* A core point of mine and a foundational part of bear case for equities…
phogan
When looking at areas like the semis and other parabolic stocks with presumably bright growth prospects, I always think of the following: “In the case of Microsoft in 1999, it mostly delivered on its promise of success, compiling an impressive record of nearly 15% annualized earnings growth over the next 16 years. However, investors buying its shares in 1999 would have spent the entire 16 years nursing an ugly and altogether frustrating loss.” MSFT was just under 30x sales in 1999 and grew EPS almost 15% for 16 years yet all you did was break even. At some point, the weighing machine matters. I applaud those who hit it big with these, but its the going forward that would scare the crap out of me.
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
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