Key insights
- A value investor expresses their wishlist for a stock recommendation subreddit, advocating for a more open-minded approach to growth stocks like Nvidia, leveraging individual 'circle of competence' for stock analysis, and incorporating discounted cash flow (DCF) analysis with price targets to enhance investment discussions. The author plans to share a DCF model for Reddit, promoting more rigorous analysis.
I have been on this sub reddit for many years, and have picked up tons of stocks recommendations that did well (Especially Google recently!). Overall, I am super grateful for this sub, and I wanted to share my thoughts/views/wishlists!
- Wishlist 1: Can we not be dismissive of growth stocks (Ex: Nvidia 2.5 years back) * People hated Nvidia on this sub, not everyone, but a lot of top upvoted comments. I still invested in Nvidia primary because I saw how AI was supplanting people in some usecases, and I could see this happening with devs and even my role (my producitivity is already up like 30-40%), I could make AI bet primarily because I was it in my circle of competence * Wishlist 2: Circle of competence * This is something Buffet speaks of quite a bit. A lot of analysis/thesis here seems very broad and generalised. It would be great to have people using their circle of competence and connecting it to the macro picture. Honestly, I wouldn't mind paying like $50/100 just to get this view. Nothing like having a graphic designer or someone from an agency talk about Adobe * Wishlist 3: Science to intrinsic value * Eventually, intrinsic value is determined by DCF, which itself is prone to assumptions. I would love to see analyst style price targets etc, which will force us to model this assumptions. I think it makes for a sharper discussions, instead of my gut feel says reddit stock is going to the moon!
On (2) and (3), I will share my DCF for reddit in a few days!