When you are differing between an investment and a technical setup, what sort of analysis will you want to do before investing in a company versus a mid time frame trade? Do you do your own DCF work / look at any main metrics such as roic/management team/multiples?
When it comes to midterm swings, the main idea is to protect myself against offerings, toxic share structure and similar. I do not want my position to gap down massively. It is more the matter to try and have a good company.
When it comes to the long term, I only buy what I consider to be businesses with strong moats (which I counterbalance with the multiples I have to pay). Ideally the business I buy on this side has an indestructible moat, is founder-led, isnt leveraged, has a big TAM to grow into, knows how to deploy capital at a high return rate, has no concentration risk within its earnings...
Different approaches somewhat but ideally I can find a stock for the first category of trade that is as high-grade as the second part.
Excellent, thanks for the reply. Just starting to dabble in investing with day trade profits, really love the above philosophy you have outlined. I saw you bought LULU today, that was one I have been looking to buy just waiting to pull trigger down here. Love the product, brand name -> pricing power they have with the near 60% gm. Plenty of global market to grow into, good ROIC. Hopefully they can follow the likes of a NKE and be an above average top line compounder for the next 10+ years at 7/8% cagr
Great read, cheers for sharing.
When you are differing between an investment and a technical setup, what sort of analysis will you want to do before investing in a company versus a mid time frame trade? Do you do your own DCF work / look at any main metrics such as roic/management team/multiples?
Keep up the good work
When it comes to midterm swings, the main idea is to protect myself against offerings, toxic share structure and similar. I do not want my position to gap down massively. It is more the matter to try and have a good company.
When it comes to the long term, I only buy what I consider to be businesses with strong moats (which I counterbalance with the multiples I have to pay). Ideally the business I buy on this side has an indestructible moat, is founder-led, isnt leveraged, has a big TAM to grow into, knows how to deploy capital at a high return rate, has no concentration risk within its earnings...
Different approaches somewhat but ideally I can find a stock for the first category of trade that is as high-grade as the second part.
Excellent, thanks for the reply. Just starting to dabble in investing with day trade profits, really love the above philosophy you have outlined. I saw you bought LULU today, that was one I have been looking to buy just waiting to pull trigger down here. Love the product, brand name -> pricing power they have with the near 60% gm. Plenty of global market to grow into, good ROIC. Hopefully they can follow the likes of a NKE and be an above average top line compounder for the next 10+ years at 7/8% cagr
Hell yeah Lukas
Big Fan!
Glad to hear it!
Great Article
Thank you Brett