Offshore
Photo
Dimitry Nakhla | Babylon Capital®
RT @HangmanTrades: I don’t respect many traders on X 90% are fake screenshots, discord pumpers, delete tweets. This guy is one of the 3 or 4 I’ve found who are legit
tweet
RT @HangmanTrades: I don’t respect many traders on X 90% are fake screenshots, discord pumpers, delete tweets. This guy is one of the 3 or 4 I’ve found who are legit
2 weeks ago I shared my “sober valuation analysis 🧘🏽♂️” on $LULU
Since then, $LULU popped +16% after reporting better than expected quarterly result
As I stated in my analysis:
“$LULU can demand a >20x multiple IF it beats growth estimates over the next few years, signaling that the sell-off due to competitive pressures may be overdone
I don’t believe it’s unreasonable to rely on ~22x (especially given $LULU return metrics, balance sheet, & strong history of growth — $LULU has grown its revenues ANNUALLY since 2007 🤯)
Today at $300💵 $LULU appears to be a worthwhile consideration for investment — albeit with several competitive risks (and how $LULU responds) that should be monitored closely”
#stocks #investing
_______
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
Offshore
Photo
Dimitry Nakhla | Babylon Capital®
A sober valuation analysis on $PYPL 🧘🏽♂️
•NTM P/E Ratio: 15.37x
•5-Year Mean: 31.06x
•NTM FCF Yield: 10.09%
•5-Year Mean: 5.08%
As you can see, $PYPL appears to be trading below fair value
Going forward, investors can receive ~102% MORE in earnings per share & ~98% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $PYPL is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $14.06B
•Long-Term Debt: $9.68B
$PYPL has an excellent balance sheet, an A- S&P Credit Rating, & 16.16x FFO Interest Coverage
RETURN ON CAPITAL✅
•2019: 12.4%
•2020: 11.5%
•2021: 13.6%
•2022: 12.7%
•2023: 14.8%
•LTM: 15.7%
RETURN ON EQUITY✅
•2019: 15.2%
•2020: 22.7%
•2021: 20.0%
•2022: 11.5%
•2023: 20.5%
•LTM: 21.4%
$PYPL has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2018: $15.45B
•2023: $29.77B
•CAGR: 14.01%
FREE CASH FLOW❌*
•2018: $4.66B
•2023: $4.22B
•Decrease: (9.44%)
*FCF in 2017 was $1.86B, so FCF rose ~150% in 2018 start date (“normalizing” the decline above)
NORMALIZED EPS✅
•2018: $2.42
•2023: $5.10
•CAGR: 16.07%
SHARE BUYBACKS✅
•2015 Shares Outstanding: 1.23B
•LTM Shares Outstanding: 1.09B
By reducing its shares outstanding by 11.3%, $PYPL increased its EPS by 12.7% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 39.6%
•LTM Operating Margins: 16.7%
•LTM Net Income Margins: 14.3%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~102% MORE in EPS & ~98% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $PYPL has to grow earnings at a 7.69% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be slightly below the (7.69%) required growth rate:
2024E: $4.12 (-19.1% YoY) *FY Dec
2025E: $4.56 (10.6% YoY)
2026E: $5.00 (9.7% YoY)
$PYPL has an ok track record of meeting analyst estimates ~2 years out, but let’s assume $PYPL ends 2026 with $5.00 in EPS & see its CAGR potential assuming different multiples
18x P/E: $90.00💵 … ~17.00% CAGR
17x P/E: $85.00💵 … ~14.4% CAGR
16x P/E: $80.00💵 … ~11.7% CAGR
As you can see, $PYPL appears to have attractive return potential if we assume >16 earnings & aggressive return potential if we assume >18x earnings
The 🔑 isn't a mean reversion in $PYPL's multiple, but a modest increase (still below its historical average) - a reasonable and safe assumption
There’s still a ton of negative sentiment around $PYPL and this sentiment can be flipped in just a few quarters if management continues to make progress towards its goals
I believe they will — however, investors concerned with the “turnaround risks” associated with $PYPL can still benefit by allocating a smaller % to $PYPL
Today at $66💵 $PYPL appears to be a strong consideration for investment (albeit, with some turnaround risks & competitive risks)
#stocks #investing
___
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.
