Our end-of-the-year portfolio review meeting ran into a brick wall almost immediately when one of our MBAs sparked up some Slurricane creeper that could have killed Elvis. Nonetheless, we powered our way through that hurdle, and started down the path of thinking more like portfolio managers and less like stoned MBAs. As risk-averse investors, we’re […]
The simplest questions are often the most difficult to answer. How many stocks should you hold in a portfolio? Starting at 21,000 feet, most investors are people with some amount of capital they want to put somewhere so it can grow over time. The duration of time often correlates to risk tolerance and the amount […]
The more time you spend in institutes of higher learning, the more you realize how little you know. This awareness sometimes means you’ll accept lesser-known facts as truth without probing them. Did you know that when someone dies, their fingernails keep growing? Actually, that’s totally false, and we only learned that recently after repeating this […]
First, they ignore you, then they laugh at you, then they fight you, then you win. Whoever said that was wrong. If you do the right thing, you don’t always win. We learned that through experience. Nanalyze started out as a popular forum to discuss tech stocks. As it grew in popularity, many cheerleaders came around to tout penny stocks. Over time, we discovered how pump and […]
If you spend six figures on business school, they’ll teach you cool things like how to value a company. One method is to evaluate the present value of future cash flows (cash today is worth more than cash tomorrow because of inflation). You’ll often hear investors talk about price/earnings ratio or P/E ratio which is […]
Today’s young tech investors don’t seem to care much about risk. If they did, they’d first need to define risk. For any given portfolio of stocks, a common risk is correlated returns (when stocks move together in the same direction). This is why diversification is such an important concept. If you’re invested in one stock, […]
You’d be hard-pressed to find a Wall Street analyst incapable of telling you what stocks to invest in. Much rarer is the analyst that tells you what not to invest in. This is especially true in the world of tech stocks, where everything is focused on telling great stories. Today’s youthful investors seem more interested […]
Here’s a fun exercise to think about. If you managed your own portfolio of tech stocks over the past 20 years, what sort of return would be considered good? (Don’t cheat and try to Google some numbers. Bear with us here please.) How about +400%? If we told you we returned +400% over the past […]
One problem with mainstream financial pundits is their tendency to ball all risky tech stocks into a single category. That’s not a good way to manage risk. You cannot equate a pre-revenue SPAC with an enterprise software-as-a-service (SaaS) IPO that has double-digit revenue growth coming from some of the biggest companies in the world. In […]
We are fortunate enough to spend most of our waking hours researching some of the most exciting technologies you can imagine. It’s easy to make a case that today’s market is only the start of a multi-decade bull market, the likes of which mankind has never seen before. In 2021 alone, Gartner expects that AI […]