Finance & Fury Podcast

Welcome to Finance and Fury, the Say What Wednesday edition.  Today's question comes from Mike - "Hey Louis, Wondering if you think buying Tech shares are worthwhile"  We have the FANG and the WAAAX – US – FANG - Facebook, Amazon, Netflix and Google Aus – WAAAX - Wisetech, Afterpay, Altium, Appen, and Xero (known collectively as the WAAAX stocks)  Intro Find that the nature of investments is very binary – some are very for it, some against it – like BTC True with tech companies - some with no earnings profile - so polarised the local investment community Those buying into the company brand, then those buying based around values and trends   Factors – Valuations and Fundamentals – Are they a bubble or good long term holds? forward price-to-earnings ratios – Growth shares normally about 25 to 30 in AUS, USA lower at about 15-25 – for tech different FANG share - average is a 50 PE WAAAX - over 100 times forecast earnings to almost 170 times earnings for the 2019 FY The valuation premium for growth is