The Investment Scientist

Archive for June 2024

I asked you all this question yesterday, and today I will share select replies followed by my comments on the matter. 

JG wrote: The joy ride will eventually end. The current price dictates an annual revenue growth of 10 percent per year for the next 100 years. This isn’t happening. Ultimately, the dream will fade, and many will lose their money.

JG also shared the chart below. What CSCO was for the internet age, NVDA is for the AI age, namely, an infrastructure provider. This picture is indeed worth a thousand words.

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In the last few days, I have gotten a few client calls about this.  On top of that, my teenage son asked me the same question, telling me a classmate of his had bought this stock and made a few thousand dollars.  Instead of answering this question outright, I’d like to hear your views. Please reply to this email, tell me what you think and give me your explanation. 

In the next email, I will share with you not only my thoughts but also give you a summary of how you, my newsletter subscribers, responded.

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Author

Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC.

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