To me, trying to find multi decade 100 baggers when they're babies is just a waste of time. What works is 1:Buy quality stocks when they are temporarily in trouble and not liked by the market. You need to have cash in hand to be able to it. 2:Buy companies that you and your friends have recently become a customer of. Looking back, I could've bought Amazon, Apple, Costco, Netflix, Home Depot, Lululemon when we first paid money to them and liked the service we got and would have made tons of money. It doesn't even have to be a global company. I could have bought a Canadian company called Dollarama which has over 25% ROIC per year last 10 years.
Good comment. A man with a plan. Buying quality names is a great idea, though these firms will typically have some tenure. Finding value vs value traps can be tricky. Key is the word "temporary." Buying what you know can lead to domestic bias though the examples you gave were good. Wonder when buying what you know wouldn't have done so well? Restaurants maybe?
@@Nanalyze Restaurant business is tough. There's too much competition and it doesn't take many years to copy from another's success unless we're talking about McDonald's or Starbucks etc and then these are usually expensive stocks. One of the stocks I'm currently invested in is Neo Performance Materials. It is a boring business with a boring management (like Lynch said). It would take many years to complete a business like this and it's not very motivating to do so. They are currently building the first rare earth processing facility in the West. My thesis is 'heads, I don't lose, tails I win ' (like Pabrai said). In normal case, their profit should double at a minimum but even it stays as is, it should still return average levels plus it has a good dividend. Would be great to see your analysis if you find it interesting enough to dig. Nevertheless, thank you for the rich content, your channel definitely deserves more views and subscribers!
Agree. After assessing my goals - to have a better quality of life every year, to preserve capital, to sleep well at night - and after spending nearly a decade in academics and a decade in industry, I found dividend growth investing to the best strategy out there. Joe P.
I'm not sure that companies today could do what Altria or other companies did years ago. Between regulation and you need for constant growth and the lack of patience for shareholders, I'm not sure. Do you guys have any thoughts on this?
Quality companies don't have a lot of impatient shareholders clamoring for GAINZ as you see reflected on social media. Regulation and ambulance chasers are posing problems for some of America's greatest companies but they'll be able to navigate these hurdles. Consistency is what leads to these superior returns and there are some very boring companies out there that aren't talked about much which are able to consistently create shareholder value over time. Altria now is in a tough spot as they need to pivot away from cancer sticks (at least domestically) so we'll see how they manage that. Good comment, thank you! Joe P.
It is. The first step is always starting to increase the dividend over time with consistency. When a company does that for 25 years they get into the club. So maybe you can start to pay attention if they do it for more than five years meaning they're probably trying to go for that track record? You're basically asking how early they ought to be on the radar and it's a good question. Our new calculator looks at "upcoming champions" with a 20-year record. You could obviously lower that threshold but the more you lower it, the less impressive the feat. Very good discussion.
@@Nanalyze MO is well positioned to thrive in the marijuana industry it's just a matter of time before full legal legislation is passed and implemented in the US.
I would be rich if I had shorted all the stocks I owned for the first year of investing when I got obsessed with finding the next Nvidia in microcaps lol
Hah! Micro caps are just nasty stuff. Set yourself a market cap limit and stick with it. We don't invest in anything under $1 billion. Academic research shows you're not compensated for risk when you start going below small caps.
@Nanalyze I think it's a pretty common mistake but this was quite a few years ago. You find all these cool companies with genuinely neat and innovative ideas but the accounting is lousy, the information is hard to find, they don't have the same accountability as bigger companies, all sorts of problems, but on paper the ideas seem great if they could just execute. Then you realize there's good reason they rarely do. I have a set of rules I follow now which precludes me from investing in 99% of microcaps but I don't have a minimum market cap limit - other rules I have take care of this for me though so it's essentially the same thing
@@Dementia.Pugilistica Great to hear you solved the problem with a methodology change! Avoiding land mines is critical and there's more than one way to do it. You've learned what we've all had to learn through our investing journey. And you're helping other people do the same with your story. Great stuff.
Good point about foreign stocks not being included in the study. We'd need to do a proper total return analysis to know if East India Company beats the ones in this study.
@@henrymakepeace You can't. (en.wikipedia.org/wiki/East_India_Company) Be very wary of investing in names suggested by other people in cursory comments on social media sites ;)
@@henrymakepeace you have to go back in time in the year of 1600, if you are able to invest in them, by now you are not even need to comment in a TH-cam video.😉
Clicking this link will grant happiness and good fortune 👇
th-cam.com/users/nanalyze
That's why I like this channel. Heavy focus on fundamentals.
Thank you for the feedback! This was a very interesting report.
To me, trying to find multi decade 100 baggers when they're babies is just a waste of time. What works is 1:Buy quality stocks when they are temporarily in trouble and not liked by the market. You need to have cash in hand to be able to it. 2:Buy companies that you and your friends have recently become a customer of. Looking back, I could've bought Amazon, Apple, Costco, Netflix, Home Depot, Lululemon when we first paid money to them and liked the service we got and would have made tons of money. It doesn't even have to be a global company. I could have bought a Canadian company called Dollarama which has over 25% ROIC per year last 10 years.
