I was starting college in 2016 and had no money ![img](emote|t5_2th52|31225)![img](emote|t5_2th52|31225)![img](emote|t5_2th52|31225) But if I did have money, I would throw it all into NVDA in 2016 at $7 a share ![img](emote|t5_2th52|8882)![img](emote|t5_2th52|8882)![img](emote|t5_2th52|8882)
Respectfully, you don’t know what you’re doing. PE ratios are useless in a vacuum. You need to first do the qualitative analysis prior to looking at a PE ratio. That is the right answer. Sometimes a low PE means the company is cheap for a reason. That’s the 1 scenario you’ve described. But there are many more. A cheap PE can mean the company is truly misvalued by the market… think META at $90. Sometimes a high PE means there is a lot of growth priced in. But that does NOT mean the stock is expensive. It just means the risk of misexecution is there. Think NVDA. If they do everything that they plan, the stock is actually cheap because its growth justified the valuation. On the other hand, sometimes a high PE means the stock is severely overvalued. And then you have companies like AMZN that you can’t really use PE on. You’d value them on an operating cash flow basis. PE ratios are great if you know what you’re doing. PE ratios are shit if you’re a beginner.
Trading is a suckers game. The way to make money is via patience and research and holding. I invest in NVDA where my cost basis at a current price is $2.50. I understood the potential for their technology through patient research and my career in technology strategy consulting work. I bought and patiently held. I’m still holding and enjoying dividends well in excess of what I paid for the asset. This is how you make money. One time I read some bad advice on making money by writing covered calls and sold $35 out of the money calls for $7 when it was trading at $21 for 2/3 of my position. So worst case I was doubling my money and a huge gain on my cost. Within 3 months the stock was at $60 and I lost my position that today would be over $5M. Fortunately I held onto the 1/3 I didn’t write calls on. Trading is for suckers.
I am doing the same. My operating thesis is S&P 4600 years end. Next two weeks usually pretty choppy, I am hoping to start in next week. If under 4100, I will put in 1/3 . Under 4250, 1/4 of total planned . Who knows, but have a plan for a drop no matter what . DCA saved me from leaving NVDA down 48% now up 140% Not for everyone but SPY VOO will come back so I am looking for an opportunity
This is so stupid. You buy short dated puts on a stair stepping up NVDA. You could've just scaled in on fib retracements from recent lows with puts dated at least until December. But I'm mentioning scaling in and patience like this is r/stocks Gj going full wsb
That's true, but I'm not betting on another decade of such insane outperformance, because the implications it would have on relative valuations would be unprecedented historically. [I make the case here](https://www.reddit.com/r/stocks/comments/13bjqkk/rstocks_daily_discussion_monday_may_08_2023/jjdy2f2/) for instance, that most of this US outperformance was valuation richening, not earnings driven. Lost decades for the US (2000s) or countries like Japan have seen simultaneous periods of value/small caps/ex-single-country returns shine, so I view it as a hedge to another post Dot Com failure. I like ex-US small cap value especially because there is more to diversification than simply country of origin. You could make the case that companies like Nestle, ASML, TSM, Shell, while international, are still pretty similar to multinationals in S&P 500. So you aren't *really* getting uncorrelated assets. But $2B market cap companies in Japan or Switzerland with domestic revenues? They'll zig when NVDA zags. Just my opinion. [I have more arguments in this long list of posts/comments I made](https://www.reddit.com/r/stocks/comments/15vbkbq/rstocks_weekend_discussion_saturday_aug_19_2023/jx1h3lx/). But I think S&P 500 will be just fine.
Puts worked on NKE and QQQ fades this morning Going to do the same thing with TSLA when it pops on the fucky delivery numbers that were revised a million times And stop fucking around with NVDA puts ![img](emote|t5_2th52|4640)
**FUCK YOU NVDA** ![img](emote|t5_2th52|27421)![img](emote|t5_2th52|27421)![img](emote|t5_2th52|27421)![img](emote|t5_2th52|27421)![img](emote|t5_2th52|27421)![img](emote|t5_2th52|27421)![img](emote|t5_2th52|27421)![img](emote|t5_2th52|27421)
Inflation in US equities, commodities, and RE feels like a Veblen effect. Latest iPhone, Tesla EV, gold bars from Costco, NVDA stock… all things people seek out for status and bragging rights. The nature of demand has changed, and it will keep inflation high prob forever unless something very drastic happens.
>Nvda is doing nothing that Google hasn’t already done they are probably not doing anything new. but AI/ML tech seems to have come to a stage where NVDA's existing products are needed. otherwise, why has NVDA's revenue grown from 2B to 10B within couple of years ? if AI/ML has caused this increase in revenue for a company that solves one part of the puzzle (processing), was wondering why companies that cater to other part of same puzzle (storage) are showing opposite trend and not seen as likely beneficiaries of that.
Forced to take profit early on my NVDA puts because of slobber-brained cud-chewing cattle furiously buying every share they could possibly get their hands on even against blindingly obvious sell signals. Left a lot on the table. I loathe these empty-brained thoughtless steers so much.