𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.

𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.

𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲. "- Dimitry Nakhla | Babylon Capital®
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⁠Dimitry Nakhla | Babylon Capital®
6 High-Quality Stocks Where Earnings Growth Outpaced Share Price YTD 💸 — The Last Stock Got Cheaper Despite Being +21% YTD 👀

🤖 Nvidia $NVDA
•YTD: +176%
•Jan NTM P/E: 24.78x
•NTM P/E: 34.72x
•Multiple Change: +40%

📸 Meta Platforms $META
•YTD: +62%
•Jan NTM P/E: 20.32x
•NTM P/E: 23.48x
•Multiple Change: +15%

💵 Mastercard $MA
•YTD: +24%
•Jan NTM P/E: 30.86x
•NTM P/E: 33.66x
•Multiple Change: +9%

📦 Amazon $AMZN
•YTD: +37%
•Jan NTM P/OCF: 13.08x
•NTM P/OCF: 14.03x
•Multiple Change: +7%

💳 Visa $V
•YTD: +20%
•Jan NTM P/E: 26.20x
•NTM P/E: 27.80x
•Multiple Change: +5%

🖱️ Alphabet $GOOG
•YTD: +21%
•Jan NTM P/E: 21.45x
•NTM P/E: 19.79x
•Multiple Change: -7%
____

#stocks #investing
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⁠Value Spotlight (Andrew Sather)
How to Spot a Value Trap in Plain Sight - Using ROIC (Tutorial)

Love how the New Constructs Model Portfolios display companies like this instantly, saves me time and saves me from losing money on bad high growth stocks @NewConstructs https://t.co/DzlcCyDBLS
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⁠Stock Analysis Compilation
Hedge funds' best ideas #20 is in your inbox 🔥
(link below)

Includes links to the Q3 letters from TCW / Alger / Aristotle / BIT Capital / Blue Tower AM / Brandes / Clearbridge / Cooper Investors / Epoch IP / Focus Capital / Ganes / Greenhaven Road Capital / Harding Loevner / LVS Advisory / Miller Value / Oakmark / TAMIM Fund / Wasatch GI
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⁠Startup Archive
RT @MattPRD: This is a key skill when starting a company.

Y Combinator Partners on DoorDash, Instacart, and doing things that don’t scale

Apoorva Mehta’s idea for Instacart was to let users order their groceries with the tap of a button.

Some founders might’ve spent months trying to negotiate corporate partnerships with grocery stores like Trade Joe’s or Whole Foods before starting this business. But the first thing Apoorva did was test whether this was something people even wanted.

His team took their YC money, went to Trader Joe’s and bought one of every item. They then rented a photography studio, took pictures of every item, wrote down the prices, and posted it all to their website. When an order came in, they bought the item from Trader Joe’s and delivered it.

This allowed them to prove that Instacart was something customers wanted, and only once they hit scale did they negotiate partnerships with large grocery chains.

YC Partner Tom Blomfield sums up the core advantage this approach that Paul Graham advocates for in his essay Do Things That Don’t Scale:

“In the cases where you do things that don’t scale and it turns out no one wants it, that’s actually a good thing because you’ve saved yourself months or years of building something no one wants… And by doing this stuff that doesn’t scale, you can give the appearance of that service or product already existing by basically faking it manually, pulling the strings in the background, and doing tons of hard work yourself to deliver that incredible white glove experience to customers.”

YC CEO Garry Tan adds:

“Doing things that don’t scale lets you experiment, fail fast, and try new things. It lets you test your assumptions before you spend months building a product.”

YC Partners Diana Hu and Michael Seibel discuss another great example of this: DoorDash.

Even though the team was a technical group of Stanford engineering students and MBAs, they built the MVP with a tech stack of Google Drive to upload menus, a simple HTML/CSS website, a Google Form to take orders, and Find My Friends as their dispatch system to track drivers.

Diana comments:

“They could have done the fancy thing and build out a dynamic site with real-time tracking, but the founders were very pragmatic. That was not the hardest thing to prove.”

Usually the hardest thing to prove is that your product is something people want.

Video source: @ycombinator (2024) - Startup Archive
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⁠Stock Analysis Compilation
Saltlight Capital on Roblox $RBLX US

Thesis: Roblox redefines gaming by empowering developers and creators with a vast audience and cross-platform accessibility, poised to unlock new revenue streams through advertising while reshaping the industry

(Extract from their Q3 letter) https://t.co/OkSRa5JDXH
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⁠Startup Archive
Naval Ravikant on the most valuable advice he’s received

When asked about the best advice he’s ever received, Naval says he first ignored it.

“It's the same one that everyone who's been in the business for a long time and has a lot of gray hairs tells you… whether it's Warren Buffett telling you about public investing or whether it's an experienced venture capitalist telling you about private investing… They'll all tell you, ‘It’s the people, stupid.’”

Naval urges startup founders to look for three qualities in a partner: intelligence, energy and integrity.

“You need all three. You can't compromise on any one of them. Otherwise you'll end up with either someone who's not smart (which does you no good) or someone who's not hardworking (which also does you no good) or the worst case is you end up with a smart, hardworking crook who ends up working against your interests.”

Video source: @gigaom (2010)
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⁠Investing visuals
Crowdstrike $CRWD after earnings summary: solid quarter, managed the outage very well and continues to perform at an exceptional level👌👇 https://t.co/Yc6V65Utm6
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⁠Quiver Quantitative
Representative Dan Crenshaw has said that there aren’t many examples of politicians making suspicious trades.

He must not follow our account.

https://t.co/md6IWk8jpO
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⁠Stock Analysis Compilation
Atai Capital Management on Haivision Systems $HAI CN

Thesis: Haivision’s pivot to high-growth industries and undervalued multiples set it up for scalable profitability and robust returns

(Extract from their Q3 letter) https://t.co/P6bRLO3S4U
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⁠Stock Analysis Compilation
Sound Shore Fund on Public Service Enterprise Group $PEG US

Thesis: PSE&G delivers steady utility returns while unlocking unappreciated value from its nuclear assets, driving substantial upside potential.

(Extract from their Q3 letter) https://t.co/Zo18DaAHCA
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