Always Invert To Get It Straight

The life-changing pandemic has altered our daily routine as social distancing guidelines have led to a more virtual existence. My usual meetings with The Sage have turned into video calls. We have both learnt to adapt to this new normal. Last week as we sat for our usual discussion, he threw his usual gambit at me, “My grandnephew John’s employee stock options are vesting. What would you advise him? Give me an assessment.” I knew this was just a test, he knows more about all asset classes, their correlations and market cycles than most experts in the world. The grandnephew John, based in the US, was working at a new economy company that had listed its shares last year. I had the data on the company on Bloomberg. Share price $209, 52 week high low $68-219, PE not relevant as it is still a loss-making company, Price to Book 45 times. As I rattled off the numbers, The...