Butterfly Network Stock – A Play on Portable Ultrasounds

Do as I say, not as I do. We find ourselves guilty of that sometimes. For example, we advise readers to never try and time the market, but we’ll occasionally engage in the practice ourselves. When Alteryx dumped -40%, we couldn’t help but open a position. Sometimes, we’re willing to take on additional risk because we believe the upside outweighs the potential downside. In finance, they call these “risk-adjusted returns,” and everyone will have a different tolerance for risk. For newbie investors, there’s an inclination to take on lots of risk in exchange for a great story.

Many of these great stories you’ll find with special purpose acquisition companies (SPACs) that often take pre-revenue startups public in a process that usually does a disservice to retail investors. Generally speaking, we avoid SPACs like the plague, though we did invest in one. The SPAC vehicle is not inherently bad, it’s the pre-revenue companies that typically use SPACs which we’re not big fans of. When there is a company going public via SPAC that we might like to invest in,

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