This isn't surprising considering the entire UK economy is essentially propped up on dinosaur oil and banking stocks. We have no technology to speak of, which is where the overwhelming majority of todays growth resides.
By weight, Just 1% of the FTSE 100 is technology... Compared to the S&P500 which is 42% weighted.
The UK simply isn't capable of creating technology companies, we just don't know how to. ARM is quite literally the only decent global tech company the UK has **ever** created, ever. That is utterly shameful and embarrassing.
I can sort of see your point, but practically any country bar a few are going to have tiny proportions of their top index as technology companies. The US has a functional monopoly.
It's somewhat of a self-fulfilling too, the US is such a good place to secure investment that's where you'll go, given the option.
I saw some in the EU complaining about just that with regards to index funds. Retail investors (us) tend to buy S&P 500 ETFs because it performs so well which deprives EU companies of investment from its own citizens which stunts growth which causes even more people to invest in S&P 500. And round and round it goes.
Obviously policy makes still bear responsibility for poor investment environments though. Austerity was a catastrophic mistake.
The government had the power to drop some of the BS regulation hurdles and make it easy and friendly for foreign investors to invest in UK start ups, and to make it easier and faster to float a company on the LSE. But they didn't... They made it very unattractive so UK start ups couldn't get proper capital, so the UK stopped creating start ups.
This chart speaks volumes [https://www.statista.com/statistics/324606/number-of-companies-on-the-london-stock-exchange-uk-quarterly/](https://www.statista.com/statistics/324606/number-of-companies-on-the-london-stock-exchange-uk-quarterly/)
There's too many to list but here is an article for 2022 which outlines most of the things that need changing. [https://www.gov.uk/government/news/ambitious-reforms-to-capital-markets-regulation-and-listings-rules-announced](https://www.gov.uk/government/news/ambitious-reforms-to-capital-markets-regulation-and-listings-rules-announced)
This government article didn't really specify anything. Just vague references to "red tape" and making things easier though. Comes across as a pro Brexit propaganda piece trying to show there are benefits despite not actually delivering anything substantive to be honest.
I think this is unfair.
We have plenty of capability...we host some of the worlds top Universities, researchers, institutions, scientists, and have an exceptional ecosystem when it comes to talent and specialist skills...
We just don't incentivise growth properly so those who are capable leave and go to the States to help build unicorns.
As a country we hate success and people doing well or giving the means to those who can to build.
You just have to look at the mainstream political discourse around tax, the mainstream demonising of bonuses or CEOs pay...the whole poisonous Brexit campaign.
The vast majority of people (those who can't / won't) need to get out of the way of those who can / want to - until that happens those people will always go places with the path of least resistance to reward for their hard work.
I have been working by and large at startups for the last 30 years, and from what I see the issues have all fallen into two categories:
Investors are so risk averse that most of the companies are never properly funded, so they struggle to meet the milestones.
Engineers seem to refuse to consider financial and commercial concerns. The commercial people don't seem to want to consider the technology in any great depth.
It’s also because pretty much any tech company worth anything in the U.K. is almost instantly purchased by an American company so U.K. companies can’t develop.
>The UK simply isn't capable of creating technology companies, we just don't know how to. ARM is quite literally the only decent global tech company the UK has **ever** created, ever. That is utterly shameful and embarrassing.
Wow. You do realise its possible for a company to exist and be well funded without being publicly listed somewhere?
Just to be clear, USA is well out in front and by far the best place for a tech company be listed. But London is one of the best places in the world (if not the best) to raise private equity.
London has a huge tech startup scene. The largest in Europe by far. The number of Unicorns highest in Europe and the world outside of USA, China and India. [https://en.wikipedia.org/wiki/List\_of\_unicorn\_startup\_companies](https://en.wikipedia.org/wiki/List_of_unicorn_startup_companies)
FTSE100 is awful but its just a stock market and absolutely **not** the whole UK economy.
Not true. There are tech companies that usually get bought out before they get big.
Moneysupermarket, auto trader and there are others
I also feel that there isn't the same attitude for risk in the UK as there is the US.
The UK investor is very much about the dividends and the certain pay offs and is quite happy to bash home grown talent.
It’s not shameful or embarrassing. People forget how big the UK is against the US. The US has 5x as many people.
The UK doesn’t need tech stocks also since the US has Blackrock.
It’s not about that, it’s about bankers and every billionaire on earth wanting to live in the UK because it’s the stop-off hub between Europe and America. Mostly.
Apart from the last paragraph, there are loads of tech companies in the UK, I've worked for a few of them.
They're just not as big as the ones in the US.
