I Am Out Of Melody Amongst These Times

At pith I am an old-fashioned value investor. Maybe a growth-orientated 1 - but the valuation has to brand sense on fairly pocket-size assumptions earlier I larn excited.

I owned Facebook inwards the twenties. I could brand the per-subscriber numbers run - together with it was a mid-single digit times revenue together with it seemed a fairly skillful bet that revenue would rising a lot together with that margins on that revenue would hold out good. I am non averse to paying vi times sales for businesses that are growing fast if the end-margins are probable to hold out good.

At the fourth dimension the (incorrect) consensus was that Facebook would non create out the transition to mobile.

I sold my Facebook asset equally it went up. Too early on I regret - together with at to the lowest degree inwards business office unintentionally. I purchased the asset past times writing set options perfectly happy to convey the stock set to me. I sold past times writing telephone vociferation upward options, modestly happy if it was called. I simply had a buy-price together with sell cost inwards my head based on what I idea were sensible valuations and decided to steal a picayune premium simply about them. [This is close the solely stock Bronte has e'er acquired this way. We did it because the choice premium was extraordinarily high together with nosotros figured the trouble organization was far less volatile than the stock.]

These days I am no longer together with then inwards melody amongst valuation.

Yesterday Facebook did an acquisition that makes no sense to me. I had previously - on Twitter - questioned the used to hold out an unremitting bull on the marketplace (a order that is deeply uncomfortable for somebody whose skills together with inclination are on the brusk side). I am non bullish straightaway - together with convey positioned far closer to neutral than whatever fourth dimension inwards Bronte's history.

But I am non comfortable amongst that order either. Clever people are doing things I don't sympathize together with I am simply feeling onetime together with tired. 

John

PS. No order on $FB. Still long $GOOG.