Shyam Sekhar on X: “Overvaluing engineering technology is the latest fad. Picking a good business, run by a pedigreed entrepreneur, with a fancy tech story, a reasonably sound product idea and a difficult to estimate market opportunity

Overvaluing engineering technology is the latest fad. Picking a good business, run by a pedigreed entrepreneur, with a fancy tech story, a reasonably sound product idea and a difficult to estimate market opportunity – that’s the playbook.

It has worked brilliantly. But, after it plays out to its full potential, then it is a phase of slow decline. Institutional Investors hold the most in such companies, public hold very little and stock price management is all that meaningfully happens.

The problem is everything gets priced to perfection. Often, those who know too much get out faster when things start to get tougher.

The worry is for the money that moves very slowly. If you move too slowly, you can be stuck for years.

This market is truly a cracker. But, when it finishes burning, the silence can be eerie.