David Meier

I think that is completely underappreciated by the market right now.

If you look, it is trading at valuations that it's never seen before in its lifespan.

Here you are getting a very high-quality company, and even though it's growing a little bit slower than maybe people would like, it is very well-run, has an amazing balance sheet, amazing cash flow generation.

I think Workday outperforms.

You can probably get somewhere between 10% and 12% annual returns from here with a lot less volatility.

Zscaler, while it is absolutely an essential piece of cybersecurity,

It trades much higher valuations, and it has some growing to do in terms of the overall profitability of the business.

Plus, it's going to have to reinvest a lot to make sure that its technology stays current with what's happening.

I give the nod to Workday just because it might be a little tougher for Zscaler to do all the things it needs to do to get up into the 10% to 12% annual return range for the next decade.

First of all, I just want to reconfirm that it is extremely important for every investor to understand all of these biases, because they are real and they impact the decisions that we make.

But I will say this, the one that has stuck with me the most, and I personally think is the most important one, is the disposition effect.

As soon as I learned about it, I was blown away.

But basically, what it says is, when prices go up, we become risk-averse because we don't like the pain of loss.

We don't want to lose something we have.

And when prices go down, we actually become risk-seekers.

Let me double down.

Let me hold on, because I don't want to confirm that actually this loss is happening.

I actually want it to go away.

Right?

If we talk about anything at The Motley Fool, we talk about using time as your greatest ally with great companies and compounding.