x P/E: $217.50💵 … ~10.7% CAGR

23x P/E: $200.10💵 … ~7.0% CAGR

As you can see, we’d have to assume at least 25x earnings for $RMD to have attractive CAGR potential

This is well below $RMD 10-Year average multiple of 28.96x

Yet, I believe the 10-Year multiple is elevated and we shouldn’t rely on it

Given its quality & historical growth rates, I believe it’s reasonable for $RMD to trade somewhere in between 25x - 27x, making it a fair purchase today at $174💵

However, if you want a greater margin of safety, $RMD is an even better consideration at $148💵 or for 20x NTM earnings

#stocks #investing
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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. "- Dimitry Nakhla | Babylon Capital®
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iinvested
1Q'24 SouternSun Small Cap on $DY, $BOOT, $MBUU, $MGPI

https://t.co/1EagqE8koj

More fund letters here:
https://t.co/HhAAZQRRKy https://t.co/r9xKKxzwOf
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 Q-Cap 
So my son is going to be 8 feet 6 inches tall.

Very proud!

Thank you @ChatGPTapp https://t.co/F27uACTG2T
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Brandon Beylo
RT @wolfejosh: Very good;)

Value investors passing on every great business so they can buy a dilapidated steel mill at 2x earnings and 1/2 replacement cost. https://t.co/KjmMDLs6lZ - Brandon Beylo
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The Long Investor
Buffett over the last 12 months has been a net seller.

Buffett is not a technical guy, he focuses solely on fundamentals

When the market is overvalued, he net sells and builds cash, at $168 Billion now https://t.co/KSTsmvHltL
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The Long Investor
Why did Bill Gates completely flip from aggressive net buying to aggressive net selling between Q3 and Q4 2023? https://t.co/YTEELCvlCf
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Antonio Linares
RT @FedexSTi: Música para mis oídos. Male es espectacular. Además de súper buena onda hace buenas preguntas y me gusta mucho su voz.

Tesla es una compañía de tecnología, manufactura y energía. The abundance triangle cortesía de @alc2022

Si me dan la chance mañana puedo explicar un poco. Es mas o menos así.

No miento cuando lo arrobo a Elon Musk que estudio la compañía multiples horas por semana.
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Antonio Linares
$CRWD is emerging as a dominant force in the XDR cybersecurity arena, potentially leading to a winner-takes-all scenario.

The company's competitive advantage is robust and continues to strengthen due to the following factors:

1. The market's most efficient software agent: Their system is designed for easy installation and operation, attracting more users and thus, more data for analysis.

2. Integrated data framework: By consolidating all data into a single model, $CRWD simplifies obtaining a unified view of security threats and enhances the training of AI algorithms.

3. Low incremental cost for new modules: The streamlined data architecture of $CRWD facilitates the training and rollout of new AI-driven modules, allowing them to expand their offerings at minimal additional cost.

4. Positive feedback loop: The introduction of new modules brings in additional customers, who provide more data, which in turn improves the AI capabilities and leads to the development of even more advanced modules. This cycle fuels increasing cash generation over time.

5. Scalable profitability: As usage of their modules grows, $CRWD experiences significant leaps in cash generation with little additional expenditure. Each new module not only enhances their service offering but also reinforces their financial inflow.

Observe the progression of $CRWD's cash from operations over time below: 👇
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Daniel
Joel Greenblatt compounded at 49% (!) from 1985 to 2005.

And the best thing, he taught a Columbia Class on how to do it.

Here are 6 Investing Gems from his Columbia Classnotes (+Free PDF)👇🏼 https://t.co/k5BmAU5mUL
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Antonio Linares
I bought a truckload of $PLTR at $7 and $SPOT at $97.50, after they fell slowly for 2 years.

When I bought $AMD at $4.2, it spent the next two years slowly declining 70%+.

You can’t fake conviction.
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