Devang B

@realroseceline hi Chief - Elf Beauty? Haha

I bought a new stock for my portfolio today. Only the second new position I have started this entire year. It is a $3.5b small cap non tech company that I have admired for many years, but I was never able to buy it because the valuation always felt too expensive. I think one of the hardest things in investing is accepting that a great business and a great investment are not always the same thing. Sometimes the business is incredible for years while the stock itself is a terrible investment simply because expectations and valuation became disconnected from reality. Ironically my first purchase this year was $NOW, which at the time was considered one of the worst buys imaginable on this platform and I got totally killed in here. People were acting like the business completely broke overnight. A few weeks later sentiment flipped and suddenly it became a loved companies again. The fascinating part is the actual business barely changed during that period. Mostly the stock price and the narrative changed. That is one of the biggest lessons over time. Social media sentiment moves much faster than business fundamentals. Investors often confuse volatility with change. A stock declining 25% does not automatically mean the business is suddenly 25% worse. Another thing I have learned is that patience in investing looks stupid until it suddenly looks disciplined. I only bought 2 new stocks this year because truly great opportunities are actually pretty rare. Most people trade constantly because activity feels productive, but some of the best returns I have ever had came from doing almost nothing for long stretches and then acting aggressively when price, expectations, and quality finally aligned. What interests me most is not next quarter or even next year. I care far more about what this business can potentially look like 5-10 years from now. Is the moat strengthening? Are the unit economics improving? Does management allocate capital intelligently? Those questions matter infinitely more to me than whether social media currently loves or hates the stock. I no longer really share my exact buys and sells publicly the way I used to. Not because I am trying to be secretive, but because I do not want people blindly copying me without fully understanding the risks, valuation, time horizon, etc. A stock that fits my portfolio, psychology, and long term expectations may be completely wrong for someone else. I think social media has created this idea that investing is about copying and cloning instead of thinking. But real investing is much deeper than that. Two people can buy the exact same stock and have completely different outcomes because one understands what they own and the other is simply following a narrative. 🌹

@realroseceline Knowing you and reading your posts - Synopsys, Lam Research and KLA? I think Broadcom at 30% lower beats them all

There are 3 businesses on this list I really like, any guesses?

@BarrySchwartzBW I enjoy your podcasts! Very decent and I’m sure you guys will do well in the fullness of time

bunch of names with negative ytd returns even though earnings are growing - even accelerating - I own all - clients own most.

@realroseceline Do you think Domino’s can become the next McDonald’s?

Let’s play ask me anything, GO! 🌹

@DimitryNakhla Would you own any today?

The Installed Base — One of the Most Durable Moats in Investing. The concept is simple: a company sells a piece of capital equipment or a platform. That machine, device, or system becomes deeply embedded in the customer’s operation. From that point forward, the company generates years — sometimes decades — of high-margin recurring revenue through consumables, parts, software, and services tied directly to that installation. The customer can’t easily leave. Switching means downtime, retraining, recertification, and massive capital expenditure. The installed base becomes the moat. Several companies that have mastered this model: $ISRG — every da Vinci surgical system placed in a hospital is a long-term revenue stream. Instruments, accessories, and services follow every installation. Surgeons train on it, hospitals build workflows around it, and switching is virtually unthinkable. $GE — jet engines are sold at thin margins. The real business is the decades of parts, maintenance, and services that follow every engine installed on a commercial or military aircraft. One engine. Decades of revenue. $ASML — every EUV lithography machine placed in a fab locks that customer into ASML’s ecosystem of components, software, and services. There is no alternative. The installed base is global and irreplaceable. $LRCX — semiconductor fabs are built around Lam’s etch and deposition equipment. Once their systems are qualified and integrated into a production process, the switching costs are enormous. The installed base grows with every new fab built globally. $IDXX — veterinary clinics and labs run on Idexx diagnostic analyzers. Once placed, those instruments generate a continuous stream of proprietary reagent and consumable revenue. The analyzer is the razor. The consumables are the blades. $DHR — sells diagnostic and life science instruments into labs, hospitals, and research facilities worldwide. Once embedded, the instruments anchor years of high-margin consumable, reagent, and software subscription revenue.

@DimitryNakhla This is Buffett-like advice!

