The Daily Insider: The best time to buy is when Mr Market panics

The interactive WhatsApp channel for our Premium subscribers is an active forum. Yesterday one of its members asked about Cloudflare, the exponentially expanding (50% annual revenue growth) global leader in internet security and one of my favourite companies.

He pointed out that at the end of November, Cloudflare’s shares were trading at $220. Today they can be bought for just $100. “Is this a correction that one should overlook,” he asked, “or is this the beginning of the end for the star performer. Should one cut losses?”

I couldn’t resist. After watching the share movement for a couple of years we bought Cloudflare (code: NET) in the BizNews Webtrader portfolio at the Covid-panicked bottom in March 2020 at just above $20 a share. And, erroneously, sold out a few months later at $60 and been kicking myself ever since. So, when we launched the new $10 000 BizNews Shyft portfolio last month, Cloudflare was one of our “wild card” inclusions.

The recent share price decline has nothing to do with the company and everything to do with Mr Market. Our favourite manic-depressive went crazy for the stock last year. And is deeply depressed about it today. Cloudflare the company, meanwhile, continues to expand exponentially. A reminder to NEVER become a slave to Mr Market. But, instead, to always use him to your own advantage.

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