The greater fool is the person who buys a stock because the price is just going up and is willing to pay higher price than the previous person.
Typically this happens after the stock just keeps rising for some time and there is a fear of missing out!
The greatest fool is the person who is last in the buyers queue, and will pay price that will tempt enough sellers to outweigh the number of buyers and will start a wave of selling!
The 2CentView model is designed to make you understand whether you are paying a cheap, fair, expensive, or very expensive price for a stock – by comparing the 5Y implied growth versus the consensus growth rates over a 5 year period (the IGG ratio).
<.75 = cheap
1x = fair = 90 (the fair value of the stock)
1.5x = expensive = 135
> 2 = very expensive > 200
Consensus growth rate for $NVDA is 20%,
If you pay above 1.5x i.e above 135, makes sure you know the company really well, believe in the company long term, and are prepared for pull backs – Don’t be the greatest fool i.e. buy the stock at at peak level just because it is going up every day!
2CentView sold trading position at 135 and has a core position. Long term $NVDA Could match the market cap of Intel.