Offshore
Photo
Q-Cap
$PTON congrats to Peloton shareholders for potentially being taken over for a -97% premium to 2020 prices https://t.co/goXh8I6wLa
tweet
$PTON congrats to Peloton shareholders for potentially being taken over for a -97% premium to 2020 prices https://t.co/goXh8I6wLa
tweet
Offshore
Photo
The Long Investor
RT @Investingcom: ⚠️ JUST IN:
*APPLE, RIVIAN REPORTEDLY IN TALKS FOR PARTNERSHIP
$AAPL $RIVN https://t.co/n6UqOuiwIU
tweet
RT @Investingcom: ⚠️ JUST IN:
*APPLE, RIVIAN REPORTEDLY IN TALKS FOR PARTNERSHIP
$AAPL $RIVN https://t.co/n6UqOuiwIU
tweet
Offshore
Photo
The Long Investor
$CELH added to our group on the 18th of April
We were prepared for the miss and decline.
200 Day MA does look attractive for a bounce https://t.co/YipcKE1j96
tweet
$CELH added to our group on the 18th of April
We were prepared for the miss and decline.
200 Day MA does look attractive for a bounce https://t.co/YipcKE1j96
tweet
Offshore
Photo
Daniel
Many strategies can outperform the market.
These 4 proved they can do it:
1. The Concentrated "High-Quality Business" Strategy
2. The "Special Situations" Strategy
3. The Diversified "GARP (Growth at a Reasonable Price)" Strategy
4. The Deep Value Strategy
Let me explain these Strategies👇
1. The Concentrated High-Quality Business Strategy is what most investors associate with Buffett.
It's probably the dominant strategy among value investors today. At least if we look at the big players.
You own a concentrated portfolio of 5 to 8 stocks consisting of high-quality businesses. High quality means stable and growing cash flows, competitive advantages, and a strong balance sheet.
2. The Special Situations Strategy was popularized by Joel Greenblatt's book "You can be a Stock Market Genius".
It's about finding situations where businesses are misprized due to different circumstances.
Those could be spin-offs, restructurings, mergers, or anything out of the ordinary.
Most successful investors started out in this field and also had their greatest returns during that time.
Even Buffett made his best returns with these investments. He used to call them "workouts".
3. The Diversified GARP Strategy is similar to the High-Quality approach and it doesn't have to be more diversified.
However, I made this assumption just to clarify that concentration is not the only way to outperform.
You can use this and the high-quality approach in both ways.
This approach is a little better suited for diversification because you look for businesses with higher growth expectations.
It's a trade-off between "value today and value tomorrow."
This approach tends to weigh "value tomorrow" a little higher than the high-quality approach.
4. The Deep Value Strategy was used by many of the investors seen in the graph above. Walter Schloss applied it for almost 50 years and it served him well.
It's about buying companies well below their actual worth. That worth is often measured by accounting for all current assets.
Companies valued like this are called "Net Nets." A typical deep-value investment is buying a company below book value.
Such opportunities have become much rarer in today's times, making this approach less common. However, I don't rule out that some investors still do this and perform well.
Let's talk Pros and Cons and what strategy one should use:
1. Individual Fit
Which one of these matches your personality and investment philosophy?
First of all, it's about your take on market efficiency.
If you believe that there are no inefficiencies in large-cap stocks, the high-quality business and GARP approach is already limited.
Yes, there are smaller companies that match the profile, but the number of opportunities is significantly lower. And the more limited your opportunities, the harder it gets.
On the other hand, once you find a great business at a great price, it's an investment for a long time.
You only need a handful of good investment opportunities. This is different with special situations, the turnover is higher.
You have the ability to compound faster and at higher rates, but you also need to find a lot more opportunities.
You need more time, a better understanding of the financial details, and look out for value traps and downside risks when a special situation doesn't turn out as planned.
Downside risks are often higher than with the other two approaches.
2. The Right Time
By owning just the largest US tech companies, you would've outperformed almost every fund and index over the past decade.
