03-13-2021, 02:38 AM
Why I don’t believe in growth investing.
<!-- SC_OFF --><div class="md"><p>Edit: when i say growth investing i really meant investing in the biggest companies in a sector, i’m not sure where i got the idea that those were the same thing but i was wrong.</p> <p>How long, throughout modern history, has one company on the stock market remained the largest company in the world? I don’t know the answer to this question but i know it’s not forever.</p> <p>All the giants tumble eventually. If you’re buying amazon, apple, facebook then imo you’re betting that the biggest companies in the world will remain the biggest companies in the world and i don’t think this will ever be true.</p> <p>Sure, these companies have good prospects, avenues for revenue growth, good margins and all that. There’s no real reason to be pessimistic. But eventually they will fall, for a reason we won’t see until it’s too late. That’s why i don’t think these investments are as safe as we like to pretend. </p> <p><strong>If you kept parking your money in the largest company on the stock market throughout its history, you would have lost it all.</strong></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/hatetheproject"> /u/hatetheproject </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/m3qndq/why_i_dont_believe_in_growth_investing/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/m3qndq/why_i_dont_believe_in_growth_investing/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Edit: when i say growth investing i really meant investing in the biggest companies in a sector, i’m not sure where i got the idea that those were the same thing but i was wrong.</p> <p>How long, throughout modern history, has one company on the stock market remained the largest company in the world? I don’t know the answer to this question but i know it’s not forever.</p> <p>All the giants tumble eventually. If you’re buying amazon, apple, facebook then imo you’re betting that the biggest companies in the world will remain the biggest companies in the world and i don’t think this will ever be true.</p> <p>Sure, these companies have good prospects, avenues for revenue growth, good margins and all that. There’s no real reason to be pessimistic. But eventually they will fall, for a reason we won’t see until it’s too late. That’s why i don’t think these investments are as safe as we like to pretend. </p> <p><strong>If you kept parking your money in the largest company on the stock market throughout its history, you would have lost it all.</strong></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/hatetheproject"> /u/hatetheproject </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/m3qndq/why_i_dont_believe_in_growth_investing/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/m3qndq/why_i_dont_believe_in_growth_investing/">[comments]</a></span>Kind Regards R