Unpopular opinion: Valuation does matter (even w/ easy Fed). Yes strive to own the best of best companies but even they become overvalued at some point.

I don't mind being wrong, as long as I'm right more times than wrong and continuously improving my strategy.

Example:
Take 3 of my own portfolio stocks $DDOG, $FSLY and $SHOP for example that I thought were overvalued at various points this year:

Multiple factors to look at but let's look at last 2 quarter's revenue growth:
$SHOP ~97%
$DDOG ~ 65%
$FSLY ~ 50%
Did they deserve their peak EV/S LTM earlier this year?

Earlier this year (EV/S LTM):
$SHOP ~ 70x
$DDOG ~ 55x
$FSLY ~ 72x

IMO no. I own them because I love them ( i.e SHOP is ~25% of my portfolio). But you would've had much better ROI adding elsewhere while waiting for a 'dip'.
Did they deserve their peak EV/S LTM earlier this year?Earlier this year (EV/S LTM): $SHOP ~ 70x $DDOG ~ 55x $FSLY ~ 72xIMO no. I own them because I love them ( i.e SHOP is ~25% of my portfolio). But you would've had much better ROI adding elsewhere while waiting for a 'dip'.
Did they deserve their peak EV/S LTM earlier this year?Earlier this year (EV/S LTM): $SHOP ~ 70x $DDOG ~ 55x $FSLY ~ 72xIMO no. I own them because I love them ( i.e SHOP is ~25% of my portfolio). But you would've had much better ROI adding elsewhere while waiting for a 'dip'.
Did they deserve their peak EV/S LTM earlier this year?Earlier this year (EV/S LTM): $SHOP ~ 70x $DDOG ~ 55x $FSLY ~ 72xIMO no. I own them because I love them ( i.e SHOP is ~25% of my portfolio). But you would've had much better ROI adding elsewhere while waiting for a 'dip'.
"So @TechStockMarket, what do you personally do when valuation is high?"
Short-Answer: Nothing.
Long-Answer: I literally do nothing. No trimming & no adding.

My mind is at ease, that's the most important part (your strategy has to work for YOU).
Unless the valuation is insanely outrageous, I'll let my stocks ride. WORST thing I can do is stand in the way of a bull!
Now that I'm done my rant. Time for my weekly #FF. My new 5 this week strive to educate others and are fantastic follows to learn from:

@jablamsky
@plantmath1
@TNB_Research
@dhaval_kotecha
@MazwoodCap

Keep up the positive attitude, enjoy your weekend đź‘Ť!
You can follow @TechStockMarket.
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