![]() ![]() ![]() He noted that Fairfax's portfolio doubled in value between 20, while the major US stock indices roughly halved during that period. In the year 2000, there were approximately 17 million websites. Ten years later, there would be more than 2 billion (best estimates peg the current number of internet users at 3.4 billion). The value investor said on the call that his company's stock holdings remain deeply undervalued, but he expects that to change. When the bubble burst in 2000, there were only around 400 million people online worldwide. Experts say the bubble in the sector was inflated and ultimately popped by. He issued his grim outlook for US growth stocks during a fourth-quarter earnings call on Friday, according to a transcript provided by Sentieo/AlphaSense. Tech stocks wont stage a turnaround to the highs of 2021 even after the Fed slows or ends its rate hikes. The proportion of their overall stock holdings devoted to this segment was higher than the corresponding weight of technology stocks in the market portfolio. Over our sample period 1998 to 2000, hedge fund portfolios were heavily tilted towards highly priced technology stocks. A high beta coefficient signals a high-risk stock in times of a market downturn. that hedge funds were riding the technology bubble. Watsa is the founder and CEO of Fairfax Financial, an insurance conglomerate with a billion-dollar stock portfolio that's often compared to Buffett's Berkshire Hathaway. During the dot-com bubble, most tech stocks posted high beta (greater than 1), meaning their downfall in times of recession would be much more than what the average market fall would be. "As the economy continues to normalize, we expect a reversion to the mean with value-oriented stocks coming to the fore." As the value of tech stocks plummeted, cash-strapped internet startups became worthless in months and collapsed. An asset bubble has been pricked, and I dont think the. "Valuations of value-oriented stocks versus growth stocks, particularly technology, have never been so extreme, exceeding even the extremes of the dot-com era in 2000," Prem Watsa said. In 2022, the tech-heavy Nasdaq 100 Index ( NASDAQ: QQQ) is down 28, and many tech stocks are down more than 50-90+. The bubble in today’s stock market isn’t in hypergrowth tech stocks. Prices have meaningfully declined and have given up most of. A billionaire investor dubbed the "Canadian Warren Buffett" has warned technology stocks are more absurdly overpriced than during the dot-com bubble - and predicted they will suffer a dramatic decline. The charts below show the performance of a basket of emerging tech bubble stocks (what we call the 'bubble slice') versus the S&P 500. ![]()
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