Hey guys, it's sasha, the whole world seems to be ready for a huge market crash. Everybody is talking about it every single time. The market wobbles people begin speculating that the stock market is about to collapse and given how crazy the growth in the stock market has been over the last two years, a lot of people are predicting the biggest market crash we have ever seen, and some of these People are saying it's imminent, but here's the thought, even if the stock market did crash. Whenever that might happen, people say the hyper growth stocks like tesla and palantir are going to be hit the hardest.

But what if i told you that i actually expect the exact opposite to happen? What if i said that these stocks, that some people dismiss and say that are ridiculously overpriced, are actually exactly the right stocks in exactly the right spots to weather the storm, much better than the rest of the market. These ridiculous companies with stupid, high p e ratios and no profits will do much better, i think, than the safe and robust businesses that you can buy at just 10 times. The earnings sounds crazy. Well, let me explain now: everybody is telling you how every possible indicator out there is predicting a monster market crash.

The buffett indicators cost over the 200 line and seems to be going vertically straight up, which apparently indicates the market is hotter than ever before, including the dot-com crash. But warren buffett himself is not just sitting there saying this. He is sitting on 140 billion dollars worth of cash waiting for the crash to come and michael berry famous for shorting the housing market in 2008 that was made into the big short movie has been buying, puts on tesla and kathy woods, arc, invest fund and naturally Enough, if a stock market was to crash people, think that the worst affected companies are going to be these long-term growth stocks, companies that are not currently making money and whose valuation is maybe based on earnings far in the future, companies that are currently loss, making or Ones with ridiculously high pe ratios, companies like tesla, palantir, fiverr and others that i personally am invested in, but here is the problem. A lot of the commentary on why these companies are going to get hit hard is pretty basic and doesn't go into any real depth.

Now the typical argument is that the market crash will come with higher inflation. It will come with the destruction of long-term confidence and a big discount placed on the earnings in future years, so any company whose valuation is strongly based upon earnings in five to ten years time, for example, is going to lose the majority of their share price. Apparently well here is the bit that i think that these analysts are missing. Not all growth companies are the same some early stage.

Companies are not yet making money, but that's okay, because they are still developing and once they get big enough reach economies of scale reach a big customer base, yada yada, then they will become profitable well. These are not the sort of growth companies that i am talking about, because hyper growth companies have three big differences, one. They are actively investing money in accelerating the rate of growth, rather than just the growth itself. Two.

They are working at the cutting edge of new industries that are changing people's lives and three they don't follow the herd, and here is why this is really important in terms of numbers and in terms of specifics. Let me go through these points, one at a time because they are critical. Now often people don't understand the difference between growth companies that are hoping that tomorrow's business will come and those that are actively buying tomorrow's business today. Those are incredibly different types of companies, although many people will see them in the same light.

Some companies work on their product with a mindset off, build it and they will come where they is. The customers and investing in that sort of growth company carries a lot of risk and uncertainty, and some of them might do well, but they might never come they being the customers. What if the product is just not good enough? What if it fails to really solve the issues, there's a lot of question marks and any of these concerns can eventually end up killing the business, but some growth companies are actively growing tomorrow's revenues and profits every single month today they are not hoping and praying for The future they are actively buying that future today and in some cases, the rate at which they are growing. Those future revenues is ridiculously high, but because those numbers don't make it into the profit and loss statement, because those numbers don't make it onto the balance sheet.

Most investors don't seem to even notice here's a few examples of what i'm talking about. Tesla is currently building two of the biggest factories ever built on this planet that will become operational in the next few months. These two new factories in berlin and texas are much larger and much better structured than the two existing factories that tesla has that make all of tesla's cars at the moment. Demand for their cars is through the roof.

We're talking several months worth of wait times and the hundreds of millions of dollars going into building these factories means that quarterly results at the moment. Right now are suffering now the p e ratio seemed crazy. It was over a thousand only a few months ago, but now it's suddenly just 103. If you use qt numbers as the average run rate now look at palantir, they are losing money every quarter and all that i have plenty of other videos where i explain those things in detail.

So i'm not gon na go into that here. But in the background, palantir is selling three times as much future business as the revenue that they are earning within the quarter so quarter after quarter at the moment, palantir showing that they are growing tomorrow's revenue at 150 to 200 rate per year. In reality, before those numbers will actually ever show up in their p l over the next four years, but once again those numbers don't make it onto the p l, so skin deep analysts don't even see that and they're not particularly interested, it seems here's the same Effect with fiverr, they are spending every dollar they earn on marketing to book. New customers and those new customers will then go on to make six to ten times the cost of that marketing in profit over time.