Good comment. A man with a plan. Buying quality names is a great idea, though these firms will typically have some tenure. Finding value vs value traps can be tricky. Key is the word "temporary." Buying what you know can lead to domestic bias though the examples you gave were good. Wonder when buying what you know wouldn't have done so well? Restaurants maybe?
@@Nanalyze Restaurant business is tough. There's too much competition and it doesn't take many years to copy from another's success unless we're talking about McDonald's or Starbucks etc and then these are usually expensive stocks. One of the stocks I'm currently invested in is Neo Performance Materials. It is a boring business with a boring management (like Lynch said). It would take many years to complete a business like this and it's not very motivating to do so. They are currently building the first rare earth processing facility in the West. My thesis is 'heads, I don't lose, tails I win ' (like Pabrai said). In normal case, their profit should double at a minimum but even it stays as is, it should still return average levels plus it has a good dividend. Would be great to see your analysis if you find it interesting enough to dig. Nevertheless, thank you for the rich content, your channel definitely deserves more views and subscribers!
Please look at GCT and tell me your thoughts.
We're happy to research stocks on demand for paying subscribers. Please raise on our Discord server ;)
Quality always wins, started dividend growth investing in may and I haven't look back.
Agree. After assessing my goals - to have a better quality of life every year, to preserve capital, to sleep well at night - and after spending nearly a decade in academics and a decade in industry, I found dividend growth investing to the best strategy out there. Joe P.
Valuable research! 🎉
When the regulars pop in to let us know our research is valuable that warms the cockles of my hear ;) Thank you for the feedback! Joe P.
I'm not sure that companies today could do what Altria or other companies did years ago. Between regulation and you need for constant growth and the lack of patience for shareholders, I'm not sure. Do you guys have any thoughts on this?
Quality companies don't have a lot of impatient shareholders clamoring for GAINZ as you see reflected on social media. Regulation and ambulance chasers are posing problems for some of America's greatest companies but they'll be able to navigate these hurdles. Consistency is what leads to these superior returns and there are some very boring companies out there that aren't talked about much which are able to consistently create shareholder value over time. Altria now is in a tough spot as they need to pivot away from cancer sticks (at least domestically) so we'll see how they manage that. Good comment, thank you! Joe P.
@@Nanalyze Perhaps a company like BN or BAM or someone like this can be a future Dividend Aristocrat, etc., but it is really tough to forecast that
It is. The first step is always starting to increase the dividend over time with consistency. When a company does that for 25 years they get into the club. So maybe you can start to pay attention if they do it for more than five years meaning they're probably trying to go for that track record? You're basically asking how early they ought to be on the radar and it's a good question. Our new calculator looks at "upcoming champions" with a 20-year record. You could obviously lower that threshold but the more you lower it, the less impressive the feat. Very good discussion.
@@Nanalyze MO is well positioned to thrive in the marijuana industry it's just a matter of time before full legal legislation is passed and implemented in the US.
I would be rich if I had shorted all the stocks I owned for the first year of investing when I got obsessed with finding the next Nvidia in microcaps lol
Hah! Micro caps are just nasty stuff. Set yourself a market cap limit and stick with it. We don't invest in anything under $1 billion. Academic research shows you're not compensated for risk when you start going below small caps.
@Nanalyze I think it's a pretty common mistake but this was quite a few years ago. You find all these cool companies with genuinely neat and innovative ideas but the accounting is lousy, the information is hard to find, they don't have the same accountability as bigger companies, all sorts of problems, but on paper the ideas seem great if they could just execute. Then you realize there's good reason they rarely do. I have a set of rules I follow now which precludes me from investing in 99% of microcaps but I don't have a minimum market cap limit - other rules I have take care of this for me though so it's essentially the same thing
@@Dementia.Pugilistica Great to hear you solved the problem with a methodology change! Avoiding land mines is critical and there's more than one way to do it. You've learned what we've all had to learn through our investing journey. And you're helping other people do the same with your story. Great stuff.
@@Nanalyze appreciate you
in swden you cant buy fractional shares as far as i know.
Others have mentioned this too! Apparently this isn't a common thing at ex-USA brokerages.
All nothing compared to the East India Company, crazy dividend for decades
Good point about foreign stocks not being included in the study. We'd need to do a proper total return analysis to know if East India Company beats the ones in this study.
How can I invest in them?
@@henrymakepeace You can't. (en.wikipedia.org/wiki/East_India_Company) Be very wary of investing in names suggested by other people in cursory comments on social media sites ;)
@@henrymakepeace you have to go back in time in the year of 1600, if you are able to invest in them, by now you are not even need to comment in a TH-cam video.😉
@@Nanalyze its a nice benchmark for a company. Basically what a company can achieve without ethical, legal and societal impact boundaries 🫠
I want to trust $DNA - but but …
Not really on topic but our last piece on DNA is here if you're interested: th-cam.com/video/7-cb8SO-d6c/w-d-xo.html