Investments in, for example, factories work that way, but as I understand it, investments in R&D and similar areas can also directly weaken the comparable operating profit for that year. It depends on accounting factors. A 2.5 billion R&D package was announced at the end of last year, and this should provide leeway for both the CEO and the share price. Just by spreading that amount over, say, 5 years, you can certainly play around with the comparable operating profit and us fellow investors.
Luckily, many insiders bought at the peak. It could be that things will quiet down for a while, after which the “bank will burst” (hit the jackpot) in a few years, or it could be that we are aiming for exponential growth and the bank will never burst before fizzling out, or it could be that there will be a profit warning in one direction or another. Just the everyday life of a basic investor.
The share is gasping for air due to the pressure on valuation multiples, and I will read the earnings report quite carefully, line by line, while considering further investments. I don’t want to buy at these prices with this weight, but maybe the earnings report will offer a chance to buy more, although I doubt it.
My current shares will stay in the portfolio at least until 2030. FOMO and all that. And besides, I have strong faith in the future, just like years ago when I made an investment decision that I felt was on solid ground.