COST Reddit Mentions | ChartExchange

I agree with what you're saying in theory but no one knows the future growth potential in a matter of facts if we're being honest.

Amazon was trading at crazy valuation as a retail business only to blow everyone out of the water with AWS. If you had sold cause the multiple expanded and you didn't think Retail was worth that, you'd have missed the rally of AWS. Good companies find ways to grow or adapt.
MSFT was considered dead in the water around the mobile era with growth looking shaky and look at them now? Perhaps the strongest company in the world. Good companies find ways to grow and adapt.
AAPL has reinvented themselves multiple times to reignite growth from MAC, to ipod, to iphone/airpods/etc. Good companies find ways to grow or adapt.

Facebook was supposed to end after Cambridge Analytica scandal and begin their demise. That drop to $90 has seen it now reach $600.

Crwd turned the whole world off after being valued to near perfection and lost 50% of its value, today it's near ATH again at insane multiples.

These events could lead one to believe future growth will be affected but could isn't a confident position to buy or sell from. Even crazier is WMT has doubled since 2018 and COST has tripled. That kind of multiple expansion wasn't any more foreseeable than growth potential. Visa and MA have been overvalued for years and yet it has never stopped going up. All these examples are to say that when you have a good company at a good value, you should hold on to it rather than worrying about whats happened to the stock price or multiple. What one should be concerned about is the multiple at which they own the stock cause thats what matters.

If you buy a Mcdonalds store that makes 1m a year for 5m and I buy a mcdonalds that makes 1m a year for 2m, then we're not in the same boat and I'm going to have better returns over the long run with a huge margin of safety even if theres no growth coming for either of our stores.
NVDA went from generating revenues on a video gram graphics card, to adding bitcoin mining rig revenues, and now is a top AI gpu supplier on top of all that. I can't tell you how many times people said it was overvalued since I bought. Today after all the splits my average is 16.55 which is 5x earnings on NVDA. At that point what does it matter to me if it's trading at 1000x. The companies profits could stop increasing and that wouldn't change my safe and profitable position at 5X.

Currently if you look at Pepsi one could say the same that the growth potential isn't there but good companies adapt. Recently Pepsi bought Poppi, Siete, partnered with Sabra and Celsius, this is a move towards growing their healthy food offerings, will it work, will it not? Who the fuck knows lol but those who buy today and see it rise will feel confident in their ability to assess future stock prices and if the stock falls those who didn't believe in a turnaround will rejoice, but neither party actually knows what will happen, they just take credit for the results and assume they knew what would happen. At the end of the day though everyone should do what works best for them, I just thought it was worth adding another perspective to this idea you shared that I agree with wholeheartedly but in practice have found to be less helpful as each case is different and predicting the future growth is no different than trying to predict the future period.

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