I know this info comes a little late... and there is no guarantee it will continue like that in the next decade.
However, businesses have changed dramatically over the last decades, and there's a reason these tech stocks grew like very few other businesses ever have.
Network Effects, winner-takes-all markets, and the inabilit[...]
Many strategies can outperform the market.
These 4 proved they can do it:
1. The Concentrated "High-Quality Business" Strategy
2. The "Special Situations" Strategy
3. The Diversified "GARP (Growth at a Reasonable Price)" Strategy
4. The Deep Value Strategy
Let me explain these Strategies👇
1. The Concentrated High-Quality Business Strategy is what most investors associate with Buffett.
It's probably the dominant strategy among value investors today. At least if we look at the big players.
You own a concentrated portfolio of 5 to 8 stocks consisting of high-quality businesses. High quality means stable and growing cash flows, competitive advantages, and a strong balance sheet.
2. The Special Situations Strategy was popularized by Joel Greenblatt's book "You can be a Stock Market Genius".
It's about finding situations where businesses are misprized due to different circumstances.
Those could be spin-offs, restructurings, mergers, or anything out of the ordinary.
Most successful investors started out in this field and also had their greatest returns during that time.
Even Buffett made his best returns with these investments. He used to call them "workouts".
3. The Diversified GARP Strategy is similar to the High-Quality approach and it doesn't have to be more diversified.
However, I made this assumption just to clarify that concentration is not the only way to outperform.
You can use this and the high-quality approach in both ways.
This approach is a little better suited for diversification because you look for businesses with higher growth expectations.
It's a trade-off between "value today and value tomorrow."
This approach tends to weigh "value tomorrow" a little higher than the high-quality approach.
4. The Deep Value Strategy was used by many of the investors seen in the graph above. Walter Schloss applied it for almost 50 years and it served him well.
It's about buying companies well below their actual worth. That worth is often measured by accounting for all current assets.
Companies valued like this are called "Net Nets." A typical deep-value investment is buying a company below book value.
Such opportunities have become much rarer in today's times, making this approach less common. However, I don't rule out that some investors still do this and perform well.
Let's talk Pros and Cons and what strategy one should use:
1. Individual Fit
Which one of these matches your personality and investment philosophy?
First of all, it's about your take on market efficiency.
If you believe that there are no inefficiencies in large-cap stocks, the high-quality business and GARP approach is already limited.
Yes, there are smaller companies that match the profile, but the number of opportunities is significantly lower. And the more limited your opportunities, the harder it gets.
On the other hand, once you find a great business at a great price, it's an investment for a long time.
You only need a handful of good investment opportunities. This is different with special situations, the turnover is higher.
You have the ability to compound faster and at higher rates, but you also need to find a lot more opportunities.
You need more time, a better understanding of the financial details, and look out for value traps and downside risks when a special situation doesn't turn out as planned.
Downside risks are often higher than with the other two approaches.
2. The Right Time
By owning just the largest US tech companies, you would've outperformed almost every fund and index over the past decade.
I know this info comes a little late... and there is no guarantee it will continue like that in the next decade.
However, businesses have changed dramatically over the last decades, and there's a reason these tech stocks grew like very few other businesses ever have.
Network Effects, winner-takes-all markets, and the inabilit[...]
Offshore
Daniel Many strategies can outperform the market. These 4 proved they can do it: 1. The Concentrated "High-Quality Business" Strategy 2. The "Special Situations" Strategy 3. The Diversified "GARP (Growth at a Reasonable Price)" Strategy 4. The Deep Value…
y to efficiently regulate highly innovative firms made these companies more successful than ever.
And this is a trend that is unlikely to stop and it benefits the high-quality and GARP approach investors.
Eventually, other companies will rise to the top, but the general trend of oligopolies and monopolies will probably remain.
These were some thoughts on the above-mentioned strategies.
When I have more to say, I might write a longer article on my Website.
