Old West Investment Management Q3 2020 Investor Letter

 Link:

Where does the market go from here? Hard to say, but look at these eye-popping returns of

certain stocks since January 1:

PAYPAL + 77%

TESLA + 422%

NVDIA + 120%

APPLE + 54%

These returns are for the first nine months of 2020. One has to ask: have these businesses improved that much in nine months, or is the market forming a bubble ala 1999? In determining whether the market is in bubble territory, I love a quote from legendary investorSir John Templeton: “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.”

The returns shown above, in my opinion, smack of euphoria.