𝐋𝐢𝐟𝐞 𝐡𝐚𝐜𝐤: 𝐭𝐡𝐞 𝐨𝐧𝐞 𝐭𝐡𝐢𝐧𝐠 𝐲𝐨𝐮 𝐜𝐚𝐧 𝐚𝐥𝐰𝐚𝐲𝐬 𝐜𝐨𝐧𝐭𝐫𝐨𝐥 𝐢𝐬 𝐲𝐨𝐮𝐫 𝐚𝐭𝐭𝐢𝐭𝐮𝐝𝐞. Think about that for a second. In every situation — no matter how difficult — there is a split second before you react. A window. And in that window, you get to choose: Glass half full or glass half empty. 𝐓𝐡𝐚𝐭 𝐜𝐡𝐨𝐢𝐜𝐞 𝐢𝐬 𝐚𝐥𝐰𝐚𝐲𝐬 𝐲𝐨𝐮𝐫𝐬. 𝐍𝐨 𝐨𝐧𝐞 𝐜𝐚𝐧 𝐭𝐚𝐤𝐞 𝐢𝐭 𝐟𝐫𝐨𝐦 𝐲𝐨𝐮. So if that’s true — if you always have the option to look at the other side, to find the positives, the hidden blessings, the lesson you’ll carry for life — 𝘸𝘩𝘺 𝘸𝘰𝘶𝘭𝘥 𝘺𝘰𝘶 𝘸𝘪𝘭𝘭𝘪𝘯𝘨𝘭𝘺 𝘤𝘩𝘰𝘰𝘴𝘦 𝘰𝘵𝘩𝘦𝘳𝘸𝘪𝘴𝘦? I get it. It’s not easy. Especially if you haven’t practiced it. But here’s what’s remarkable about the human brain — the more consistently you choose the positive lens, the more natural it becomes. You’re not just changing your mindset. You’re literally rewiring your brain. At some point, glass half full stops being a conscious choice and starts being your first instinct. And when that happens? It’s liberating. 𝙏𝙝𝙚𝙧𝙚’𝙨 𝙖𝙡𝙨𝙤 𝙨𝙤𝙢𝙚𝙩𝙝𝙞𝙣𝙜 𝙖𝙡𝙢𝙤𝙨𝙩 𝙢𝙮𝙨𝙩𝙚𝙧𝙞𝙤𝙪𝙨 𝙖𝙗𝙤𝙪𝙩 𝙜𝙚𝙣𝙪𝙞𝙣𝙚 𝙥𝙤𝙨𝙞𝙩𝙞𝙫𝙞𝙩𝙮 — 𝙞𝙩’𝙨 𝙘𝙤𝙣𝙩𝙖𝙜𝙞𝙤𝙪𝙨, 𝙞𝙩 𝙖𝙩𝙩𝙧𝙖𝙘𝙩𝙨 𝙩𝙝𝙚 𝙧𝙞𝙜𝙝𝙩 𝙥𝙚𝙤𝙥𝙡𝙚 𝙖𝙣𝙙 𝙤𝙥𝙥𝙤𝙧𝙩𝙪𝙣𝙞𝙩𝙞𝙚𝙨, 𝙖𝙣𝙙 𝙞𝙩 𝙝𝙖𝙨 𝙖 𝙦𝙪𝙞𝙚𝙩 𝙬𝙖𝙮 𝙤𝙛 𝙧𝙚𝙬𝙖𝙧𝙙𝙞𝙣𝙜 𝙮𝙤𝙪 𝙤𝙫𝙚𝙧 𝙩𝙞𝙢𝙚 𝙞𝙣 𝙬𝙖𝙮𝙨 𝙮𝙤𝙪 𝙣𝙚𝙫𝙚𝙧 𝙚𝙭𝙥𝙚𝙘𝙩𝙚𝙙. So next time life throws something at you — before you react, pause. Just one second. And ask yourself: What are all the positives I can take from this? Flood your brain with them. Make it a habit.

@realroseceline @wealthmatica Excellent observation

@wealthmatica Maybe it’s cheap but you have to compare apples to apples bc he sold half a billion and bought $10m

$PANW CEO bought freaking $10M worth of shares... Yeah I think it's fair to say Cyber is oversold.

@realroseceline So true and timely for you to point out.. I think Meta and potentially others could see significant drawdowns if capex discipline keeps fading

$META - Don’t forget who told you first while the market was doing backflips 🌹

@FinanceJack44 Yea but they bought at exceptional prices - these prices are “good” but nowhere near exceptional

I’ve seen a lot of people dunking on “compounding bros” recently, largely because favorites like $FICO $SPGI and $MA are down big YTD. Short term movements don't wreck the strategy though. Many investors have had incredible success using this relatively simple approach: Chris Hohn: 18% CAGR over 22 years Warren Buffet: 20% CAGR over 60 years Dev Kantesaria: 15% CAGR over 19 years I don't think these guys are too concerned with the current pullback.

