novel ideaWhen earnings are announced prior to market opening on Thursday, that we examine the numbers. The numbers do not lie. Maybe we can ignore the daily price changes on Thursday trading and focus instead on the health of the company. Ask ourselves whether there is any merit to the hypothesis that WELL was a pandemic phenom and is going to fade away as COVID restrictions are lifted. My prediction is that with these numbers, as with previous numbers, there will be absolutely no support for that hypothesis. Rather, the numbers will show a young company experiencing extreme growth, approaching profitability, and forecasting a brilliant future.
For those who will only care about the market action on Thursday, based on "the market is always right", I would remind you that the market is simply made up of other people and institutions. When you continually defer to the market, what you are saying is, the average of what everyone else has to say must be right and I must be wrong. In other words, I cannot be trusted to assess this business on my own. I must always defer to others. Not a good investing strategy and not a good way to live your life.