Hey Centrino. It's time to move to the Netherlands then ;-) But yeah, i totally get what you mean. This video was more about the concept of slow compounding, rather than decent yielding dividend stocks.
As always good content E-DGI!!! @11:12 Some remarks regarding your O Realty one-pager. I really love how you created those one-pagers (could be a separate how-to tech video :) ) however it has some flaws probably outside your power to fix. Competitors listed are: SPG, KIM, AGNC. KIM, SPG as a mall REIT , AGNC as a MREIT are certainly not competitors of O. You mention you have a fair value of 45.74 while the reports I read written by REIT experts have O at a fair value of around $100 so you might want to dig a little deeper how your FV is calculated for REITs because that is a big gap. All the Best!
Hi Al Pi, thank you so much for this useful feedback! Regarding the competitors: this is manually populated by me and it just shows how little I know about their industry 😅 Regarding the valuation, I'm not doing anything else than taking their AFFO numbers and assuming a certain growth for it. Do you know how the other analysts came to their numbers? I'd really love to know. Usually I experience that analysts want to stay in a range compared to the current share price and usually they tend to be more optimistic so that they don't look like fools by being way too off (i also saw once some academic research about it). However, valuing REITs is not an easy thing, so i'd really love to read other analysts opinion and how they got to their fair value price 🙂 Thank you for the kind words!
@@EuropeanDGI In that case you should enter STOR, ADC and SRC as competitors for example (there are more ) I'm not 100% sure since it was a while back but I believe the undervalued status of O lies in the fact that the market has not priced in the added value they got after they took over VEREIT. Yes doing a proper valuation of a REIT is a specialized skill that's why I trust other people do those calculations for me. 😀 All the best! I wish you were on a different platform with the dividend group like discord since I don't have FB
@@EuropeanDGI Another thing I'm seeing REIT guys doing is looking deeply into the NAV values for REITs and seeing where it's trading compared to NAV. (but you need access to specialized datasources that provide NAV values)
I would argue that Facebook indeed has high switching costs. What makes you keep using their app is your friends and people you are following. It's the whole network of people that's difficult to switch, not the app. You can change the app with little effort but then better make sure your friends like that app more too ;)
I like MMM. I have some in my portfolio and would like to buy some more especially with this yield. Did you think about valuing it but taking into consideration possible litigation risk and how could it impact company results (balance sheet) in the future? Of course if company wins then it is a bargain now but what if it loses or gets a settlement? Could you try to value it depending on the possible outcomes of the litigation?
I am cautious of Realty Income. For growth they rely on acquisitions only due to strong limitations for organic rent increase. I don’t think it exceeds 1%. Acquisitions were successful in the past, but competition is now present and we were surfing on very low interest rates for so long. Should higher interest rates persist it will become a dog.
Honestly I'd never say its a bad idea for a few reasons. We as European (I'm assuming) never know where fx is going to go. So if you believe the company is a good company to invest in at its current price regardless of fx I'd say do it. Back in 06/07 it would have been ludicrous to suggest that one day USD/GBP would be below 1.7 but look where we are today at 1.17 roughly 32% lower. Now imagine if after the Financial Crisis when it was at 1.5 you thought I'll wait it will go up again and I'll invest then, you would still be waiting to this very day. So as I said earlier if you believe the company is a good, strong company with strong FCF and growth and are happy to be a shareholder at this price I would regardless of fx.
