Re: the lottery is a tax
  By: August Abolins to Arelor on Sun Feb 25 2024 08:56 am

 > But for the last year it has produced pretty good value.  a
 > simple $1000 investment a year ago would be $6000 now. That's
 > pretty good in my book.
 > 
 > But NVIDIA is supposed to be different. It's their tech that is
 > behind all that is driving the AI boom.
 > 
 > 
 > 
 > Ah.. and you are remaining domestic. That's probably a prudent
 > approach.
 > 

First things first:

The stock price multiplying itself by 6 does not mean the company is producing
value. Obviously, if you pick such a raise, that's great, because you can pump
and dump and be done with it.

What often happens is investors start overrating or underrating mediatic stocks
based on speculation regarding what might happen to the firm next. You can make
great gains jumping in with them, but the point is at that time you are
gambling rather than investing.

When you buy a stock at a higher price than the current state of the company
grants, because you "know" they will control the next hyped cool thing (ie. AI)
in a couple of years, you are not buying the productive value of the company as
much as you are buying a hope.

Most tech companies would take half a century or more to pay their investors
back from their benefits because so many people is investing in hope rather
than productive value. These investors are banking on the fact the firm will
multiply its productivity so wildly and in such a short term that I think they
are either bonkers or willingly playing Tulipmania.

I don't remain domestic in my investments. I have purchased all the Spanish
stock I wanted for my portfolio and now I am investing outside, because Spain
sucks.

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