Seriously, all is good in the hood. Having said that, it was no easy task, emotionally, going long you know what after...all that's happened.
Dear Partner: We established a position in Netflix yesterday after the stock crashed 35%. We will discuss it at greater length in our monthly letter next week, but in case you read about it before then, we wanted to assure you that we haven’t lost our minds. We simply think it’s a good company and that the market has over-reacted to all of the recent negative news, thereby providing us the chance to own it at a cheap price. Given our unsuccessful timing of being short this stock – a highly frustrating experience – we’ll admit that it was hard to overcome the emotional baggage and think about Netflix with a fresh perspective, but as we wrote to you in last month’s letter, for every investment decision, we simply ask ourselves: if we were starting our fund from scratch today and held only cash, what would we do? In this case, the answer is that, at this price, we’d own Netflix.
On that note, can this be a new thing? The 'we haven't lost our minds email,' à la:
We're going to get into the position we took in Domino's (DPZ) in our letter to investors next week but in case you read about it beforehand, just wanted to put it out there that I am completely compos mentis, in case that was in question.