Research from Value Investing, Value Investing

Value Investing

Research from Value Investing

I am a value investor. "Value", as defined in Value Investing, is simply the act of buying something for less than its worth. I treat my equity investment as a loan to the business - where the priority is to get back my principal in full, rather than achieving maximum yield. I consider my equity investment as a slightly higher risk loan extended to the business with slightly more accommodative loan covenants - hence justifying a slightly higher yield. While I identify as a value investor and cover all stocks and macro topics indiscriminately, most of my research will have an ASEAN bent as that’s where I’m geographically located.

Thematic (Sector/Industry)

<ul><li>Much ado has been made about Nvidia’s valuation recently surpassing Apple’s, standing at a gobsmacking $3 trillion.</li><li>For context, it would take you nearly 100,000 years to count to 1 trillion.</li><li>But where there’s sky there’s limit, and NVDA is no exception. So the question begs: has NVDA’s valuation flown too close to the sun?</li></ul>

Much ado has been made about Nvidia’s valuation recently surpassing Apple’s, standing at a gobsmacking $3 trillion.For context, it would take you nearly 100,000 years to count to 1 trillion.But where there’s sky there’s limit, and NVDA is no exception. So the question begs: has NVDA’s valuation flown too close to the sun?

Equity Bottom-Up

Tesla Inc. operates as a multinational automotive and clean energy company. The Company designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla owns its sales and service network and sells electric power train components to other automobile manufacturers.

<ul><li>Takeaways: Biden plans to quadruple US/EU tariffs on Chinese EV imports.</li><li>This will further defend TSLA’s domestic beachhead: 1) 50% EV market share in the USA (No. 2: Ford 7% ) + 2) huge headstart over domestic auto incumbents in assembly line processes (Gigapress) &amp; high manufacturing concentration .</li><li>Together, this should result in superior economies of scale which translates into lower unit costs — increasingly important in a commoditizing US EV sector.</li></ul>

Takeaways: Biden plans to quadruple US/EU tariffs on Chinese EV imports.This will further defend TSLA’s domestic beachhead: 1) 50% EV market share in the USA (No. 2: Ford 7% ) + 2) huge headstart over domestic auto incumbents in assembly line processes (Gigapress) &amp; high manufacturing concentration .Together, this should result in superior economies of scale which translates into lower unit costs — increasingly important in a commoditizing US EV sector.

The Walt Disney Company is an entertainment company that conducts operations in media networks, studio entertainment, theme parks and resorts, consumer products, and interactive media. The Company produces motion pictures, television programs, and musical recordings, as well as books and magazines.

<ul><li>Imagine a racetrack with 10 horses. The first two horses (NFLX and DIS) are peeling away from everyone else; with NFLX still having a sizeable lead over DIS.</li><li>But the stage is set for DIS to start accelerating faster than NFLX.</li><li>This is how I would describe the US Media sector today, and Disney’s Q1 results released yesterday only serves to bolster that narrative.</li></ul>

Imagine a racetrack with 10 horses. The first two horses (NFLX and DIS) are peeling away from everyone else; with NFLX still having a sizeable lead over DIS.But the stage is set for DIS to start accelerating faster than NFLX.This is how I would describe the US Media sector today, and Disney’s Q1 results released yesterday only serves to bolster that narrative.

Disney Q1 Earnings: Finally Ready to Take Share from Netflix

<ul><li>The red &amp; blue arrows highlight the apples-to-apples comparisons to be made between the respective bars (more details below)</li><li>Around this time last year , I did a portfolio performance review based on all the stocks I had written about in 2022.</li><li>This article is a repeat of that for all the stocks I had written about in 2023.</li></ul>

The red &amp; blue arrows highlight the apples-to-apples comparisons to be made between the respective bars (more details below)Around this time last year , I did a portfolio performance review based on all the stocks I had written about in 2022.This article is a repeat of that for all the stocks I had written about in 2023.

Value Investing Substack Portfolio Review | Annual Letter 2023

Sea Limited offers information technology services. The Company provides online personal computer and mobile digital content, e-commerce, and payment platforms. Sea serves customers worldwide.

<ul>
<li>Forrest Li: "Look How They Massacred My Boy" When CEO Forrest Li announced SEA Ltd’s Q2 results in mid-August, he was probably expecting a pat on the back.</li>
<li>After all, the team at SEA Ltd had slogged through fire and brimstone over the past year trying to bring the company back to profitability.</li>
<li> And to their credit, they had actually successfully done so against all odds, as evidenced by the opening statement of their 23Q2 results.</li>
</ul>


Forrest Li: "Look How They Massacred My Boy" When CEO Forrest Li announced SEA Ltd’s Q2 results in mid-August, he was probably expecting a pat on the back.
After all, the team at SEA Ltd had slogged through fire and brimstone over the past year trying to bring the company back to profitability.
 And to their credit, they had actually successfully done so against all odds, as evidenced by the opening statement of their 23Q2 results.
