i should’ve read this before i brought Slack...

SAP xjebjs
Sep 25 31 Comments

and promptly loss more than 40% of my money in the last 3 months

Introducing the Rule of 40 (And Why Investors Should Avoid Slack, Uber, and Jumia) https://www.fool.com/investing/2019/09/25/introducing-the-rule-of-40-and-why-investors-shoul.aspx

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TOP 31 Comments
  • Twitter
    🐨 koala

    Twitter

    BIO
    I got a bio now. Do you?
    🐨 koalamore
    Let me guess, you are a new grad?

    Only newbs buy individual stocks. Guess you haven’t done any research re: investing?

    Even the “professionals” who graduated from Ivy League schools and do this 8 hours a day everyday with a ton more resources than you can’t beat the S&P 500 over 10 years.

    What makes you think you can?

    https://www.google.com/amp/s/fortune.com/2017/12/30/warren-buffett-million-dollar-bet/amp/
    Sep 25 12
    • Twitter
      🐨 koala

      Twitter

      BIO
      I got a bio now. Do you?
      🐨 koalamore
      what r u wagering?

      U cannot invest in companies like BRK.A or B that own thousands of companies.
      Sep 25
    • Flowcast lulll
      Nope, I pick winners, mostly.
      Sep 25
    • Twitter
      🐨 koala

      Twitter

      BIO
      I got a bio now. Do you?
      🐨 koalamore
      That’s why ur still working at flowcast?
      Sep 25
    • Flowcast lulll
      Tc prolly?
      Sep 25
    • Flowcast lulll
      We already know twitter is a loser
      Sep 25
  • New / Eng
    Psynaptic

    New Eng

    BIO
    Working on Brain Machine Interfaces
    Psynapticmore
    This is not great advice. It's better than jumping in on hype, which is what you did, but this says NOTHING about the price of a stock. Meaning, this is suggesting you invest in a company no matter now expensive it's stock is simply because it passes the rule of 40. That obviously cannot be good advice if you're a half decent investor.
    Sep 25 1
    • SAP xjebjs
      OP
      Agreed, the measure would be great if it also takes into account of P/E ratios, for example
      Sep 25
  • Apple
    SteveCook

    Apple

    PRE
    AMD
    BIO
    Spittoon of Upper Mgmt
    SteveCookmore
    Thanks for sharing this article. I lost money in Slack as well. I am going to follow this handy rule of 40 before investing anywhere now. Thanks again.
    Sep 25 0
  • SAP xjebjs
    OP
    So I dumped Slack shortly after I read the article, and picked up Cloudflare earlier today. According to their numbers, revenue grew 48% and their profit margin is 77%. Let’s put the theory to the test! #GRODT
    Sep 27 2
    • Google vhoggd
      The article does not say whether the rule is predictive of growth. The way it was written it seemed like if today the company has a good rule of 40 score then last year the stock grew well.
      Oct 1
    • Palo Alto Networks Clowns
      Oh no, you read incorrectly. Cloudflare profit margin is -39%. The gross margin may be 77%, but the rule of 40 use ebitda. You can see profit margin in yahoo calculated for you. So, cloudflare has growth of 48, but profit margin of -39, so a score of 9.
      Oct 6
  • Microsoft Andronicus
    Sorry to hear this. Read the “boglehead’s guide to investment” to learn about index investing, a passive and diversified approach to investing
    Sep 25 1
    • Intel
      I_am_VTSAX

      Intel

      BIO
      💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲
      I_am_VTSAXmore
      +1 bogleheads + VTSAX ftw
      Sep 29
  • Expedia Group you’renext
    Hindsight is 20/20 easy to write this article now
    Sep 25 0
  • Taylor Farms azerty_
    If you read the bible “The Intelligent Investor”, you will find a chapter which ends with the description of the acronym IPO.
    IPO - I’m Probably Overpaying.
    Don’t touch a stock within a year of the IPO. Let the market decide its price. The fact that the executives thought it was worth that much doesn’t mean anything
    Sep 25 0
  • Broadcom Ltd. boppie
    now they are saying this, i am not sure what to do with my Slack, hope they can be bought by big company
    Sep 25 1
    • Chase / Creative dotvector
      They have room to grow. MS is slowly eating its lunch but there are plenty of non-large enterprise willing to use Slack and its ecosystem of integrations
      Sep 27
  • Red Hat zeGerman
    The product in itself ain’t bad, but it would stand any competition if there’d be new ones booming.
    Sep 28 0
  • New HtxM56
    You should have used slack before you used it? It's a stupid chat system. There is no organization and adds more distraction than value.

    but they were first to remake a modern AOL chat.
    Sep 28 0
  • Google / Eng ociccijddj
    But datadog mentioned in the post has gone down as well?
    Sep 27 0
  • Red Hat zeGerman
    You should’ve actually read this before you bought it:
    https://us.teamblind.com/s/nc7NtA6M
    Sep 27 0
  • New justgo
    Come on. Slack is good!
    Sep 27 0
  • Google The Old Nite
    Shouldn't need an article to tell you that you should be wary of unprofitable companies. In general, don't invest in companies unless you have a good reason. (I think this will go up is not a reason, let alone a good one)
    Sep 25 0

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