Wow. What a bad day. I can't add any exclamation mark. Because I'm not happy. I prefer to remain as stoic as possible.
Paypal is down 25% today.
Facebook is down 23% in after hours.
Both represented about 15% of my total portfolio at the beginning of the week. So, these two stocks have a negative 4% impact on my portfolio.
That's a lesson for people praising and applying concentration. That's a lesson for me.
Now, a little comment: I agree with the Paypal drop today. Because Paypal was expensive and priced for a high growth. It looks like there won't be that much growth this year. Maybe no growth at all. Who wants to pay 40 times earnings for a stock that doesn't grow?
On the other hand, I don't understand why Facebook is punished that much. If the drop still is 20-25% tomorrow, Faebook will be priced like Kellogg's (PE: 16-17), a company that grows about 3% a year with margins much lower.