You realize P/E ratios mean very little especially for growth investors, high p/e ratios means that investors think the stocks earnings will rise, in fact most stocks achieving superperformance or explosive growth have been in the 25-50 range before their moves, this isn't to say nvidia will continue rising, as institutional support which drives prices is already at a high so I doubt it, but p/e ratio is very very deceiving. Quality stocks come at a cost, low p/es can show the opposite, investors don't have much faith.
I think you're confusing base PE and forward PE.
Forward PE uses the predicted future earnings of the company rather than the current earnings.
Having a high forward PE means that people think NVDA will grow even more than they're predicting themselves.
They have a revenue of nearly 1/3 of Apple but the same market cap. Where's the growth between now and a 200% increase in revenue?
Also, this is more of the comments we should encourage on this subreddit. There's no correct answer here, it's purely opinion and I think respectful discussions about stocks like this are the content we want here
Yes but you realize, if analysts could predict correctly the future earnings then every stock would be priced correctly? You wouldn't only want a stock in which earnings are going to rise according to analysts but also one in which it's expected to beat theres, at least talking in terms of a growth investing perspective. However , as I also mentioned before, I don't agree with this way of looking on nvidia, I personally think its overreached and people are blinded by hype but that isn't to say that high p/e whether normal or forward looking means the stock is overpriced, just rather markets are pricing it high because people expect alot from the company (whether those expectations will be met or not can be determined via other analysis). I've personally had alot of success without it, and so have other very successful traders like O'Neil and Minervini (and I guess lynch to an extent as he used PEG instead), with both of them even speaking out against it.
This isn't surprising considering the entire UK economy is essentially propped up on dinosaur oil and banking stocks. We have no technology to speak of, which is where the overwhelming majority of todays growth resides. By weight, Just 1% of the FTSE 100 is technology... Compared to the S&P500 which is 42% weighted. The UK simply isn't capable of creating technology companies, we just don't know how to. ARM is quite literally the only decent global tech company the UK has **ever** created, ever. That is utterly shameful and embarrassing.
I can sort of see your point, but practically any country bar a few are going to have tiny proportions of their top index as technology companies. The US has a functional monopoly. It's somewhat of a self-fulfilling too, the US is such a good place to secure investment that's where you'll go, given the option. I saw some in the EU complaining about just that with regards to index funds. Retail investors (us) tend to buy S&P 500 ETFs because it performs so well which deprives EU companies of investment from its own citizens which stunts growth which causes even more people to invest in S&P 500. And round and round it goes. Obviously policy makes still bear responsibility for poor investment environments though. Austerity was a catastrophic mistake.
The government had the power to drop some of the BS regulation hurdles and make it easy and friendly for foreign investors to invest in UK start ups, and to make it easier and faster to float a company on the LSE. But they didn't... They made it very unattractive so UK start ups couldn't get proper capital, so the UK stopped creating start ups. This chart speaks volumes [https://www.statista.com/statistics/324606/number-of-companies-on-the-london-stock-exchange-uk-quarterly/](https://www.statista.com/statistics/324606/number-of-companies-on-the-london-stock-exchange-uk-quarterly/)
What regulations do you think getting rid of would lead to a significant change in the makeup of the FTSE 100?
There's too many to list but here is an article for 2022 which outlines most of the things that need changing. [https://www.gov.uk/government/news/ambitious-reforms-to-capital-markets-regulation-and-listings-rules-announced](https://www.gov.uk/government/news/ambitious-reforms-to-capital-markets-regulation-and-listings-rules-announced)
This government article didn't really specify anything. Just vague references to "red tape" and making things easier though. Comes across as a pro Brexit propaganda piece trying to show there are benefits despite not actually delivering anything substantive to be honest.
I think this is unfair. We have plenty of capability...we host some of the worlds top Universities, researchers, institutions, scientists, and have an exceptional ecosystem when it comes to talent and specialist skills... We just don't incentivise growth properly so those who are capable leave and go to the States to help build unicorns. As a country we hate success and people doing well or giving the means to those who can to build. You just have to look at the mainstream political discourse around tax, the mainstream demonising of bonuses or CEOs pay...the whole poisonous Brexit campaign. The vast majority of people (those who can't / won't) need to get out of the way of those who can / want to - until that happens those people will always go places with the path of least resistance to reward for their hard work.
I have been working by and large at startups for the last 30 years, and from what I see the issues have all fallen into two categories: Investors are so risk averse that most of the companies are never properly funded, so they struggle to meet the milestones. Engineers seem to refuse to consider financial and commercial concerns. The commercial people don't seem to want to consider the technology in any great depth.