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A sober valuation analysis on $PYPL 🧘🏽♂️
•NTM P/E Ratio: 15.37x
•5-Year Mean: 31.06x
•NTM FCF Yield: 10.09%
•5-Year Mean: 5.08%
As you can see, $PYPL appears to be trading below fair value
Going forward, investors can receive ~102% MORE in earnings per share & ~98% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $PYPL is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $14.06B
•Long-Term Debt: $9.68B
$PYPL has an excellent balance sheet, an A- S&P Credit Rating, & 16.16x FFO Interest Coverage
RETURN ON CAPITAL✅
•2019: 12.4%
•2020: 11.5%
•2021: 13.6%
•2022: 12.7%
•2023: 14.8%
•LTM: 15.7%
RETURN ON EQUITY✅
•2019: 15.2%
•2020: 22.7%
•2021: 20.0%
•2022: 11.5%
•2023: 20.5%
•LTM: 21.4%
$PYPL has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2018: $15.45B
•2023: $29.77B
•CAGR: 14.01%
FREE CASH FLOW❌*
•2018: $4.66B
•2023: $4.22B
•Decrease: (9.44%)
*FCF in 2017 was $1.86B, so FCF rose ~150% in 2018 start date (“normalizing” the decline above)
NORMALIZED EPS✅
•2018: $2.42
•2023: $5.10
•CAGR: 16.07%
SHARE BUYBACKS✅
•2015 Shares Outstanding: 1.23B
•LTM Shares Outstanding: 1.09B
By reducing its shares outstanding by 11.3%, $PYPL increased its EPS by 12.7% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 39.6%
•LTM Operating Margins: 16.7%
•LTM Net Income Margins: 14.3%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~102% MORE in EPS & ~98% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $PYPL has to grow earnings at a 7.69% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be slightly below the (7.69%) required growth rate:
2024E: $4.12 (-19.1% YoY) *FY Dec
2025E: $4.56 (10.6% YoY)
2026E: $5.00 (9.7% YoY)
$PYPL has an ok track record of meeting analyst estimates ~2 years out, but let’s assume $PYPL ends 2026 with $5.00 in EPS & see its CAGR potential assuming different multiples
18x P/E: $90.00💵 … ~17.00% CAGR
17x P/E: $85.00💵 … ~14.4% CAGR
16x P/E: $80.00💵 … ~11.7% CAGR
As you can see, $PYPL appears to have attractive return potential if we assume >16 earnings & aggressive return potential if we assume >18x earnings
The 🔑 isn't a mean reversion in $PYPL's multiple, but a modest increase (still below its historical average) - a reasonable and safe assumption
There’s still a ton of negative sentiment around $PYPL and this sentiment can be flipped in just a few quarters if management continues to make progress towards its goals
I believe they will — however, investors concerned with the “turnaround risks” associated with $PYPL can still benefit by allocating a smaller % to $PYPL
Today at $66💵 $PYPL appears to be a strong consideration for investment (albeit, with some turnaround risks & competitive risks)
#stocks #investing
___
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.
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AkhenOsiris
Bank of America analysts predict a multi-year boom for the semiconductor industry, fueled by the surging demand for artificial intelligence.
The bank said in a note that observations from Computex, a tech trade show, highlight a global push towards AI across various sectors.
"We see the semiconductor industry is set for multi-year growth, with the tech titans being all in for AI at Computex," states BofA.
They highlight the increasing presence of AI in everything from data centers to edge computing, PCs, and smartphones. BofA believes this will necessitate larger semiconductor dies to handle the growing volume of data and processing power required for AI applications.
The rapid pace of innovation underscores this demand. "The relentless compute demand rise can be reflected in AMD's and NVIDIA's fast product development cadence of one year," adds BofA.
tweet
Bank of America analysts predict a multi-year boom for the semiconductor industry, fueled by the surging demand for artificial intelligence.
The bank said in a note that observations from Computex, a tech trade show, highlight a global push towards AI across various sectors.
"We see the semiconductor industry is set for multi-year growth, with the tech titans being all in for AI at Computex," states BofA.
They highlight the increasing presence of AI in everything from data centers to edge computing, PCs, and smartphones. BofA believes this will necessitate larger semiconductor dies to handle the growing volume of data and processing power required for AI applications.
The rapid pace of innovation underscores this demand. "The relentless compute demand rise can be reflected in AMD's and NVIDIA's fast product development cadence of one year," adds BofA.
