Buy Hold Rant
Investing Against the Grain - Finding Opportunities in Undervalued Stocks
9/27/2025, 7:23:05 PM
Economic Summary
- Contrarian investing: when markets collectively give up on companies, it can create exceptional buying opportunities with asymmetric upside, as seen in examples like NFLX and META.
- Founder-led theme: companies led by founders can show resilience and long-term recovery even after severe negative sentiment, supporting a strategy of buying discounted quality firms.
- Sentiment risk: short-term public anger or disinterest (e.g., over GameStop/Robinhood episodes or perceived fading categories like dating apps) can depress valuations, creating potential entry points for patient investors.
Bullish
- Founder-led companies can outperform after temporary sentiment-driven sell-offs.
- Buying when the market gives up creates strong long-term opportunities.
- Companies written off as 'dead' have historically staged major recoveries.
Bearish
- Widespread negative sentiment can lead investors to write off a company entirely.
- Backlash over corporate actions (e.g., trading restrictions) damages platforms' reputations.
- Perceived declining interest in categories (like dating apps) reduces investor appetite.
Bullish tickers
METAHOODGMENFLX
Bearish tickers
METAHOODGMENFLX
META
Bullish
Invested when people disliked Facebook; founder-led dynamic seen as a contrarian buying opportunity.
Bearish
Heavy negative sentiment toward Facebook/Mark Zuckerberg led many to avoid the stock.
HOOD
Bullish
Viewed as a contrarian opportunity when market sentiment turned negative.
Bearish
Faced intense backlash related to the GameStop episode and platform actions.
GME
Bullish
Market write-offs and controversy can create entry points for contrarian investors.
Bearish
Subject to intense retail-driven volatility and investor anger during the short squeeze.
NFLX
Bullish
Bought after being written off in 2012 and again in 2022; historically rebounded strongly.
Bearish
Market wrote Netflix off as if it were dead during major sell-offs.
People mentioned
Mark Zuckerberg