APT 0.00% $66.47 afterpay limited

Goldbull you need to have a more open mind about investing.AMP...

  1. 108 Posts.
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    Goldbull you need to have a more open mind about investing.

    AMP and Perpetual are traditional value investors. That’s not a good thing or a bad thing, but they’re talking their book mate.

    This unprofitable argument - it was the exact same thing all the value managers said about Aconex. While factually true it misses the vital point that a profitable core (Australia) is used to fund overseas expansion.

    So many Australian instos were short Aconex for these exact reasons and then boom, Oracle buys it out at a massive premium.

    A lot of domestic instos learned a lesson then, and that’s now why fundies like IFP are just saying to Afterpay, go spend as much money as you need to grow internationally, we’ll back you.

    No one is arguing Aussie tech has overcooked it a bit - blind Freddy could see everyone crowding in there because it was assumed Australian domestic cyclicals were going to slowdown under Labor. Now that the landscape is changed you’re getting a rotation out of secular growth into the domestic cyclicals. It’s just a rebalancing. I personally sold my Wisetech to fund AFG for instance on Monday. But I’m hanging onto my APT as it’s blatantly clear they have the best network effect in the BNPL space, and analysts are terrible at modelling long term network effects.

    Ignore AMP and Perpetual. Tech isn’t their space. At least Warren Buffet is wise enough to say he doesn’t understand tech and so won’t invest in it, but wish he did as he knows it was a mistake missing Amazon (yes I know BRK now owns some)
 
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