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AkhenOsiris
Copy/pasta from 300, 400, 500, 600, 700, 800, 900, 1000, 1100
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Copy/pasta from 300, 400, 500, 600, 700, 800, 900, 1000, 1100
Make sure to buy todays 1% dip in nvda, it’s the gift of a lifetime - HeadofMicroCapitaltweet
AkhenOsiris
RT @trader_53: *ALPHABET APPOINTMENT OF ANAT ASHKENAZI AS NEW CFO
Ah, so Lilly loses the CFO to Alphabet $GOOG
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RT @trader_53: *ALPHABET APPOINTMENT OF ANAT ASHKENAZI AS NEW CFO
Ah, so Lilly loses the CFO to Alphabet $GOOG
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Dimitry Nakhla | Babylon Capital®
10 Quality Stocks That Consistently Achieved ROIC >20% ANNUALLY For The Last 10 Years 💸
🚘 Copart $CPRT
•NTM P/E: 34.23x
•5-Year Mean: 32.22x
💽 Taiwan Semiconductor $TSM
•NTM P/E: 24.58x
•5-Year Mean: 21.25x
🏊🏼♂️ Pool Corp $POOL
•NTM P/E: 26.42x
•5-Year Mean: 29.54x
💳 Mastercard $MA
•NTM P/E: 30.45x
•5-Year Mean: 35.36x
🏢 NVR Inc $NVR
•NTM P/E: 15.46x
•5-Year Mean: 14.50x
🚛 Old Dominion Freight Line $ODFL
•NTM P/E: 27.34x
•5-Year Mean: 28.82x
💰 Automatic Data Processing $ADP
•NTM P/E: 25.53x
•5-Year Mean: 28.11x
🍎 Apple $AAPL
•NTM P/E: 28.51x
•5-Year Mean: 25.80x
🔩 Fastenal $FAST
•NTM P/E: 30.63x
•5-Year Mean: 29.05x
🩳 Lululemon $LULU
•NTM P/E: 22.08x
•5-Year Mean: 42.17x
#stocks #investing
___
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.
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10 Quality Stocks That Consistently Achieved ROIC >20% ANNUALLY For The Last 10 Years 💸
🚘 Copart $CPRT
•NTM P/E: 34.23x
•5-Year Mean: 32.22x
💽 Taiwan Semiconductor $TSM
•NTM P/E: 24.58x
•5-Year Mean: 21.25x
🏊🏼♂️ Pool Corp $POOL
•NTM P/E: 26.42x
•5-Year Mean: 29.54x
💳 Mastercard $MA
•NTM P/E: 30.45x
•5-Year Mean: 35.36x
🏢 NVR Inc $NVR
•NTM P/E: 15.46x
•5-Year Mean: 14.50x
🚛 Old Dominion Freight Line $ODFL
•NTM P/E: 27.34x
•5-Year Mean: 28.82x
💰 Automatic Data Processing $ADP
•NTM P/E: 25.53x
•5-Year Mean: 28.11x
🍎 Apple $AAPL
•NTM P/E: 28.51x
•5-Year Mean: 25.80x
🔩 Fastenal $FAST
•NTM P/E: 30.63x
•5-Year Mean: 29.05x
🩳 Lululemon $LULU
•NTM P/E: 22.08x
•5-Year Mean: 42.17x
#stocks #investing
___
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.
