1) During 1998-1999 Amazon's price to sales hovered between highs of 45 X sales to around 25 X sales before the pop of the bubble:

Today, names i hold like $LVGO and $CRWD are trading at the mid 30's time sales

Names like $SQ, $PYPL, $ROKU , 𝒍𝒊𝒕𝒕𝒍𝒆 more more realistic

2) Whilst i don't think this is exactly the same as 1999, there are some uncanny resemblances

- For me, holding a basket entirely of SAAS companies is too much concentration, but that's just me

- As a result, i did not earn +50% YTD returns during the rally

3) But i am cool with that, my goals may get me wealthy slower, as i focus on income stocks for the majority of my portfolio

- Everyone skins a banana differently, and thats also cool

- This rally could extend 3 months, 3 years, i don't pretend to know when it will stop

4) There is huge differences today however, as most of these companies are actually fundamentally strong, as opposed to 1999

- Some are wildly overpriced, sure, but long term, returns are not linear, otherwise everyone would invest in the best companies and make mega bucks

5) Jumping in to these growth names too late may be pretty scaring for some investors

- All i am saying, is 𝐤𝐧𝐨𝐰 the extent of the risk you are taking on

- The best investors will be fully aware of the potential downside they are taking on. Don't be ignorant

6) Most of these young growth companies are valued as per their 𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝 future earnings 5 years out and are discounted back to present day

- What happens if they don't meet those expectations?

- A competitor flattens them?

- Regulatory hurdles?

- Economic Crisis?

7) I am not fear mongering here by the way, just rambling

- Just stressing the importance of understanding risk

- $LVGO for example is a $7.2 Billion company, with $206 Million in TTM revenues

They are not a proven winner, 𝐲𝐞𝐭

8) Crowdstrike $CRWD are a $22.2 Billion company, with TTM revenues of $563 Million

They are an exciting company with awesome (and increasing margins) which will benefit from the digitization and shift to the cloud

9) Markets can be pretty efficient when they want to be, but during times of excess (maybe overzealous) sentiment towards some shift in the business environment, maybe the difference between intrinsic and market value can quite a bit of distance between them before consolidation

10) Again, i don't pretend to know when that is

- Fed's liquidity is 𝒈𝒐𝒐𝒅 for equities, so long as they keep pumping the liquidity and stimulus into the economy and financial markets

- So you're guess is as good as mine, as to when the fun might stop

11) Again, this was just thoughts circling in my mind, as i get asked a lot of questions relating to this in my DM's

- Will i remove exposure to growth names? No plans atm, but will see what earnings look like

- This is my first bear market, so i am learning too

IT

12) For transparency:

I discussed a few names in this thread

I own positions in $CRWD $LVGO $SQ $PYPL