry to disappoint it was more of an observation then something I’ve researched thoroughly but for instance Philip Morris and Altria seem to have to pay very high dividends to attract investors.
sam stribling's avatar
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.
Giuliano's avatar
@strib I agree. Just wanted to point out the fact that even if you get everything fundamentally right, you could be underpeforming 10 years after the purchase.
sam stribling's avatar
@giuliano_mana totally and it’s an excellent point!

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