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Offshore
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Dimitry Nakhla | Babylon Capital®
~2 & 1/2 months ago I shared my “sober valuation analysis 🧘🏽♂️” on $QLYS stating:
“Albeit, for investors that prefer to consider the downside first (as myself) the current assumptions don’t leave us with a margin of safety
I’d become interested in $QLYS closer to 28x earnings or at $145💵 (~12.5% below todays price)
I understand I may be asking for too much on the valuation — however I don’t view it that way considering competition in the sector & $QLYS slowdown in growth which could lead to a re-rating in its multiple”
Since then, $QLYS dropped ~18% & is currently trading at $134.73💵, slightly below my $145💵 target
While I remain interested in $QLYS, I'm hesitant to add shares at present due to the competitive landscape, sector slowdown, preference to own $FTNT & $PANW over $QLYS, and the availability of other attractive opportunities in the market that have a wider moat
#stocks #investing"
A sober valuation analysis on $QLYS 🧘🏽♂️
•NTM P/E Ratio: 32.03x
•5-Year Mean: 37.39x
•NTM FCF Yield: 3.58%
•5-Year Mean: 3.63%
As you can see, $QLYS appears to be trading slightly below fair value
Going forward, investors can receive ~17% MORE in earnings per share & about the same in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $QLYS is a quality business
BALANCE SHEET✅
•Cash & Short-Term Inv: $425.56M
•Long-Term Debt: $0
$QLYS has an excellent balance sheet
RETURN ON CAPITAL✅
•2019: 16.5%
•2020: 20.9%
•2021: 23.7%
•2022: 39.4%
•2023: 41.1%
RETURN ON EQUITY✅
•2019: 18.6%
•2020: 23.1%
•2021: 16.9%
•2022: 29.8%
•2023: 46.1%
$QLYS has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $107.96M
•2023: $554.46M
•CAGR: 17.77%
FREE CASH FLOW✅
•2013: $11.43M
•2023: $235.82M
•CAGR: 35.34%
NORMALIZED EPS✅
•2013: $0.20
•2023: $5.27
•CAGR: 38.70%
SHARE BUYBACKS❌ / ✅
•2013 Shares Outstanding: 35.97M
•LTM Shares Outstanding: 37.60M
However, from 2018 - 2023, $QLYS reduced its shares outstanding ~10.2%, increasing its EPS by ~11.3% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 80.6%
•LTM Operating Margins: 29.4%
•LTM Net Income Margins: 27.3%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~17% MORE in EPS & about the same in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $QLYS has to grow earnings at a 16.02% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be less than the (16.02%) required growth rate:
2024E: $5.19 (-1.5% YoY) *FY Dec
2025E: $5.71 (10.1% YoY)
2026E: $6.67 (16.8% YoY)
$QLYS has an excellent track record of meeting analyst estimates ~2 years out, so let’s assume $QLYS ends 2026 with $6.67 in EPS & see its CAGR potential assuming different multiples
35x P/E: $233.45💵 … ~13.5% CAGR
32.5x P/E: $216.77💵 … ~10.4% CAGR
30x P/E: $200.10💵 … ~7.3% CAGR
As you can see, $QLYS needs to trade closer to >32.5x earnings for it to have double-digit return potential
This isn’t unreasonable given $QLYS historical valuation & financial efficiency — moreover, $QLYS has maintained fairly strong support near that 32.5x level
$QLYS appears to be a great business treading for a fair price
Albeit, for investors that prefer to consider the downside first (as myself) the current assumptions don’t leave us with a margin of safety
I’d become interested in $QLYS closer to 28x earnings or at $145💵 (~12.5% below todays price)
I understand I may be asking for too much on the valuation — however I don’t view it that way considering competition in the sector & $QLYS slowdown in growth which could lead to a re-rating in its multiple
[...]
~2 & 1/2 months ago I shared my “sober valuation analysis 🧘🏽♂️” on $QLYS stating:
“Albeit, for investors that prefer to consider the downside first (as myself) the current assumptions don’t leave us with a margin of safety
I’d become interested in $QLYS closer to 28x earnings or at $145💵 (~12.5% below todays price)
I understand I may be asking for too much on the valuation — however I don’t view it that way considering competition in the sector & $QLYS slowdown in growth which could lead to a re-rating in its multiple”
Since then, $QLYS dropped ~18% & is currently trading at $134.73💵, slightly below my $145💵 target
While I remain interested in $QLYS, I'm hesitant to add shares at present due to the competitive landscape, sector slowdown, preference to own $FTNT & $PANW over $QLYS, and the availability of other attractive opportunities in the market that have a wider moat
#stocks #investing"
A sober valuation analysis on $QLYS 🧘🏽♂️
•NTM P/E Ratio: 32.03x
•5-Year Mean: 37.39x
•NTM FCF Yield: 3.58%
•5-Year Mean: 3.63%
As you can see, $QLYS appears to be trading slightly below fair value