Those are mind-boggling numbers. You can see it because they show you the data, but most people won't bother trying to understand the implications of some green circles on a chart and not understand that it's showing the early stages of what is an exponential growth trajectory. Now, let's talk about an even more important reason why i think these companies are somewhat immune to the long-term effects of a market crash. My investing philosophy revolves strongly around investing in high growth squared companies.

I want to invest in companies that are growing very fast themselves, but not only that i want them to also operate in an industry. That itself is also growing very fast. The reason here is that when the company is growing and then the industry within which the company is operating is growing too, then those two things can multiply to create ridiculous, long-term growth effects, and so i try to look out for companies that operate in industries that I think will be changing our lives over the next decade in a really fundamental way. Technology is ramping up at a pace that we haven't ever seen before, and that technology is going to drive that change in how we live now.

Electric cars self-driving. All of that is coming it's going to take time. I don't know when it's going to come, it's going to have a lot of bumps along the way, there's going to be lots of ups, a lot of downs, there's going to be lots of stuff happening, but one day we are going to sit back and wonder How we felt it was okay to spend two hours a day, wasting our lives by sitting there, holding a steering wheel and staring at the road ahead. That's gon na happen and tesla is going to be part of that story.

Centralized data processing will completely revolutionize how companies structure and operate their businesses and palantir is in the driving seat of that route of change, distributed, working, flexible workforce and outsourcing are completely changing. How large and medium businesses operate and fiverr is one of the big enablers of that shift. As with every major breakthrough, every big change in existing patterns, it is never a straightforward path. There are going to be a lot of obstacles, and a lot of these companies are very far from perfect.

A lot of their products are very far from perfect, but they are in the right place and they're going in the right direction and they're going in that direction faster than anybody else. And that is what matters industry, leaders that are heading into the realm of irrelevance and the media that those industry leaders finance will make a lot of noise trying to bring down the disruptors. This is normal. This happens every single time when the first iphone came out.

Steve baldwin, the ceo of microsoft, said there is no chance that the iphone is going to get any significant market share. That's a quote. We might have forgotten now, but the media was absolutely full of articles that seem to have been financed by the blackberries and the nokias of this world phones made of glass, they said, are a really dumb idea. They will never work.

Here is a cool quote that virtual keyboard will be about as useful for tapping out emails and text messages as a rotary phone. That's what the media said and all of your favorite tech publications told you why the iphone is going to be a definite marketing flaw. But here is a fact for you: companies that drive a major change in how we live lives for the better tend to win in the end. Apple released the iphone in 2007 and when the financial crash arrived only a few months later, apple took about a year to get back to his pre-crash valuation, while the stock market overall will took five years, and while a market crash will, in most cases, hit everybody's Share price: the question is: how quickly will the company bounce back and which companies are currently investing the time and the money building the pipeline? That will then generate the ridiculous levels of growth over the next five years.

That will enable that bounce back which companies are not taking it, steady, paying out relatively consistent dividends and enjoying their five percent growth per year in revenue. These are the companies that can outpace the crash sure the current valuations may seem on the surface out of touch, but when that same company's revenue increases by 200 percent, because you can already see that revenue coming through in the numbers. In the examples that i gave and then the profit increases by 500 or a thousand percent, because profit does not rise linearly with early stage companies soon after the break, even suddenly that company, with a ridiculous pe ratio of 100 based on the last quarter, might have A pe ratio of just 10 if its valuation was to stay the same, but if their share price was to say lose 50 percent of that crash, then suddenly their pe ratio would be more like five and a market crash or no market crash, but a highly Profitable company, that is growing at a ridiculous rate, will not have a pe ratio of 5 for very long, and that is what a lot of people are missing. Nothing ever repeats itself in the same exact way as before sure learning.

Lessons from history is incredibly valuable. It is critically important because those lessons can inform how we understand the future, and yes, a market crash will probably happen at some point because they always do happen eventually that's life, but i think it is easy to make the mistake of thinking that old mantras will Always hold and never change, no matter what every single market crash is different and the outcomes of those crashes are different. The situations during which those market crashes happen are different. It is easy to explain things in retrospect and say well, of course those companies came out of the whole situation better than the rest.

We knew that i was going to happen, but it can look far more difficult and far more daunting before that retrospect arrives because of the accepted popular opinion that sticks to agreed's dogma cash, good growth stocks, bad market crash coming, everything is gon na burn, but life Is much more complicated than that, so we're gon na have to wait and see. I hope you found this video useful. Thank you so much if you did find it useful. I'd really appreciate it.

If you could smash the like button for the tuba algorithm. Thank you. So much for watching and i'll see you guys later.