@DimitryNakhla Watch out for Danaher and Copart - compounders which rarely go noticed and whilst the bottom may not be in, these are levels where double digit compounding and multiple expansion result in a lollapalooza effect

10 Quality Stocks Trading Within 15% of Their Lowest P/E Multiple In The Past 10 Years 💵 Stock Lowest P/E (10Y) | NTM P/E 1. $NOW 24x | 27x 2. $VRSK 23x | 26 3. $MA 22x | 25x 4. $DHR 19x | 22x 5. $AMZN 26x | 27x 6. $V 21x | 22x 7. $CPRT 19x | 20x 8. $CSU 15x | 16x 9. $DLO 12x | 13x 10. $MELI 29x | 29x

@realroseceline @wealthmatica I think valuation really matters but less so for high quality companies - this being said, FICO is even a good buy at 30x earnings, but it’s the valuation discipline that distinguishes great from good. Don’t get me wrong - “good” is still an exceptional outcome

@wealthmatica Why is it an obviously buy at 20.7x earnings but for example not 22x or 23x earnings? Is there really that big of a difference if you buy it and hold it for the next 10 years?

OK honestly though... When does $FICO become an obvious buy? For me, that's around $935/share. - Forward P/E: 20.7x $FICO

@stonkmetal How would the returns have been had you built a 20% stake in each of these? I predict very strong

I try to own compounding machines at reasonable prices. Here are 5 great compounders that are sadly too expensive for me📈 1. Rollins $ROL (29x forward EV/EBITDA) 2. Heico $HEI (29x) 3. IDXX Labs $IDXX (36x) 4. Mettler-Tolado $MTD (27x) 5. Cintas $CTAS (21x) Who else?

@long_equity Amazing portfolio - just add when Mr Market gets depressive and sell when it gets euphoric

Here’s the Long Equity portfolio and the main companies in the watchlist. What would you add or remove?

@realroseceline With your note, are we admitting narratives follows price action? Or why don’t we just agree that Mr. Market is overly depressed at the moment providing opportunity to the rational investor?

More thoughts on $SE What spooked the market today was not just that growth is slowing. It was the quality of the growth, and that is perceived to be a much bigger deal. In other words the thing I talk about frequently, the “economics”. $SE is still growing GMV fast and guiding to 25% next year, which on the surface sounds great. But GMV does not pay shareholders, EBITDA aka profitability does. What really matters is the economics, ie how much profit you generate for every dollar of GMV, and that ratio got worse mainly because logistics costs increased. When logistics eats your take rate, the operating leverage weakens. For years the bull case was straightforward. Scale the marketplace, improve logistics, monetize better, and let margins expand over time. If GMV grows fast then EBITDA should grow even faster by design. This quarter the market saw something different. GMV growing, but EBITDA per GMV falling. Then guidance for solid growth next year without an improvement in profitability. That combination made the market nervous because it raises the obvious question. If growth comes back but margins do not, what exactly are we scaling? Either growth is being subsidized (again), or logistics costs are higher than expected, or competition is forcing $SE to give up economics to defend market share. None of those outcomes are good for long term margins, and long term margins are what ultimately drive valuation (ie $DLO). The market will tolerate an investment phase if it believes operating leverage is coming later (ie $MELI). What the market punishes is growth that does not convert into profitability. Think of it like a treadmill where you are running fast but not actually going anywhere. The debate now is whether this is temporary or structural. If logistics costs are elevated because of expansion, then margins can recover once things normalize. That is what actually spooked the market. It’s not just about growth, but the fear that growth may not be as profitable as assumed. I am long $SE. 🌹

@DimitryNakhla Don’t get me wrong, a quality company nevertheless

@DimitryNakhla I feel the SBC is so damn high…

Synopsys $SNPS Q1 2026 Report 🗓️ ✅ REV: $2.41B (+65% YoY) ✅ EPS: $3.77 (+24% YoY) 💵 Board of Directors approved a replenishment of the company’s existing stock repurchase program with authorization to purchase up to $2B of stock

@DimitryNakhla Did you read the CFO’s comments, amazing stuff

Moody’s $MCO Q3 2025 Report 🗓️ ✅ REV: $2.01B (+11% YoY) ✅ EPS: $3.92 (+22% YoY)

@mply_cap If 30x forward earnings is the new definition of “steal”, sure

$AMZN and $SPGI are steals right now

@realroseceline A company which can compound at 12-15% over the long run, with a management that’s incredibly modest, adaptable and pensive should never be sold

$COST is an incredible business with a strong moat and great economics, but at the end of the day, it’s just a business. It’s not changing the world or curing cancer. It will keep compounding steadily, but if I ask myself whether I’d buy the whole thing at 50x earnings, the answer is no.

@DimitryNakhla Could you do one on Gartner and MSCI?

At 22x, $ZTS is at the low end of its decade-long multiple range, raising the question: How much further can its multiple compress? My view: most of the compression is likely behind us, with potential for multiple expansion driven by upward guidance and positive revisions 📈