You want revenge? Try 'revenge investing'!

Here's our chance for a little revenge.

A man in a suit plays air guitar at his desk like a boss.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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!

Motley Fool contributor Scott Phillips has positions in Berkshire Hathaway. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway and Super Retail Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Motley Fool Take Stock

surprised shopper, unexpected news, person at computer with payment card,
Motley Fool Take Stock

Afterpay increasing credit limits… what could go wrong?

At the risk of being called Grandpa, I’m from the ‘spend what you can afford or have already saved’ camp.

Read more »

a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.
Motley Fool Take Stock

I wish I'd known this decades ago

What would I tell my younger self?

Read more »

A little girl wearing a gold crown sulks and pokes her tongue out.
Motley Fool Take Stock

Alchemy? Nah, Fool's gold, instead!

We hope you enjoyed our little joke.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Motley Fool Take Stock

Why are bank shares up so much?

While we can speculate on the answer, I’m not sure the speculation is useful.

Read more »

Model house with coins and a piggy bank.
Motley Fool Take Stock

'Housing AND Super', not 'Housing OR Super'

Yeah, but a home is more important than super, right?

Read more »

A man wearing thick rimmed black glasses and a business shirt with red suspenders sits at his desk sorting through the earnings report of Nickel Mines
Motley Fool Take Stock

One big lesson from earnings season

There is a lot to take in.

Read more »

Australian notes and coins surrounded by a calculator and the word super spelt out.
Motley Fool Take Stock

A simple fix for superannuation

It's time to return Super to its original purpose, to remove the complexity and to stop it being used as…

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
Motley Fool Take Stock

Buffett's latest thoughts on business, investing and Berkshire

Whenever Warren Buffett speaks, or writes, I pay attention.

Read more »