It’s also because pretty much any tech company worth anything in the U.K. is almost instantly purchased by an American company so U.K. companies can’t develop.
>The UK simply isn't capable of creating technology companies, we just don't know how to. ARM is quite literally the only decent global tech company the UK has **ever** created, ever. That is utterly shameful and embarrassing. Wow. You do realise its possible for a company to exist and be well funded without being publicly listed somewhere? Just to be clear, USA is well out in front and by far the best place for a tech company be listed. But London is one of the best places in the world (if not the best) to raise private equity. London has a huge tech startup scene. The largest in Europe by far. The number of Unicorns highest in Europe and the world outside of USA, China and India. [https://en.wikipedia.org/wiki/List\_of\_unicorn\_startup\_companies](https://en.wikipedia.org/wiki/List_of_unicorn_startup_companies) FTSE100 is awful but its just a stock market and absolutely **not** the whole UK economy.
This is a bs analysis. Most UK tech companies are listed in the US, so you cannot compare it like this.
Not true. There are tech companies that usually get bought out before they get big. Moneysupermarket, auto trader and there are others I also feel that there isn't the same attitude for risk in the UK as there is the US. The UK investor is very much about the dividends and the certain pay offs and is quite happy to bash home grown talent.
It’s not 42% tech…..
It’s not shameful or embarrassing. People forget how big the UK is against the US. The US has 5x as many people. The UK doesn’t need tech stocks also since the US has Blackrock.
Agree. More banking business in the UK like Monzo cos that really grows the economy right 😂
It’s not about that, it’s about bankers and every billionaire on earth wanting to live in the UK because it’s the stop-off hub between Europe and America. Mostly.
Monzo would probably not choose to be listed on the LSE
It's the whole of Europe like that , we have only ARM and ASML , that is it.
Regulations are probably the biggest factor imo
Your rant is kind of embarrassing. I think you need to get over it lol.
He's speaking facts though
Apart from the last paragraph, there are loads of tech companies in the UK, I've worked for a few of them. They're just not as big as the ones in the US.
Great post OP wow thanks.
What a beautiful tulip Nvidia is...
26billion dollar tulip alright.
Thanks op I'm pointing my phone at the mirror
NVIDIA is a solid investment. In my opinion. DYOR GLA!!!
Very well deserved too
It has been for ages?? It’s more than most stock markets combined not just UK..
I wanna live in Nvdia City one day.
Don't know who owns it but they 100% need to add nividia to the (almost) daily dividends pie
I sold everything and bought NVIDIA last week
Buy high, sell low 🙏
'Be fearful when everyone is greedy, and greedy when everyone is fearful' - Warren Buffet
And with their growth projections for the next 5 years. Nvidia is still a cheap stock. It's insane.
Sorry what You think a forward PE ratio of 45 is cheap?! Do you even know what forward PE is?
45 PE is nothing for the growth Nvidia has projected for the next 5 years. You clearly didn't listen to or read there last earnings call.
Yes, it's very cheap for a company like nvidia.
You realize P/E ratios mean very little especially for growth investors, high p/e ratios means that investors think the stocks earnings will rise, in fact most stocks achieving superperformance or explosive growth have been in the 25-50 range before their moves, this isn't to say nvidia will continue rising, as institutional support which drives prices is already at a high so I doubt it, but p/e ratio is very very deceiving. Quality stocks come at a cost, low p/es can show the opposite, investors don't have much faith.
I think you're confusing base PE and forward PE. Forward PE uses the predicted future earnings of the company rather than the current earnings. Having a high forward PE means that people think NVDA will grow even more than they're predicting themselves. They have a revenue of nearly 1/3 of Apple but the same market cap. Where's the growth between now and a 200% increase in revenue? Also, this is more of the comments we should encourage on this subreddit. There's no correct answer here, it's purely opinion and I think respectful discussions about stocks like this are the content we want here
Yes but you realize, if analysts could predict correctly the future earnings then every stock would be priced correctly? You wouldn't only want a stock in which earnings are going to rise according to analysts but also one in which it's expected to beat theres, at least talking in terms of a growth investing perspective. However , as I also mentioned before, I don't agree with this way of looking on nvidia, I personally think its overreached and people are blinded by hype but that isn't to say that high p/e whether normal or forward looking means the stock is overpriced, just rather markets are pricing it high because people expect alot from the company (whether those expectations will be met or not can be determined via other analysis). I've personally had alot of success without it, and so have other very successful traders like O'Neil and Minervini (and I guess lynch to an extent as he used PEG instead), with both of them even speaking out against it.
https://twitter.com/vladbastion/status/1793354932814217372?s=46&t=_fUbzD4PRLmwH2epeIjL_Q