Bet your own money, not OPM, to learn and win

I was excited to attend my first class on investing principles in graduate school. I was finally with like-minded individuals who share my pursuit of investing excellence. My first conversation with a classmate dulled my spirits. We discussed everything about a stock that we both liked. Our knowledge on its business model, finances, history, management, … Continue reading Bet your own money, not OPM, to learn and win

To AT&T and Comcast: take your head out of the sand

Fans of Roku and Amazon Fire might have been surprised when AT&T-owned HBO Max - the almighty channel featuring Game of Thrones and Southpark - would not be directly available to them (there is a workaround, albeit cumbersome). They might be shocked again upon realizing that Comcast-owned Peacock would likely be unavailable too. Roku and … Continue reading To AT&T and Comcast: take your head out of the sand

Excellent progress made by this advantaged acquirer of healthcare IT

The story of MTBC Inc (NASDAQ: MTBC) keeps getting better. It is proving its potential to compound capital in the long-term as an advantaged acquirer. MTBC has made plenty of progress since my previous article. It is executing its M&A playbook well. MTBC acquired Meridian Medical Management (a former GE Healthcare IT company) less than … Continue reading Excellent progress made by this advantaged acquirer of healthcare IT

David will win against the Goliaths in TV streaming

Roku Inc (NASDAQ: ROKU) is the market-share leader in connected TV (CTV) with a 47% share, impressively beating second-place Amazon (85x Roku’s mkt cap) that has 40% share. Roku grew topline by 3.5x and its share price by 7.5x in the past 4 years, despite going head-to-head against mega-cap media peers (Amazon, AT&T, Comcast etc). … Continue reading David will win against the Goliaths in TV streaming

Expect hearty returns from this healthcare IT firm with a strong M&A platform

MTBC Inc (NASDAQ: MTBC) is a healthcare IT company that provides SaaS-based critical back-office services to physician groups and hospitals. The company has emerged as an advantaged acquirer of providers of backend healthcare technology. It acquired 5 companies from 2006-14, and accelerated the pace of acquisitions to 15 from 2014-20 after going public in 2014. … Continue reading Expect hearty returns from this healthcare IT firm with a strong M&A platform

How to generate extreme returns (Part 2) – The market exists to serve, not to guide.

In ground rules, I stated that “Your manager seeks to avoid permanent losses, but not quotational losses. A security can trade at any price, hence price volatility can never be avoided.” That a security can trade at any price should be both seductive and intimidating. The stock bought at $10 yesterday can trade at multiples … Continue reading How to generate extreme returns (Part 2) – The market exists to serve, not to guide.

How to generate extreme returns (Part 1) – an introduction

First published on 2/29/20. Revised on 4/11/20. My goal as an active investor is to out-perform standard stock indices by a large margin over an extended period. A standard stock index is a formidable opponent, as the vast majority of active investors would attest. Most generate returns insufficient to beat a passive investment in a … Continue reading How to generate extreme returns (Part 1) – an introduction

Get hooked to this maker of tobacco alternatives (77% upside)

Turning Point Brands (NYSE: TPB) is a manufacturer and marketer of OTP (Other Tobacco Products) and hemp-derived CBD products. Attractive product economics, in the form of non-cyclical demand and strong brand loyalty, support pricing power, consistent margins and cash flows, and high returns on capital (~40% gross margin, ~10% FCF margin, 20% ROIC). TPB stock … Continue reading Get hooked to this maker of tobacco alternatives (77% upside)

Buy stocks now

The headlines appear more threatening every day. Increasing infections and deaths from Covid-19 are forcing quarantines at an unprecedented scale. The economic fallout is certain to be bad, and the timing of the recovery uncertain. Almighty corporations such as Boeing and Delta are seeking state-backed bailouts reminiscent of AIG and General Motors in the Lehman … Continue reading Buy stocks now

Airport operator ready for take-off (80% upside)

Corporacion America Airports SA (NYSE: CAAP) is the largest private operator of airports (by number of airports), having a concentration of concessions in Argentina and Latin America. The airport operator has a resilient, utility-like business model with limited competition and high returns through the cycle. The icing is a capable, long-term-oriented controlling shareholder (>80% stake) … Continue reading Airport operator ready for take-off (80% upside)