ASML is too risky for value investing due to high valuation (P ratio in 50s); potential upside requires excessive market cap growth.

Next one, ASML. Much less risk there from a business perspective. However, risk from a price perspective because we discussed ISML a year and something ago. Good risk and reward here.

It was on this part of the quadrant where we'll discuss other buys. But then what happened? The stock price went from 560 to almost 1,500. The business is still the same. The P ratio was in the 30s 20s.

Now it is in the 50s. That changes the risk and reward for a long-term investor.

If I look a little bit at the earnings, okay, total net sales 43 to 45 billion. If we look at their investor day here, we are already at the lower end of sales. They project the higher end of sales will be reached by 2030.

And then if I look a little bit at net income as percentage of sales going up 30%, everything looks good. So let's say they reach 70 billion in revenues by 2030 times 30% that's 21 billion in profits. 21 billion in profits on a 600 billion market cap is still down the road a P ratio of what 30 a little bit less.

However, I'm investing to double my money let's say in a few years. So to double my money the market cap of ISML needs to go to 1.2 trillion still have a big P ratio like now five, six, seven years down the road.

Will it hold? It might but it is too risky and I have seen ISML risky go to less risky now it's risky again if the bubble pops and it goes down we will move it somewhere here again in the quadrant and then it will be a less risky buy because a P ratio 57 is not value investing

Uber looks like a great buy but on the quadrant goes on the bet sides which is a special video that will discuss all those bets some very interesting bets next week subscribe for that