Nathaniel Thiele

I wanted to write this short article about why sometimes the stock is not the company and the company is not the stock.

One thing to be clear is I have no position in any of the stock I mention in this article. Stocks always underperform for a period of time.

For example between 1970-2019, Berkshire Hathway underperformed the market 1 out of every 3rd year. Long-term Berkshire Hathway beat the market, however in the short term, it didn’t.

Zoom has recently lost a large amount of market value. Part of the reason why the stock was overvalued was because of lockdowns and other events. However, the real value of zoom is low. Zoom has mainly one product with a large number of free users and very little monezation.

Compare that to energy company Chevron. No matter your stance on climate issues. Oil is needed for a variety of nonfuel uses. People need oils for plastic and polymers.

Chevron was beaten up because of the price of oil and because integration owns midstream and upstream pipelines. It also owns refiners. In the oil space, it is the second-largest in the USA. Chevron as a company was undervalued and more attractive than Zoom.

I have no positions in mentioned securities.