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
now they are saying this, i am not sure what to do with my Slack, hope they can be bought by big company
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
Sorry to hear this. Read the “boglehead’s guide to investment” to learn about index investing, a passive and diversified approach to investing
+1 bogleheads + VTSAX ftw
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.
Agreed, the measure would be great if it also takes into account of P/E ratios, for example
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
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.
Hindsight is 20/20 easy to write this article now
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)
Come on. Slack is good!
You should’ve actually read this before you bought it: https://us.teamblind.com/s/nc7NtA6M
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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/
That will never make you rich. In these days where most of your TC is concentrated in RSUs of a single company, which is locked until it’s vested, that is the same thing as buying an individual stock. And there are plenty of people from FANG who made millions this way. Sure you could’ve sold all your stocks when they are vested and bought index funds, but that would’ve only turned out to be less than 10% yearly gain even during good economy.
? When did I say it will make you rich?