WorldlyInvest Weekly #3
Happy birthday Peter Lynch!; Replicating Berkshire Hathaway; Primer on quantum computing; Learning from market history; 23 stock ideas.
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Quote of the Week
Happy birthday to Peter Lynch!
When you sell in , you always sell cheap.
— PETER LYNCH
ICYMI
My investment thesis on Electromed (ELMD), a high-quality microcap company with strong gross margins, improving profitability, and a unique position in the growing respiratory care market. However, there’s just one small caveat…
Insight of the Week
Replicating Buffett
writes about Buffett's acquisition of Berkshire Hathaway was a result of his shrewd investment decisions and the company's struggles in the textile industry. Bill Ackman's bid to transform Howard Hughes Holdings Inc. into a modern-day Berkshire Hathaway reflects his longstanding admiration for Berkshire's business model.Essential Readings
Primer on Quantum Computing
writes an industry primer on quantum computing, addressing key topics such as Google Willow's quantum computing achievement, the engineering challenges behind quantum computing, and the debate about the timeline for practical quantum computing.Learning from market history without costing yourself in the present
writes about the parallels between historical financial events and modern market trends. Examples from the past, such as accounting manipulation, excessive infrastructure investment, and speculative buying, and draws comparisons to current situations like AI spending and market bubbles.Fundsmith 2024 annual letter
discusses Terry Smith's recent underperformance as a fund manager and explores the concept of temporary versus structural challenges in investing. “The problem for buying a high quality business is always price. When a business that has consistently outperformed the market, it is hard for most high quality investors to miss them.”Weekly Term from The Satirical Dictionary of Finance
TARIFFS: Taxes on imports designed to protect local industries—or so they say. In reality, they’re the financial equivalent of shooting yourself in the foot to make your competitor limp. Once championed by President-elect Donald Trump as a tool to "make America great again”.
Recommended Book
One Up On Wall Street
It’s Peter Lynch’s birthday!
Celebrate the legendary investor by diving into his classic One Up On Wall Street. In his book, Peter shows how individual investors can gain an edge by spotting opportunities others overlook.
Stock Ideas
20 OTC Markets Oddities
shares a list of 20 OTC-traded companies with real assets and earnings. Each company is briefly described, offering insights into their operations and financial standing.Blackstone Inc (BX)
writes provides an extensive overview of the Blackstone Group Inc., covering its history, organizational structure, business segments, financial performance, and key industry trends.The company recorded a huge increase in investment in passive, liquid, low-cost investments such as ETFs and saw its assets under management (AUM) cross $1 trillion in 2023.
Private equity business consists of a mix of fund types, including drawdown funds and evergreen funds, with a focus on long-term, high-quality investments.
Blackstone has expanded its business segments to include real estate, private equity, credit, insurance, hedge fund solutions, infrastructure, life sciences, growth equity, and multi-asset investment programs, catering to high net-worth investors.
Nagarro
writes an in-depth look at Nagarro, a billion-euro German tech company that has taken a unique approach to its organizational structure and business model.The company operates with a flat, non-hierarchical structure and utilizes small autonomous teams to provide IT services.
They focus on digital product engineering for large clients like German automakers, retailers, and banks.
Nagarro has three key moats: switching costs, organizational model, and process power.