RE:RE:RE:RE:RE:RE:RE:RE:As always, Supreme gains the LEAST in this rally A good post as usual, Opt. In my eyes, Supreme has taken a solid roadmap and been executing well on that. They've worked to build and refine their competitive advantage + brand, and have started making strategic moves to help secure and expand that advantage, while trying to maintain a strong balance sheet.
I agree with most that you have said. I also think that they've given themselves a bit of room to work with in their guidance, even if that's under pressure now. I'll be looking forward to seeing if they can prove that things are on the right track and keep making solid strategic decisions. This is the company in the sector that has piqued my interest the most, and I'll be watching diligently to see if they can shake past mistakes towards a brighter future.
Still, the market is a fickle beast and it's responsible to always remember that performance won't always guarantee return, or more specifically, and oversized return. A lot depends on market conditions, perception and the performance of competitors. I always try to base the weight in my portfolio to what is going to have the highest probability of an oversized return.
Even in the best case scenario, if all ends up well and good, Supreme's valuation may still lag behind their performance, and their peers. There are a lot of factors to consider when deciding how to properly allocate your portfolio and compensate for risk. The most important thing, to me, is to establish a strategy focused on risk-adjusted returns to meet your goals, and then relentlessly take in any and all information necessary to ensure your investments are meeting the standards of this strategy.
Investors must remain diligent, knowledgable and agile. It's difficult to gauge how all the pieces fit together into a bigger picture, but the only person who can solve that puzzle is you. As usual, I don't mean to patronize, but I always try to keep everything in mind as best I can, and express that to anybody reading.
JMHHO as well,
-Dubby