You have reminded us that growth can take a backseat to value when we enter times of fiscal restraint or "growth slowdown."
Goldman Sachs has issued a warning suggesting much slower growth for the remainder of this decade, and advising investors to expect returns in the future @ more like 3-4% per year rather than the 20% plus experienced in 2024.
Offering your Analysis allows us to decide which course of action we will make in 2025 and beyond - However, we are then reminded that both Warren Buffett and Jamie Dimon predicted a "bad year" for 2024. So far, they have been incorrect!
JD was bearish at some point indeed, though I do not recall Buffett saying that explicitly ... I guess you derived that from his building cash position, not much appetite to buy and some actual selling. If I missed his take, just let me know please.
Thank you Maverick. Very few commentaors have taken the time to analyse the emerging changes to the value/growth relationship. I love your use of the graphs - a picture is worth a thousand words and all that.
I may have an oversimplistic view as I very rarely look at companies account but I remember looking at AMZN a few years ago when they were posting 0 profit and spending like $20b on r&d.
That made me think
A) they could become value by reducing r&d and crazy projects
B) the Bezos narrative works and he manages it very well. If it stopped working he could manage it differently
Great approach George, lovely angle ... the company life-cycle it is what it is and one cannot grow forever at high rates ... sometimes the transition comes naturally, sometimes indeed management can do it. Thank you for your take, appreciate it!
Great, love this quick and full of insights series/idea, looking forward for that part 2 on the key aspect of valuation, that is always tricky. THX MAV!
Hi Mav
TY for your Growth vs Value presentation.
You have reminded us that growth can take a backseat to value when we enter times of fiscal restraint or "growth slowdown."
Goldman Sachs has issued a warning suggesting much slower growth for the remainder of this decade, and advising investors to expect returns in the future @ more like 3-4% per year rather than the 20% plus experienced in 2024.
Offering your Analysis allows us to decide which course of action we will make in 2025 and beyond - However, we are then reminded that both Warren Buffett and Jamie Dimon predicted a "bad year" for 2024. So far, they have been incorrect!
Hi Lauren, welcome!
Great take!
JD was bearish at some point indeed, though I do not recall Buffett saying that explicitly ... I guess you derived that from his building cash position, not much appetite to buy and some actual selling. If I missed his take, just let me know please.
Thank you!
Thank you Maverick. Very few commentaors have taken the time to analyse the emerging changes to the value/growth relationship. I love your use of the graphs - a picture is worth a thousand words and all that.
Welcome Gary, glad to hear! I will have a part 2 on this at some point. Have a great weekend!
I may have an oversimplistic view as I very rarely look at companies account but I remember looking at AMZN a few years ago when they were posting 0 profit and spending like $20b on r&d.
That made me think
A) they could become value by reducing r&d and crazy projects
B) the Bezos narrative works and he manages it very well. If it stopped working he could manage it differently
Growth Vs value is also a management choice.
Great approach George, lovely angle ... the company life-cycle it is what it is and one cannot grow forever at high rates ... sometimes the transition comes naturally, sometimes indeed management can do it. Thank you for your take, appreciate it!
great new series, cheers!
glad to hear!
Danke Mav!
Gerne!
awesome food for thought, very nuanced for sure!
glad, cheers!
Great, love this quick and full of insights series/idea, looking forward for that part 2 on the key aspect of valuation, that is always tricky. THX MAV!
Excellent series! Looking forward to your insights and analysis.
Glad to hear PK, way more incoming …
P.S. helps if you share this with your social networks, thank you
Great to hear, tricky indeed ... . Cheers!
Great format!
Glad to hear, appreciate it man, cheers!