Buy Hold Rant
Identifying undervalued stocks in a crowded market
9/27/2025, 7:25:48 PM
Economic Summary
- Investor preference is to buy great companies at good prices, but sometimes buying a good company at a great price (e.g., BMBL) is attractive if the valuation is compelling.
- Price should be evaluated relative to industry averages and peers with similar growth rates; what constitutes a 'good price' is context-dependent.
- Faster revenue growth and larger margins typically justify higher revenue multiples, so growth rate and margins drive valuation differences across software and tech companies.
- The broader market can be overpriced at times, which affects what constitutes a good entry price even for quality names.
Bullish
- Good company currently available at a very attractive price.
- Could improve execution and become a great company if growth resumes.
Bearish
- Company not currently great and not growing; operational issues may persist.
- Market-wide overvaluation could compress multiples and hurt returns.
Bullish tickers
BMBL
Bearish tickers
BMBL
BMBL
Bullish
Currently trading at an attractive price relative to peers; could become a great company if execution and growth improve.
Bearish
Bumble is not growing and faces issues that need resolution; valuation could deteriorate if growth doesn't return.