Still shorting LNKD on CAPS? Ouch.
Yup, LNKD continues to show the world what a freaking great company they are. Are they overvalued? Maybe. Should you bet against them?
Being a value investor for so many years, i became curious about high growth stocks. Long nights researching many high growth companies led me to some simple truths.
#1 Forget about P/E ratios - I don't care if the company has a P/E of 2,000,000 or 0.065 - don't consider it. Good examples - LNKD and ATW.
#2 Do a basic health check - Always check cash flow, cash and debt. Smart growth companies know that they need to balance their checkbook at some point.
#3 Love - To properly invest in a high growth comapny, you've got to love their business model. I love LNKD. Their business model just makes sense to me. Same with ATW. If you are thinking of investing in a high growth company, just ask yourself a simple question. Do you think their product is amazing?
I am long on ATW and LNKD.