Episodes

Why This Week Was FAANG’s Turn to Suffer

Episode #78 | November 21, 2018

Episode #78 | November 21, 2018

Why This Week Was FAANG’s Turn to Suffer

In This Episode

As the selloff continues, a lot of familiar names are making history in the worst kind of way.
Facebook is on track to post its longest losing streak ever, with its third straight month in the red. And while a recent New York Times report savaging its top management won’t help any, Dan Ferris notes that value investors still like the company – if they’re willing to wait 2-5 years.
But Facebook is far from the only big name on the run.
Bitcoin’s latest crash has brought it 9% below the $5,000 mark, and Nvidia suffered a $25 billion valuation wipeout after its earnings debacle.
Even nimble options plays are having a hard time navigating the choppy markets, as optionselers.com went dark after its catastrophic loss in NatGas.
So, which selloffs are opportunities – and which are just the beginning of something far worse to come?
Dan Ferris has the same warning:
“These “best businesses” – they will not save you.”
Later on, he and Buck are joined by this week’s special guest. Whitney Tilson was the founder and Managing Partner of Kase Capital Management, which manages three value-oriented hedge funds. Whitney is also the co-founder of Value Investor Insight, an investment newsletter. He has co-authored two books, The Art of Value Investing: How the World’s Best Investors Beat the Market and More Mortgage Meltdown: 6 Ways to Profit in These Bad Times.
In weeks like this one, his advice is especially pertinent – most of all when some historical perspective is called for.