The creator sold PayPal due to a loss of trust in management, despite the company still being profitable and undervalued.
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Stocks to Sell Before It's Too Late
The creator discusses the psychological aspects of investing, emphasizing the importance of not selling stocks solely because the price has dropped, as long as the company's fundamentals remain strong. The video analyzes several companies, including Palantir, Mercado Libre, Robinhood, Meta, Micron, Rocket Lab, Shift4, The Trade Desk, and PayPal, to illustrate when selling might be justified (e.g., deteriorating fundamentals, loss of trust in management) versus when holding or even buying more is advisable (e.g., strong revenue growth, stable fundamentals despite market downturns).
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Tickers discussed in this post
The Trade Desk is experiencing headwinds and slower growth, making it a hold for those willing to wait and see if management can prove doubters wrong.
Shift4 is a hold due to its strong revenue growth despite recent stock price corrections caused by acquisitions and conservative guidance.
Rocket Lab is a hold due to strong future potential and management execution, despite current high valuation and potential delays in Neutron launches.
Micron, a cyclical company, shows strong current metrics above previous peaks, suggesting a hold or taking profits if uncomfortable with timing the cycle.
Meta's significant stock price drop was due to declining free cash flow, but with revenue accelerating and fundamentals not worsening, it's considered a hold.
Robinhood's stock price recovered due to accelerating revenue growth, making it a hold if the business is improving.
Mercado Libre's stock price follows its strong revenue compounding, making it a hold despite recent corrections.
Palantir's stock price followed its accelerating revenue growth, suggesting it's a company to hold as long as fundamentals remain strong.
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