What's your Investment Strategy and Opinion on this?
tweet
And this is a trend that is unlikely to stop and it benefits the high-quality and GARP approach investors.
Eventually, other companies will rise to the top, but the general trend of oligopolies and monopolies will probably remain.
These were some thoughts on the above-mentioned strategies.
When I have more to say, I might write a longer article on my Website.
What's your Investment Strategy and Opinion on this?
tweet
Offshore
Photo
Brandon Beylo
Here's one for all you uranium nerds.
Cameco $CCJ with a confirmed inverse H&S breakout today.
The pitch here is that if funds want uranium exposure, they really only have a few options: $U.UN, $YCA.L, and $CCJ.
Remember, it's all about fund flows.
#uranium https://t.co/DnQwszCPzH
tweet
Here's one for all you uranium nerds.
Cameco $CCJ with a confirmed inverse H&S breakout today.
The pitch here is that if funds want uranium exposure, they really only have a few options: $U.UN, $YCA.L, and $CCJ.
Remember, it's all about fund flows.
#uranium https://t.co/DnQwszCPzH
tweet
Dimitry Nakhla | Babylon Capital®
10 Quality Stocks Flying Under The Radar 💵
🖥️ CDW Corp $CDW
•5-Year EPS CAGR: 13.8%
•LTM ROIC: 20.5%
🗳️ Broadridge Financial $BR
•5-Year EPS CAGR: 10.8%
•LTM ROIC: 16.1%
🏦 Fair Isaac Corp $FICO
•5-Year EPS CAGR: 25.9%
•LTM ROIC: 51.3%
🚾 Agilent Technologies $A
•5-Year EPS CAGR: 14.2%
•LTM ROIC: 15.4%
🏢 NVR Inc $NVR
•5-Year EPS CAGR: 18.9%
•LTM ROIC: 37.2%
🚿 A O Smith $AOS
•5-Year EPS CAGR: 7.8%
•LTM ROIC: 36.8%
📈 FactSet Research $FDS
•5-Year EPS CAGR: 11.2%
•LTM ROIC: 19.5%
🪫 Amphenol $APH
•5-Year EPS CAGR: 9.7%
•LTM ROIC: 19.9%
🏥 Medpace $MEDP
•5-Year EPS CAGR: 25.9%
•LTM ROIC: 42.6%
🏊🏼♂️ Pool Corp $POOL
•5-Year EPS CAGR: 18.5%
•LTM ROIC: 26.2%
#stocks #investing
*5-Year EPS CAGR (Normalized EPS)
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 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.
tweet
10 Quality Stocks Flying Under The Radar 💵
🖥️ CDW Corp $CDW
•5-Year EPS CAGR: 13.8%
•LTM ROIC: 20.5%
🗳️ Broadridge Financial $BR
•5-Year EPS CAGR: 10.8%
•LTM ROIC: 16.1%
🏦 Fair Isaac Corp $FICO
•5-Year EPS CAGR: 25.9%
•LTM ROIC: 51.3%
🚾 Agilent Technologies $A
•5-Year EPS CAGR: 14.2%
•LTM ROIC: 15.4%
🏢 NVR Inc $NVR
•5-Year EPS CAGR: 18.9%
•LTM ROIC: 37.2%
🚿 A O Smith $AOS
•5-Year EPS CAGR: 7.8%
•LTM ROIC: 36.8%
📈 FactSet Research $FDS
•5-Year EPS CAGR: 11.2%
•LTM ROIC: 19.5%
🪫 Amphenol $APH
•5-Year EPS CAGR: 9.7%
•LTM ROIC: 19.9%
🏥 Medpace $MEDP
•5-Year EPS CAGR: 25.9%
•LTM ROIC: 42.6%
🏊🏼♂️ Pool Corp $POOL
•5-Year EPS CAGR: 18.5%
•LTM ROIC: 26.2%
#stocks #investing
*5-Year EPS CAGR (Normalized EPS)
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 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.
tweet
Antonio Linares
5 companies with multi-bagger potential on my watchlist:
1. $CRWD: cybersecurity is now about getting more and better data than the next guy and using it to train AI models that keep the bad guys away. $CRWD has good odds of turning into a winner-takes-all in this space, thanks to the architectural advantage it has over peers. It's effectively evolving into a platform, which competitors will likely be forced to plug into eventually.
