Katie Martin’s published in the Financial Times offers some excellent insight into how big money is viewing current volatility in stock markets. Especially in shares whose ballooning prices made investment geniuses of anyone who has ridden on their very wide coat-tails.
The FT’s Markets editor, who was previously at our other global partner the Wall Street Journal, concludes when big elephants fall over, they make a mess. Small elephants, too. Like our share portfolio members Netflix and Spotify whose share prices dropped sharply last week – one because of a disappointing outlook; the other after “progressives” attacked its most popular podcasting host.
Ms Martin’s article re-iterates how important it is to remind ourselves why we decided to become a co-owner of the company in the first place. This provides a base from which to weight a short-term price influencer against one’s own investment case. That’s the best possible defence against being caught up by Mr Market’s mood swings.
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More for you to read today:
- Amazon Breaks Record for One-Day Gain in Market Cap. Tech stocks have diverged this earnings season as investors subject results to greater scrutiny
- Inside Spotify’s Joe Rogan Crisis. The streaming giant that started as a tech platform is now lurching toward being a media company responsible for what it distributes
- You Can Get Crypto Right and Still Play It Wrong. An irony of investing is that you can be correct about the future and still fail to profit from it
PS: One of our members sent me a batch of quotes by the polymath and extremely rational Thomas Sowell. Starting today, I’ll be sharing them in this newsletter. Now 91, our correspondent writes that Sowell grew up in Harlem NY, served in the US Marine Corps during the Korean War, graduated Magna Cum Laude from Harvard, has a Masters from Columbia, is an economist, social theorist, philosopher, author, a Senior Fellow at the Hoover Institution, with awards including the National Humanities Medal and Francis Boyer award. Many colleges and universities are openly opposed to permitting Sowell to lecture their students and faculty.
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