Is it just anchoring bias?
After the latest earnings, the outlook is clearer than ever for $GOOGL. The existential threat to the Search business didn't pan out the way the bears warned. They are getting massive traction in many bets and investments. It looks like it is on a clear path to becoming the first $10 Trillion company by 2030, or maybe even sooner.
I know so many people who genuinely believe this $10 Trillion thesis. That implies a roughly 1x (100%) upside from where we are right now. But they still refuse to pull the trigger. They are still looking for discounts, better risk/reward ratios, and underdogs not priced in by the market
And it’s not just $GOOGL. Many other companies have disproportionate advantage in AI trade in next few years.
Why is it so hard to invest in proven winners?
Why do we chase 10x underdogs instead of proven winners for 1x or 2x upside? $GOOGL, $AMZN, $NVDA
byu/mojolakota instocks
Posted by mojolakota
23 Comments
A 100% gain is normally shown as 2x not 1x
Everyone wants to get rich quick
Lol 1x stocks are entirely useless.
They see people posting their 1k to 15k gains on a gamble and want the same thing. Who wants 10% a year when you can have 15,000%
Life stays the same with 1 or 2x stocks
As a NVDA holder, I’ll just stay quiet and think about the optimistic message you are sharing 🫡
Some people treat stocks like lottery tickets sadly
I invested long term in AMD. Thats what ppl dont understand, they dont understasnd investing as opposed to trading when it goes up 5 dollars goes down 6 but goes back up 3 and lose the long term vision of investing
Most of us start with small amount of money, and time is always the enemy.
NVDA is flat for like 6-8 months
We’re gamblers
Stop betting and start investing.
Ter cost basis is $12
My appl cost basis not including drip is $40
Avgo average cost basis is about $90
Think long term.
Buy good companies. Keep buying. Ignore the noise. Stop chasing the dragon.
Because people want to FIRE in 3 years instead of 27
If you invest in NVDA , AMAZON, GOOG now
Then you will be lucky to 2X within 3-5 years.
You allocate a small amount of portfolio to these 10x potential
and you will make the same amount within 1 years if you are right
All about the math
I think the answer is right there in your post title.
It’s not just chasing 10x’s, there is a psychological barrier to buying into a $390 stock. People look at the price and say to themselves “why would I buy 5 shares of that when I could buy 100 shares of the latest small cap runner and maybe make some fast money?” Yes, those same people will often become bag holders, but at least they feel like they had a shot at some serious upside. Also I think a lot of people lately are not looking for stable long term growth, they are looking to replace lost income, beat inflation that’s eating them alive, get out of life crushing debt, etc. These are people that need. money. now. Not 10 years from now. You can say oh that’s gambling, just play the lottery etc but let’s be real here, as bad as the odds are of hitting a winner in the market they are thousands of times better than actually winning the lottery and people know it.
Wow! $10 trillion! Maybe Google will be the entire US economy by 2030.
Because buying ONDS at 1.75 and watching it run to 15 is fun, I only gamble with a small % of the port
Everyone wants the next PLTR, NVDA, RKLB, etc
Dopamine fried by social media
Coupled with extreme pressure to succeed financially from…, you guessed it… social media!
Who says we don’t?
Cause it’s a much smaller return. Unless you got a big pile of cash that is. If I had 100k-200k easy to invest I would just dump it on Google or whatever proven company. More money makes even more money
Because we don’t get paid enough to have a sizeable enough account to make a difference if it 2x
Because you make a small bet on a longshot and see a 250% return in a year and your brain starts thinking “man I should have made a bigger bet”… So you make a bigger bet.
Sometimes it works and usually it doesn’t, but there’s something to “go big or go home”… Unless you’re putting in 50+K per year from your early 30s it’s pretty tough to get to the $3M/person retirement savings level before 65. And even the risky stuff… You rarely lose everything unless you’re betting on total trash companies.