Of course you should look at the company first, however the exchange rate has me seeing an opportunity into increasing my share of European stocks for less taxes / less dependancy on the US market and upside potential on FX. The European central bank usually mimics the FED so I have a hope for the exchange rate rebounding. Also this might be the opportunity for me to invest in German industry if there is a crash this winter or if they survive without one. I have been contemplating about opening a position in BASF for example
Spotify :) Great slow compounder, they are reporting operating loss because of the endless investments in the business. The company is well operating and FCF positive. Stock is at the bottom nobody cares :) Same as Microsoft was growing its business, and nobody really cared about it. Now after stock shooted up to the moon people are cheering MSFT. I wouldn't disregard facebook so fast. They are investing in AI, Reels, shopping experience on all of their apps + oculus hardware and all the eco system included such as meta quest store, purchases in the meta itself, gaming business and etc... Tik tok yes, but I have strong feeling that it may be as short term hype and its only short video platform no more no less
Hi Doorr! Definitely, Spotify is a nice example as well. Though, i feel their moat might not be so strong as there are relatively low switching costs. But their product is awesome! I'll have a brief look at it this week Regarding $FB, i own Facebook already for quite some time, but it's all about the network effect. If another app is becoming popular then it can easily impact facebook very hard. There is only so much time we can spend online. However, I do agree that zuck is trying to innovate his way out of it. He really understands the business he operates and what it needs to do to stay on top. That's why I'm long $FB, especially at these prices. Thanks for stopping by and sharing your thoughts 🙏
The fact that Chamath has a lot of failures with for instance his SPACS, doesn't mean that everything he says is BS. I think we can learn from a lot of people as long as we want to learn.
“When the student is READY, the teacher will appear” -Chinese Proverb Yes we can learn from everyone. Chamath is smart. But his SPACs revealed his true nature. Cash-in on naive investors
As a US based investor the SPAC craze was WallStreet professional’s ripping off average investor’s. Chamath was not the only one to intentionally profit from the ignorance of “know nothing” investor’s.
Which slow compounders do you have in your portfolio?
Preparing to buy you some coffees! :)
Great content as usual, would be nice an update of Chesnara and/or Vonovia
definitely about chesnara. I'm avoiding Vonovia right now, but how low can it go? It's not like they're at the cusp of bankruptcy!
Perfect, great video.
I understand the concept.
But stocks 2 and 3 have very low dividend yields.
So after withholding tax and Belgian taxes, there nothing left 🙂
Hey Centrino. It's time to move to the Netherlands then ;-) But yeah, i totally get what you mean. This video was more about the concept of slow compounding, rather than decent yielding dividend stocks.
@@EuropeanDGI Thanks!
As always thank you for your videos!!
My pleasure!
As always good content E-DGI!!! @11:12 Some remarks regarding your O Realty one-pager.
I really love how you created those one-pagers (could be a separate how-to tech video :) ) however it has some flaws probably outside your power to fix. Competitors listed are: SPG, KIM, AGNC. KIM, SPG as a mall REIT , AGNC as a MREIT are certainly not competitors of O.
You mention you have a fair value of 45.74 while the reports I read written by REIT experts have O at a fair value of around $100 so you might want to dig a little deeper how your FV is calculated for REITs because that is a big gap.
All the Best!
Hi Al Pi, thank you so much for this useful feedback!
Regarding the competitors: this is manually populated by me and it just shows how little I know about their industry 😅 Regarding the valuation, I'm not doing anything else than taking their AFFO numbers and assuming a certain growth for it. Do you know how the other analysts came to their numbers? I'd really love to know. Usually I experience that analysts want to stay in a range compared to the current share price and usually they tend to be more optimistic so that they don't look like fools by being way too off (i also saw once some academic research about it). However, valuing REITs is not an easy thing, so i'd really love to read other analysts opinion and how they got to their fair value price 🙂
Thank you for the kind words!
@@EuropeanDGI
In that case you should enter STOR, ADC and SRC as competitors for example (there are more )
I'm not 100% sure since it was a while back but I believe the undervalued status of O lies in the fact that the market has not priced in the added value they got after they took over VEREIT.
Yes doing a proper valuation of a REIT is a specialized skill that's why I trust other people do those calculations for me. 😀
All the best!
