This Week in Startups Tech takes action against Russia, Backbone's mobile gaming device + Joel Greenblatt from Gotham Capital | E1397
Mar 2, 2022
In this discussion, Joel Greenblatt, managing partner at Gotham Asset Management and author celebrated for his value investing strategies, dives into the current stock market landscape and the increasing participation of young investors. He shares insights on finding value in today’s volatile market and tackles the complexities of taxes and loopholes. The conversation also highlights major tech companies’ responses to the Ukraine conflict and introduces Backbone, an innovative startup revolutionizing mobile gaming.
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Tech Stock Valuations
- Major tech companies like Amazon, Google, and Apple still have reasonable valuations.
- Many other growth stocks were overvalued, assuming they'd become the next tech giants.
Value Stock Opportunity
- Value stocks are currently historically cheap, offering high expected returns.
- The S&P 500 is richly priced, suggesting lower expected returns compared to value stocks.
Growth Stock Accounting
- High-growth, low-capital businesses often reinvest profits in customer acquisition, masking profitability.
- Traditional accounting metrics don't accurately reflect the value created by these investments.
