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Originally Posted by DJ FC
If you ever used the portfolio software that you sold, you would know that the real value of a portfolio is the Risk/Reward Ratio (Beta - or some equivelant), you should know about diversification, liquidity risks, inflation risks, risks risks risks.
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Well, fortunately for me I do use what I sell, and I use it all the time. Without it, I would have never bought EQIX in the 30's and sold at $62.98 (now it's a $57 stock). I alsoowouldn't have bought TWTC and made a 172% gain in my first outing and already made $1 per share in a day again. I also wouldn't have bought NFI at $28, and it yields 15%, and now it is trading at $33. I also went long in a sweet little pharma company today which has big potential.
See, you still reading your books and looking at Beta, whihc is good, Beta needs to be measured. But, the true measure of a good PM and what EVERY PM is searching for is Alpha. The % that they beat their benchmark. ;-)
I am an ALPHA male lmao
Another thing you should read up on, especially when trying to evaluate tech companies is ENTERPRISE VALUE. I'm sure your text books don't cover that and I doubt you'd even know where to look to find it, but it is a key measure for tech companies. Also, ratios like EV/EBITDA. Or, you can look at time lagged EPS on the same chart as current EPS to look for true growth, or earnigs that tend to fizzle. But then again, that's just me, the heard head who doesn't know as much as college boy.