I wish you were on a different platform with the dividend group like discord since I don't have FB
@@EuropeanDGI Another thing I'm seeing REIT guys doing is looking deeply into the NAV values for REITs and seeing where it's trading compared to NAV. (but you need access to specialized datasources that provide NAV values)
Great plan, but need to factor inflation
I would argue that Facebook indeed has high switching costs. What makes you keep using their app is your friends and people you are following. It's the whole network of people that's difficult to switch, not the app. You can change the app with little effort but then better make sure your friends like that app more too ;)
Aha, so that is why there are so many join requests today into the group :)
hehe, i believe so yes!
I like MMM. I have some in my portfolio and would like to buy some more especially with this yield. Did you think about valuing it but taking into consideration possible litigation risk and how could it impact company results (balance sheet) in the future? Of course if company wins then it is a bargain now but what if it loses or gets a settlement? Could you try to value it depending on the possible outcomes of the litigation?
I am cautious of Realty Income. For growth they rely on acquisitions only due to strong limitations for organic rent increase. I don’t think it exceeds 1%. Acquisitions were successful in the past, but competition is now present and we were surfing on very low interest rates for so long. Should higher interest rates persist it will become a dog.
Is buyer US stocks still a good idea? Or is it to expensive to buy because of the high dollar price? ( i'm a beginner dividend investor)
Honestly I'd never say its a bad idea for a few reasons. We as European (I'm assuming) never know where fx is going to go. So if you believe the company is a good company to invest in at its current price regardless of fx I'd say do it. Back in 06/07 it would have been ludicrous to suggest that one day USD/GBP would be below 1.7 but look where we are today at 1.17 roughly 32% lower. Now imagine if after the Financial Crisis when it was at 1.5 you thought I'll wait it will go up again and I'll invest then, you would still be waiting to this very day. So as I said earlier if you believe the company is a good, strong company with strong FCF and growth and are happy to be a shareholder at this price I would regardless of fx.
+1 to what Jacob said 👍
Of course you should look at the company first, however the exchange rate has me seeing an opportunity into increasing my share of European stocks for less taxes / less dependancy on the US market and upside potential on FX. The European central bank usually mimics the FED so I have a hope for the exchange rate rebounding. Also this might be the opportunity for me to invest in German industry if there is a crash this winter or if they survive without one. I have been contemplating about opening a position in BASF for example
Xbox 380? My guy...
Spotify :) Great slow compounder, they are reporting operating loss because of the endless investments in the business. The company is well operating and FCF positive. Stock is at the bottom nobody cares :) Same as Microsoft was growing its business, and nobody really cared about it. Now after stock shooted up to the moon people are cheering MSFT.
I wouldn't disregard facebook so fast. They are investing in AI, Reels, shopping experience on all of their apps + oculus hardware and all the eco system included such as meta quest store, purchases in the meta itself, gaming business and etc... Tik tok yes, but I have strong feeling that it may be as short term hype and its only short video platform no more no less
Hi Doorr! Definitely, Spotify is a nice example as well. Though, i feel their moat might not be so strong as there are relatively low switching costs. But their product is awesome! I'll have a brief look at it this week
Regarding $FB, i own Facebook already for quite some time, but it's all about the network effect. If another app is becoming popular then it can easily impact facebook very hard. There is only so much time we can spend online. However, I do agree that zuck is trying to innovate his way out of it. He really understands the business he operates and what it needs to do to stay on top. That's why I'm long $FB, especially at these prices.
Thanks for stopping by and sharing your thoughts 🙏
Your introducing Chamath 🐍 to your viewers and you call your self value and dividend investor? 🤡
The fact that Chamath has a lot of failures with for instance his SPACS, doesn't mean that everything he says is BS. I think we can learn from a lot of people as long as we want to learn.
“When the student is READY, the teacher will appear”
-Chinese Proverb
Yes we can learn from everyone. Chamath is smart. But his SPACs revealed his true nature. Cash-in on naive investors
As a US based investor the SPAC craze was WallStreet professional’s ripping off average investor’s. Chamath was not the only one to intentionally profit from the ignorance of “know nothing” investor’s.