longtermmindset

Small Cap Stocks now underperforming Mega Cap Tech Stocks by the largest margin in history

You can’t say “I’m going to hold this stock for 5-10-20 years”. You can't predict the future. No, you are going to hold it as long as management executes. It could be 3 months or 30 years. Most companies will only deserve to be rented. Ownership is earned.

Who are your favourite investors and what have you learned from them? Here’s my list: • Aswath Damodaran - judge companies based on principles from corporate finance, look for high return assets financed by low cost debt. • Terry Smith - focus on the highest quality business models, value using FCF. • Chuck Akre - concentrate on your best ideas, have low turnover and invest in Constellation Software! • Dev Kantesaria - look for monopolies, organic growth, operating efficiency and recurring revenue.

True wealth:

R.I.P Gartner. You don’t need expensive analyst subscriptions anymore. You can now generate full industry reports using Grok 4 and public data. Here’s the prompt that turns Grok 4 into a full-stack market research analyst:

Druckenmiller on why you should never invest in the present. "It doesn't matter what a company's earning, what they have earned - you have to visualise the situation 18 months from now - that's where the price will be".

I have recommended only one book on @X, Outlive by @PeterAttiaMD. Now I am recommending a second one, which is as well written and important, The 5 Types of Wealth by @SahilBloom. In short, the book is a guide to how to live your life. The earlier in your life you read it, the better your life will be. Sahil compiles decades of wisdom in a few hundred pages with powerful charts that will cause you to make positive changes in your life. I like asymmetric investments and I don’t know of a better return than this book. Read it. You will thank me and Sahil.

My 10 best ideas for companies with the strongest moats: 🧵 1. $AMZN Competitive Moat: It's marketplace receives more than 300 million visits every month creating strong network effects. It currently operates 121 warehouses across the US which makes it impossible for any newcomer to match its selection and speed of delivery. It has multi-billion businesses running on AWS that creates high switching costs. Plus, this segment has become increasingly capital intensive which makes the industry concentrate around the big providers. - 5 year revenue CAGR: 13% - Gross margin: 48% - Forward P/E: 36

Peter Lynch once said: “When stocks are attractive, you buy them. Sure, they can go lower—I’ve bought stocks at $12 that went to $2, but then they went to $30.” Here are 10 golden rules from Peter Lynch that will make you a better investor:

Lots of discussion on whether high CAPEX is good or bad. Here's the real answer: CAPEX is good if it can provide a high return on invested capital. It's that simple. But if you want more nuance, keep reading. If a company's return on CAPEX is higher than the cost of capital, intrinsic value is created. If the company's return on CAPEX is lower than the cost of capital, intrinsic value is destroyed. If the company's return on CAPEX is the same as the cost of capital, the company is running on a treadmill going nowhere, intrinsic value is neutral. This means that if a business can reasonably predict a high return on invested capital, they should spend as much money as possible until they predict future spending will yield lower returns than cost of capital. Some examples through history: Google Cloud margins went from -60% to +17% over the past 5 years while making significant CAPEX investments. Google Cloud is now highly profitable and generating $900 million in operating income in just the past quarter. Their return on invested capital is higher today than it was 5 years ago, after making these investments. AWS is a $110 billion dollar business that has 37% margins. That's a very large and highly profitable business. The returns on their invested capital have been extremely high. Netflix spent billions, for years, building out a global streaming library with hundreds of millions of subscribers, now they generate $7b in free cash flow per year. This CAPEX spend (spend on content) had an extremely high ROI. Booking spends billions per year advertising on Google to aggregate demand for travel. Although this isn't CAPEX per se, marketing budgets can be viewed the same way, and it has a consistently high return on invested capital. The point here is it's not about how much a company invests, it's about what the return is on invested capital. If the returns are reasonably predictable and high, the company should invest as much as possible to the extent of those high returns.

Temperament > Intellect

Buy damaged stocks. Avoid damaged companies.

This is why I haven't added analyst price targets to Qualtrim. Wall Street is great at telling you what already happened. There is no value to it. There's no alpha to be had, nothing to be gained. Wall Street price targets are just an arbitrary number floating around the current stock price.

I dagens ledare på @dagensindustri kan ni läsa om Daniel Waldenströms forskning som visar att vägen till jämlikhet är att göra det möjligt för fler att bygga en privat förmögenhet (inte att beskatta bra entreprenörer) Retwitta så lottar jag ut några x av hans bok i ämnet.

Well put:

@mastenmast @Borspodden @NordnetSE Spelar ingen roll men är inte det där nuvarande VD, Marangoni?

@Borspodden @NordnetSE På tal om look-alikes, White Pearl Technologys nyligen avgångne VD.

@mastenmast Bra smak 🙏

Aldrig lidit av fetma men är det något som garanterat skulle kunna ta mig dit är det ⬇️

@HerrKamrer @AbcpokerBI Min take på reaktionen är att de går tillbaka till mer prisvärda erbjudanden. De har ju höjt priserna brutalt mycket senaste åren men går tillbaka till mer value offering.

@AbcpokerBI Frågan är om dagens uppgång på 4,5% är mer en short coverage att marknaden drar en lättnadens suck att det inte var värre? Svårt att säga. Vad är din take?

$MCD Q2 kommer inte svagt på försäljning ungefär flat y-o-y. Här hade jag räknat med 5% tillväxt. Går man längre ner i resultaträkning ser det däremot bättre ut. Kostnadskontroll, disciplin och lojalitetsprogram bra. Hade hoppats på nytt årslägsta idag för att öka 4-6% 💰