⁠Hidden Value Gems
Stocks removed from the major US indices usually trade at a lower P/E (30% discount).

In the following 5 years, the average stock that was deleted from the index outperformed its benchmark by 28%.

Study by @RA_Insights
via @FT https://t.co/TcNgj6VD07

The universe of stocks continues to shrink which may explain why large caps continue to outperform. Doesn’t mean this is a good bet going forward.

1️⃣ There are now close to three times as many stock funds as listed American companies.

2️⃣ “The FT Wilshire 5000 Index had far more stocks to choose from than it could fit a quarter-century ago. Recently it was down to 3,381 members.”

3️⃣ Even though US companies account for an unprecedented 70% of the world’s stock-market value, the US companies represent fewer than 10% of all listed companies in the world - less than half the proportion of the late 1990s.

4️⃣ “S&P 500 beat the most popular small-company equivalent, the Russell 2000, by 93 percentage points during the 1994-99 tech boom. Like today, a handful of large companies made up a disconcerting share of those gains. Then through 2014 the small-cap index beat the S&P by 114 percentage points.”

5️⃣ “A popular index ETF tracking an S&P Dow Jones Indices small-cap index sounds similar to its FTSE Russell counterpart but has beaten it by 300 percentage points over the 24 years both have existed. The difference seems to be that the index provider screens for profitability before adding a stock, so it includes fewer of them.”

h/t @Spencerjakab - Hidden Value Gems
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⁠Lumida Wealth Management
Asana $ASAN Q2 2025 Results:

Earnings beat by 37.5%.
Revenue beat by 0.87%.
Total revenue increased by 10.3% year-over-year.

Read out full analysis-
https://t.co/xsHE3QAKUd
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⁠Lumida Wealth Management
Zscaler $ZS Q4 2024 Results:

Earnings beat by 27.5%.
Revenue beat by 4.45%.
Total revenue increased by 30.3% year-over-year.

Read full analysis - https://t.co/cIKLbEEqlb
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⁠Librarian Capital
Direct Line $DLG 24H1

Net Insurance Margin (NIM) 1.8% (PY -8.8%)
Op. ROTE 5.8%
Op. EPS 2.7p
Solvency 198%

UK Motor
Own brand policies -13.5% y/y, -7.5% (254k) vs. Dec
Own brand GWP +9.5% y/y
Total policies +8.3% y/y (Motability)
NIM -3.0% (PY -25.6%)

Targets 13% NIM in 2026 https://t.co/HpVIBF2isE
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⁠Librarian Capital
Direct Line $DLG 2nd offer from Ageas $AGS was 239p
This was disclosed 13-Mar; DLG shares down 15% since

Some UK fund managers went around giving interviews attacking the offer, not realizing that gain for clients

I hope it was worth it https://t.co/7bVUbbrVIz
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⁠Stock Analysis Compilation
Baron Capital on Indus Towers $INDUSTOWER IN

Thesis: Indus is poised for re-rating and growth as 5G expansion and improving customer viability drive enhanced cash flow and operating leverage

(Extract from their Q2 letter) https://t.co/2HruDIQPdH
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⁠Invest In Assets 📈
RT @InvestInAssets: Warren Buffett once said:

"It is far better to buy a wonderful company at a fair price than a fair business at a wonderful price."

But how does Buffett identify a wonderful company?

Here are 8 metrics Buffett use to identify wonderful companies: https://t.co/mm2SmMul4V
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⁠Hidden Value Gems
Interesting facts:

✅ “Since 1926, just 72 companies have provided half the returns over bonds of companies.”

✅ “The figure in New York is that 60 percent of people are paid on the basis of their daily P&L.”

✅ “Out of one million companies, only 45 get to 100 year old.”

Great episode by @NicolaiTang1
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