I would be buying a stock that plummeted due to recent headline concerns regarding its Cybercab launch. I am betting Tesla is more than just a car company with exponential growth ahead.
But Chase the Winner is often the brutal reality of how wealth is generated: by backing the champions even when the stock price makes me wince.
$Apple(AAPL)$ is the poster child of Chase the Winner. Even as critics claim it is too big to keep growing or expensive at P/E ratio of 38, Apple continues its upward momentum, near its 52 week highs.
So I prefer to Chase the Winner as I am betting on innovation & excellence.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- AlanBright·10:0338x earnings is exactly where I stop calling Apple a bargain. Great business, sure, but that multiple has a nasty habit of pulling forward returns lolLikeReport