TradePasta Weekend Summary 7/11/21
DON'T fight the POWER! (The FED)
As a thank you to our readers, we are making this weekend's summary available to all subscribers.
The S&P 500 hit an all-time high this week. Fed policy continues to accommodate equity investors. Real Estate and Technology led all sectors this week, closing up 1.91 and 1.79% respectively.
The tickers below are of companies that we believe are innovators in their respective spaces, and early in their growth cycles.
A few things to keep in mind when investing in high growth companies:
A publicly-traded company has won a game of “survivor” to some extent and has made it through a battle of attrition in the marketplace.
The company is addressing a market large enough to warrant a valuation of hundreds of millions, even billions.
Newly public companies have their best days ahead of them and are likely going to reinvest revenues in R&D, marketing, and new employees, furthering their growth plans.
Once a company makes it to an IPO, it has passed many tests. There were multiple rounds of VC funding, roadshows, forming of strategic partnerships, customer acquisition, etc. 80% of the research HAS ALREADY been done for you.
Because markets look forward, companies with higher projected growth rates can outperform the averages, sometimes by a factor of more than 4x.
These tickers do not constitute a recommendation to buy or sell, but we believe they are worth examining.
SNOW - Software
AFRM - Fintech
ABNB - Travel & Lodging
ASAN - Software
FIGS - Apparel
MQ - Fintech
BIGC - E-commerce
U - Software
XPEV - Electric autos
Thank you for reading. Imagine investing early in this guy’s career!
Congrats to Novak Djokovic! #20 down, one to go!
Disclaimer: This newsletter is for informational and educational purposes only and should not be construed as personalized investment advice. Our recommendations and analysis are based on current events, SEC filings, interviews, corporate press releases, and what we’ve learned as independent researchers. Ultimately, it’s your money and your responsibility. Trading involves the risk of loss.