As valuations for some of the world’s largest tech companies are being questioned as expensive by some sceptics, I am reminded of a conversation from early 2020, when the terms “lockdown” and “social distancing” were largely unheard of.
My meeting with a chief investment officer was coming to an end. We were discussing Tesla. Its prospects were finally being recognised by the market and being rewarded with massive share price growth. He leaned across the table and said, “tell me you have been selling your shares”.
What struck me was not his belief that we should sell, rather that he appeared to hold it with such absolute certainty. His assertion had nothing to do with the company itself, but rather his ingrained belief that when a share price goes up a lot, you should sell. This was common sense. To do different would be foolish, greedy and undisciplined.