Ken Fisher Debunks Common Myths About Valuations in Technology Stocks

Some investors are worried that current valuations of technology stocks are unsustainable and could signal upcoming turbulence in that sector. In this video, Ken Fisher, investor and founder of Fisher Investments, looks at valuations on tech stocks and examines what they can—or can’t—teach investors about the future.
Ken thinks technology stocks, at current valuation levels, aren’t particularly cheap, but they’re not particularly unreasonable either. Moreover, Ken describes how over intermediate and long periods of time, valuations offer little predictive value. Ken relates an idea from famed investor Warren Buffett, that in the short term the market is a voting machine—that is, the market acts like a popularity contest. However, in the longer term, according to Buffett, the market is a weighing machine—meaning it judges true value. This helps clarify why valuations may be instructive in the short term, but offer long-term investors no real insights as to a stock’s long term value.
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[ghalibkhan]

these few minutes are so densely packed with knowledge

[danielsales]

Free knowledge from the great ken indeed

[hzuopvi]

Thank you for your opinion and insighting sir !

[ryantinney]

I come here for the hand signals and stay for the knowledge. Thank you Mr. Fisher.

[rossofilmsinternational]

Ken at his Best. A Genius Investor. Who always brings insight into the fold

[leesy]

Appreciate your knowledge sharing from korea

[hans]

I always thanks for your video it is really useful for me from korea

[londonstoneinvestments]

very useful comments, absolutely true that in the short term price discovery has little to do with fundamental valuations. However there's no getting away from the fact that high growth stocks are more likely to correct and correct much harder after the sharp inclines seen in 2020. The 10 year treasury yield pushing higher (currently at 1.62) knocked 35% of the value of Tesla in 2 weeks. Scottish Mortgage Investment Trust (which holds Tesla + tech stocks) also fell 20-30%. The best strategy now I believe is to pivot out of growth stocks to value stocks because 1) inflationary pressures will likely push up Treasury yields having a larger negative impact on high PE stocks and 2) economy is opening up which is more positive for value stocks and relatively less positive for growth stocks.

[rossofilmsinternational]

Ken ! I m loving this abstract sweater brother !