Apple, Amazon, Microsoft, Facebook & Google:
- Did you know that these FIVE companies are over 20% of the SP500 Index?
- Did you realize that the stock prices of these firms have risen much faster than sales growth?
- As their prices have risen faster than sales, they have become much more expensive
- Do you believe that stock prices can rise faster than sales forever?
- What is a prudent investor to do?
KCR believes that investors are putting impossible multiples on stocks that will grow fast based on impossible promises from pundits. For investors interested in learning about market cap concentration, index funds, and other historical periods like today, please see our papers on our quantamental investing strategies:
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The information, data, analyses, and opinions presented herein (a) do not constitute investment advice, (b) are provided solely for informational purposes and therefore are not, individually or collectively, an offer to buy or sell a security, (c) are not warranted to be correct, complete or accurate, and (d) are subject to change without notice. Kailash Capital, LLC and its affiliates (collectively, “Kailash Capital”) shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information herein may not be reproduced or retransmitted in any manner without the prior written consent of Kailash Capital. In preparing the information, data, analyses, and opinions presented herein, Kailash Capital has obtained data, statistics, and information from sources it believes to be reliable. Kailash Capital, however, does not perform an audit or seeks independent verification of any of the data, statistics, and information it receives. Kailash Capital and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your tax, legal, and accounting advisors before engaging in any transaction. © 2021 Kailash Capital, LLC – All rights reserved.
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December 11, 2020 |
| Authors: Matthew Malgari, Nathan Przybylo, Dr. Sanjeev Bhojraj and John Durkin
December 11, 2020
Authors: Matthew Malgari, Nathan Przybylo, Dr. Sanjeev Bhojraj and John Durkin