Offshore
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Antonio Linares
$HIMS P/S ratio remains at 2.8, which is very cheap for a company with this level of execution. https://t.co/tatYBvcWwf
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$HIMS P/S ratio remains at 2.8, which is very cheap for a company with this level of execution. https://t.co/tatYBvcWwf
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The Long Investor
$PLTR we don't always agree but on $PLTR we are close.
TLI PT is $41 for Wave 3, which is also the 1.618 Fib.
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$PLTR we don't always agree but on $PLTR we are close.
TLI PT is $41 for Wave 3, which is also the 1.618 Fib.
Palantir delivered another robust performance led by US commercial growth of 40%. Boot camps are exploding; deal conversion is accelerating on the AIP vision. The key to the stock is AIP/US commercial and the Messi of AI is executing on the golden AI vision. $35 PT ๐ฅ๐๐๐ฟ tweet
X (formerly Twitter)
Dan Ives (@DivesTech) on X
Palantir delivered another robust performance led by US commercial growth of 40%. Boot camps are exploding; deal conversion is accelerating on the AIP vision. The key to the stock is AIP/US commercial and the Messi of AI is executing on the golden AI vision.โฆ
The Long Investor
$PTON shocking ๐ฎ
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$PTON shocking ๐ฎ
PELOTON $PTON is being "circled" by private equity firms for a buyout - CNBC tweet
X (formerly Twitter)
Stock Talk (@stocktalkweekly) on X
PELOTON $PTON is being "circled" by private equity firms for a buyout - CNBC
Offshore
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The Long Investor
RT @TheLongInvest: $PTON was once worth $171 a share, now at $3.39.
From $63 Billion to $1.25 Billion.
Would $NKE, $LULU, $SKX consider buying this and adding value to their ecosystem?....seems like a steal at this level. https://t.co/saGwqgLgrm
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RT @TheLongInvest: $PTON was once worth $171 a share, now at $3.39.
From $63 Billion to $1.25 Billion.
Would $NKE, $LULU, $SKX consider buying this and adding value to their ecosystem?....seems like a steal at this level. https://t.co/saGwqgLgrm
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Offshore
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๎จ Q-Cap ๎จ
$PTON congrats to Peloton shareholders for potentially being taken over for a -97% premium to 2020 prices https://t.co/goXh8I6wLa
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$PTON congrats to Peloton shareholders for potentially being taken over for a -97% premium to 2020 prices https://t.co/goXh8I6wLa
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Offshore
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The Long Investor
RT @Investingcom: โ ๏ธ JUST IN:
*APPLE, RIVIAN REPORTEDLY IN TALKS FOR PARTNERSHIP
$AAPL $RIVN https://t.co/n6UqOuiwIU
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RT @Investingcom: โ ๏ธ JUST IN:
*APPLE, RIVIAN REPORTEDLY IN TALKS FOR PARTNERSHIP
$AAPL $RIVN https://t.co/n6UqOuiwIU
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Offshore
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The Long Investor
$CELH added to our group on the 18th of April
We were prepared for the miss and decline.
200 Day MA does look attractive for a bounce https://t.co/YipcKE1j96
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$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
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Offshore
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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 Strategies๐
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 Strategies๐
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 Valueโฆ
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?
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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
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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
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