Palantir

Palantir is a company I'm more than happy to sit on the sidelines for. Valuations are in bubble-like situation in which if the company does not perform absolutely perfect, we will likely see a big drawdown in price.

I've seen this story time and time again with equities that go parabolic and the situation is almost never good at the end.

I predict Palantir will need a 40%+ compound annual growth rate over the next half decade in order to justify its current valuations. Not many companies can do this.

If it does, congratulations to the company and shareholders. But it is one that is just too much risk for too little reward for me.