Offshore

⁠Dimitry Nakhla | Babylon Capital®
RT @ftr_investors: 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗧𝗮𝗹𝗸 #𝟰𝟭
Name: Aria Radnia @QualityInvest5
Age: 19
Residence/Country: Canada
Invests since: November 2021

𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻
I’m currently a full-time student and also work at FinChat @finchat_io (the world’s best stock research platform, which you can try for free). I also have prior experience in sales, which has been instrumental in shaping the person I am today. The lessons learned from rejection and the process of perfecting a "pitch" apply universally throughout life and only improve with time.

I first became interested in investing when a close friend pitched me General Motors $GM as an undervalued Peter Lynch-style investment based on a low P/B valuation. Looking back, it’s hilarious to see how far I've come from that style of investing. Like everyone else, I initially started investing to grow my money.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆?
Today, I'd categorize my approach as a concentrated portfolio of quality + growth. I place significant emphasis on owning high-quality, wide-moat businesses but am willing to sacrifice some quality if it means a notable increase in growth. My recent purchase of Uber $UBER is the perfect example of this strategy.

Uber is a strong-moat business that is difficult to compete with—but not impossible. A 10/10 moat business would be something like $SPGI S&P Global, where the moat is literally protected by regulations and customer incentives. But at the same time, that business may only grow revenues in the mid- to high-single digits annually. Just off a whim, I'd rank $UBER around an 8/10 in terms of moat strength, but with a 30%+ FCF growth profile, that more than makes up for the slightly weaker moat, in my opinion. Of course not every business fits this mold, but in general those are the two things I put the most emphasis on, a wide moat and ideally a business that grows its earnings/FCF around the 15% mark (or higher) for the foreseeable future!

𝗛𝗼𝘄 𝗺𝗮𝗻𝘆 𝘀𝘁𝗼𝗰𝗸𝘀 𝗮𝗿𝗲 𝗰𝘂𝗿𝗿𝗲𝗻𝘁𝗹𝘆 𝗵𝗲𝗹𝗱 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼?
Currently, I own seven stocks, but my smallest holding, TransMedics $TMDX, hovers around a 1% position—negligible in terms of overall performance, as it's more of a small speculative bet.

𝗪𝗵𝗶𝗰𝗵 𝘀𝗲𝗰𝘁𝗼𝗿𝘀 𝗱𝗼 𝘆𝗼𝘂 𝗺𝗮𝗶𝗻𝗹𝘆 𝗳𝗼𝗰𝘂𝘀 𝗼𝗻?
Technically, every holding (except TransMedics) in my portfolio is a tech company. I'm not concerned about sector concentration—that's kind of the goal with this investing style. As long as they have different risk factors (which they do), it's not an issue for me.

𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝗵𝗶𝗴𝗵𝗲𝘀𝘁 𝗰𝗼𝗻𝘃𝗶𝗰𝘁𝗶𝗼𝗻 𝘀𝘁𝗼𝗰𝗸𝘀?
$AMZN - Amazon is my highest-conviction bet, purely based on weighting—it’s 30% of my portfolio. AWS alone is a business with potentially decades of runway. Over a very long time horizon, I see nothing that could derail it from achieving above-market returns, making valuation less important the longer you hold.

$ASML - ASML, similar to AWS, has a long runway, and almost nothing can derail it.

$MA - Mastercard has a similar story, but arguably the widest moat of the three.

$UBER - Uber, I actually think will outperform all three of these companies for the more immediate term (the next 3–5 years).

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝘀𝘁𝗼𝗰𝗸 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗵𝗶𝗴𝗵𝗲𝘀𝘁 𝗿𝗲𝘁𝘂𝗿𝗻?
Because I've continuously averaged up on my holdings, my total Amazon $AMZN position sits at a 40% gain. But in terms of my most accretive buys, I have shares of Amazon at $106, which translates to a 117% return.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗯𝗶𝗴𝗴𝗲𝘀𝘁 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗺𝗶𝘀𝘁𝗮𝗸𝗲 𝘆𝗼𝘂 𝗵𝗮𝘃𝗲 𝗺𝗮𝗱𝗲?
Selling based on short-term concerns, worrying that t[...]

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