beentheredonethat
Well-Known Member
Also one last point. When you look at Netflix, it has a PE of 172. It has a market cap of 40 Billion. Compare that to UPS, it has a PE of 29.34 and a market cap of 90 Billion. Do you really think Netflix is worth a little less then half of UPS? Disney which owns ABC\ESPN\Pixar\Marvel etc has a PE of 23.7 and a market cap of 186 Billion, is Netflix worth more then 25% of Disney? Keep in mind, in the short term, anything can happen. It's possible it could do quite well for short term. In long term there's a chance it will do well too, but a much bigger chance that people will switch to something different or to a competitor. I know for myself I've been trying to convince my wife to drop Netflix and only use Amazon Prime for video streaming. I think once my son is off to college we will and probably drop satellite as well and pick up HULU Plus. I was hoping the company AEREO would have won their lawsuit for over the air signals via the internet for your local company. To me, for SMA, I will invest in a handful of what I consider high quality companies that will endure a downturn. BRK.B is one "stock" I have. Mostly though, I have index funds or ETF funds to spread the risk among multiple companies.