Going forward, investors can receive ~17% MORE in earnings per share & about the same in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $QLYS is a quality business
BALANCE SHEET✅
•Cash & Short-Term Inv: $425.56M
•Long-Term Debt: $0
$QLYS has an excellent balance sheet
RETURN ON CAPITAL✅
•2019: 16.5%
•2020: 20.9%
•2021: 23.7%
•2022: 39.4%
•2023: 41.1%
RETURN ON EQUITY✅
•2019: 18.6%
•2020: 23.1%
•2021: 16.9%
•2022: 29.8%
•2023: 46.1%
$QLYS has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $107.96M
•2023: $554.46M
•CAGR: 17.77%
FREE CASH FLOW✅
•2013: $11.43M
•2023: $235.82M
•CAGR: 35.34%
NORMALIZED EPS✅
•2013: $0.20
•2023: $5.27
•CAGR: 38.70%
SHARE BUYBACKS❌ / ✅
•2013 Shares Outstanding: 35.97M
•LTM Shares Outstanding: 37.60M
However, from 2018 - 2023, $QLYS reduced its shares outstanding ~10.2%, increasing its EPS by ~11.3% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 80.6%
•LTM Operating Margins: 29.4%
•LTM Net Income Margins: 27.3%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~17% MORE in EPS & about the same in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $QLYS has to grow earnings at a 16.02% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be less than the (16.02%) required growth rate:
2024E: $5.19 (-1.5% YoY) *FY Dec
2025E: $5.71 (10.1% YoY)
2026E: $6.67 (16.8% YoY)
$QLYS has an excellent track record of meeting analyst estimates ~2 years out, so let’s assume $QLYS ends 2026 with $6.67 in EPS & see its CAGR potential assuming different multiples
35x P/E: $233.45💵 … ~13.5% CAGR
32.5x P/E: $216.77💵 … ~10.4% CAGR
30x P/E: $200.10💵 … ~7.3% CAGR
As you can see, $QLYS needs to trade closer to >32.5x earnings for it to have double-digit return potential
This isn’t unreasonable given $QLYS historical valuation & financial efficiency — moreover, $QLYS has maintained fairly strong support near that 32.5x level
$QLYS appears to be a great business treading for a fair price
Albeit, for investors that prefer to consider the downside first (as myself) the current assumptions don’t leave us with a margin of safety
I’d become interested in $QLYS closer to 28x earnings or at $145💵 (~12.5% below todays price)
I understand I may be asking for too much on the valuation — however I don’t view it that way considering competition in the sector & $QLYS slowdown in growth which could lead to a re-rating in its multiple
[...]
Offshore
Dimitry Nakhla | Babylon Capital® ~2 & 1/2 months ago I shared my “sober valuation analysis 🧘🏽♂️” on $QLYS stating: “Albeit, for investors that prefer to consider the downside first (as myself) the current assumptions don’t leave us with a margin of safety…
#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. "- Dimitry Nakhla | Babylon Capital®
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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. "- Dimitry Nakhla | Babylon Capital®
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AkhenOsiris
RT @qcapital2020: The only logical outcome here is he becomes a Billionaire, gets arrested for market manipulation, the apes storm prison to save him, riots break out everywhere, the FED cut rates to zero, New President Trump gives him a presidential pardon, he becomes new FED chairman. $GME
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RT @qcapital2020: The only logical outcome here is he becomes a Billionaire, gets arrested for market manipulation, the apes storm prison to save him, riots break out everywhere, the FED cut rates to zero, New President Trump gives him a presidential pardon, he becomes new FED chairman. $GME
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Dimitry Nakhla | Babylon Capital®
Analyzing why See’s Candy was one of Berkshire’s greatest investments (acquired for $25M, meanwhile the company has earned over $2B pre-tax), Warren Buffett writes:
“The company had a huge asset that did not appear on its balance sheet: a broad and durable competitive advantage that gave it significant pricing power”
— 2014 Berkshire Shareholder Letter 📝
Your assessment of a company’s competitive advantage and its durability is one of the most critical factors when investing ‼️
#stocks #investing
tweet
Analyzing why See’s Candy was one of Berkshire’s greatest investments (acquired for $25M, meanwhile the company has earned over $2B pre-tax), Warren Buffett writes:
“The company had a huge asset that did not appear on its balance sheet: a broad and durable competitive advantage that gave it significant pricing power”
— 2014 Berkshire Shareholder Letter 📝
Your assessment of a company’s competitive advantage and its durability is one of the most critical factors when investing ‼️
#stocks #investing
tweet