Revenge, apparently, is the new black.
Are you ready to take a little revenge on the stock market???
Sounds kinda aggressive, huh?
And a little… unhinged?
Fair enough… but stick with me.
See there have been a lot of reports in the news over the past few weeks (and I noticed a couple just in the last 24 hours) about 'revenge'.
The first, was a huge jump in sales at Super Retail Group Ltd (ASX: SUL) – 15% growth in the first half, if you don't mind – from what the company's CEO describes as 'revenge spending' – the idea that, after all of the disruptions and restrictions of the past few years, we're letting the purse strings loose and buying up big.
The second, was 'revenge travel' that's seeing airlines regularly at or near capacity (and which has, in large part, driven Qantas Airways Limited (ASX: QAN)'s share price 45% higher over the past six months).
Virgin's private equity owner, Bain Capital, is apparently – and not surprisingly! – considering re-floating the company on the ASX to take advantage of the surge in traffic, and the expectation that the airline will turn a profit this year.
As I said, above, 'revenge' certainly seems to be the new black.
But what about investing?
Well, if you've been investing over the past 12 – 18 months, there's a very good chance your portfolio hasn't done as well as you'd hoped. Sure, the Energy sector did extraordinarily well, but most others were fair-to-middling… or worse.
And that goes double for investors in businesses considered to be 'growth' or 'tech' companies.
And so?
And so, here's our chance for a little revenge.
Not because I know what's coming, this week, or this month, or this year.
But because I reckon the future is bright for Australian listed companies.
And I reckon prices are pretty attractive for many of those businesses.
Which means, we might get a couple of shots at 'revenge'.
We get to buy shares of some companies at a much lower price than their recent highs.
And, if I'm right, we might also have an opportunity to make some good money – because if they are cheap, there's a very good chance those share prices go higher, over the long term.
Don't get me wrong – I enjoy a bit of retail therapy. But there's only so many things that are worth buying.
But revenge investing, done well, can pay off for a long, long time.
Imagine buying shares of Berkshire Hathaway (I did) or the banks (I didn't) during the depths of the GFC?
Imagine buying shares of some of the big – temporary – losers during the COVID crash (I bought some and missed others!).
But even if you missed those periods, just imagine how much your money might be worth, in 5, 10, 15 or 20 years (or longer, if you're lucky enough to be young!) if you invest well, today.
By all means, enjoy your revenge spending and revenge travel.
But if you want real revenge – life-long, value-creating, spend-and-spend-again revenge – try revenge investing instead!
Fool on!