2. $PATH: although initially just a harmless productivity app that automates clicks by watching what end users do on their screens, as $PATH develops a semantic understanding of the workflows it automates it can eventually automate work of very high value, closer to a company's core value creation mechanism (instead of just clicks). $PATH has had no problem competing with $MSFT to date, even though it basically lives in $MFST's back yard.
3. $RBLX: the more I study this company, the more I realize it is the social media platform of choice for Gen Alpha (those born between 2010 and 2024). $RBLX has demonstrated the ability to retain users as they grow up, which makes it more likely than not that the platform will be much more relevant in 10 years time.
4. $SMCI: the world is slowing realizing that not all data can/should be handed over to $AMZN, $GOOG and the other cloud hyper-scalers. The demand for personalized and proprietary data-centers is thus going through the roof and $SMCI has been obsessing about every painful detail involved in personalizing and deploying a datacenter, when nobody else really cared.
5. $ROKU: although largely disdained by the market at present, $ROKU has a privileged position in the smart TV OS space. Over the last few years, we saw a slowdown in the streaming space, which also affected $NFLX for example, and the market attributed $ROKU's weaker numbers to increased competition with $AMZN and $GOOG. My view is that $ROKU still dominates these two larger players and that, as the world continues to pivot towards smart TVs, $ROKU continues to compound an enormously valuable piece of digital real estate, which it may be able to capitalize on down the line via better unit economics.
tweet
5 companies with multi-bagger potential on my watchlist:
1. $CRWD: cybersecurity is now about getting more and better data than the next guy and using it to train AI models that keep the bad guys away. $CRWD has good odds of turning into a winner-takes-all in this space, thanks to the architectural advantage it has over peers. It's effectively evolving into a platform, which competitors will likely be forced to plug into eventually.
2. $PATH: although initially just a harmless productivity app that automates clicks by watching what end users do on their screens, as $PATH develops a semantic understanding of the workflows it automates it can eventually automate work of very high value, closer to a company's core value creation mechanism (instead of just clicks). $PATH has had no problem competing with $MSFT to date, even though it basically lives in $MFST's back yard.
3. $RBLX: the more I study this company, the more I realize it is the social media platform of choice for Gen Alpha (those born between 2010 and 2024). $RBLX has demonstrated the ability to retain users as they grow up, which makes it more likely than not that the platform will be much more relevant in 10 years time.
4. $SMCI: the world is slowing realizing that not all data can/should be handed over to $AMZN, $GOOG and the other cloud hyper-scalers. The demand for personalized and proprietary data-centers is thus going through the roof and $SMCI has been obsessing about every painful detail involved in personalizing and deploying a datacenter, when nobody else really cared.
5. $ROKU: although largely disdained by the market at present, $ROKU has a privileged position in the smart TV OS space. Over the last few years, we saw a slowdown in the streaming space, which also affected $NFLX for example, and the market attributed $ROKU's weaker numbers to increased competition with $AMZN and $GOOG. My view is that $ROKU still dominates these two larger players and that, as the world continues to pivot towards smart TVs, $ROKU continues to compound an enormously valuable piece of digital real estate, which it may be able to capitalize on down the line via better unit economics.
tweet
Offshore
Photo
Giuliano
This extract from The Wealth of Nations is fundamental for understanding currency depreciation.
It will be curious to observe what happens with Argentina's Peso. https://t.co/CfnDDiuc0h
tweet
This extract from The Wealth of Nations is fundamental for understanding currency depreciation.
It will be curious to observe what happens with Argentina's Peso. https://t.co/CfnDDiuc0h
tweet