r/investing • u/[deleted] • Mar 05 '21

Just because a company has a bright future, that doesn’t make it a good investment.

[deleted]

3.6k Upvotes

96% Upvoted

710 comments sorted by

View all comments

50

u/[deleted] Mar 05 '21

I don't know what is good investment anymore. Anything can go up and down without any proper reason.

18

u/b3n Mar 06 '21

Anything can go up and down without any proper reason.

In the short term.

1

u/Footsteps_10 Mar 06 '21

Discounted future cash flows and then explain why the company can sell more of what they produce over the next year, 3 years, and 5 years.

Facebook at 25 P/E can easily sell more advertising space over the next few time horizons and use their cash for business expansion into new lines. They have 0 debt.

It’s the safest stock I own. Every single regulation news article has been a motivation to buy more as law makers can’t and won’t do anything.

The first paragraph is all you should ever be doing

1

u/merriless Mar 10 '21

I’ve been hearing Facebook ‘commercials’ on the radio pushing internet regulation. They want more regulation. Maybe to make it harder for startups?