People often worry about short term price fluctuations even with big tech companies. History often reminds that people who has been continuously engaged with companies like Amazon, Microsoft , Google or Facebook has gained tremendous amount of money . They did not lose their hope during their downfalls and hence end up becoming a clear cut winner. People who dumped such companies had a deep compunction. Even today’s drop in shares of Alphabet (when it reverberate by less than 20% )will become a matter of concern on bunch of investors but this will not matter when we are looking in the long term goals. When the shares of Apple goes down, everyone start losing their trust on the company but it eventually become a winner in the end. Same happened with Facebook when it get impacted with data privacy scandal but eventually it will not matter when it is dealing with over 2 billion people and more than 1 billion as active users. Amazon’s problems were even comprehendible. The tech giant were about to enter India’s market faced problems due to changed policies . But do Jeff Bezos changed his strategy? He just figured out another way to win. He adjusted the gross margin pressure.
The lesson to be learnt here is
Don’t get distracted by short term fluctuations that can vanish overnight. Of course it does require patience when you are dealing with something in the market but focusing on long term goals company’s goals is more a valuable decision.