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31-01-2023, 01:27 PM
Hi EnSabahNur,
Yes, perhaps I will be more proactive searching for options.
At 1T valuation at that time, at a 15% hurdle rate, it would need to grow to 4T in 10 years to justify that outsized risk. At a 15-20x PE ratio what would imply 200-300bil net income. Very difficult to envision them achieving that in such a short period of time, outside of a tremendous breakthrough.
For 50% of portfolio to hinge upon this, is very hard to justify, IMHO.
Yes, perhaps I will be more proactive searching for options.
At 1T valuation at that time, at a 15% hurdle rate, it would need to grow to 4T in 10 years to justify that outsized risk. At a 15-20x PE ratio what would imply 200-300bil net income. Very difficult to envision them achieving that in such a short period of time, outside of a tremendous breakthrough.
For 50% of portfolio to hinge upon this, is very hard to justify, IMHO.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger