Tag Archives: Cash flow

Posted on by

Investing in oligopolies isn’t always a winning strategy

Everyone knows that market concentration leads to less competition and in turn to more powerful entities within this group. Such oligopolies by definition should allow the respective companies to achieving strong results and high margins due to pricing power, but also where applicable economies of scale. In reality, however, not every sector or company offers automatically a good stock investment, even when factually operating in an oligopoly.

Continue reading →
Posted on by

Burberry – closed at a loss + what to take home

As is with investing, from time to time, there will be losing positions in a portfolio in company to big winners. This is what happened among my ideas for my Premium PLUS members. Last week, I threw out Burberry after I lost patience due to deteriorating fundamentals. Today, I am looking back at how I formed my thesis, what happened in the meantime and I explain why I finally pulled the brake as well as why this decision was necessary.

Continue reading →
Posted on by

What most investors get wrong about gold stocks + new research report

There are three things the majority of investors fail to understand with regards to gold stocks. The first is gold is NOT THE hedge against inflation and thus gold stocks not even better hedges. The second is with higher gold prices, NOT ALL gold stocks go up exponentially. The third is the evergreen that all gold stocks are heavily undervalued by the stupid market and great buying opportunities. I am going to take these beliefs apart. My Premium PLUS members receive on top my best gold stock idea after I have already had a golden hand with my silver pick (for all my members). If you read until the end, I have a small gift for you.

Continue reading →
Posted on by

Namibia – the new and better Guyana? + new research report

Although ever since the predictions and paroles have been that the world is running out of oil soon, from time to time big new discoveries have been made. Brazil has vast known reserves that could last for 50 years. Offshore the coast of neighboring Guyana, a reservoir of an estimated double digit billion barrels of oil equivalent is being already extracted. There’s a good chance, Namibia, a country in Southwest-Africa, could become the “next Guyana” – maybe even a better one!

Continue reading →
Posted on by

The untold risks of average returns

This headline might sound confusing at first sight, but behind it is a topic worth thinking about. As one understands what’s behind “average returns”, a portfolio check-up could be appropriate, especially if one is overweight in stocks with past above average performances paired with high valuations. A few thoughts on risk-adjusted investing.

Continue reading →
Posted on by

Uncle Sam as tenant? Two stocks with government exposure – Part II

While it is not directly investing in the government per se as you won’t have any direct ownership in it (luckily), I’ve found two stocks that are operating in the name of it. I am not talking about defense companies where governments are the sole customers (individuals don’t buy tanks). There are two high-yielding REITs with several government agencies as their tenants. Are they worth a look? Part two.

Continue reading →
Posted on by

BlackRock: ESG harmful for business – hated stocks poised to come back?

One of the big investment topics of this decade could be the return of those neglected and hated sectors that did not fit into boldly advertised ESG policies. Dirty, careless, only return focussed, etc. Yet, that’s not the same as not needed or replaceable, not to mention affordability. On the other hand, you have greenwashing, higher costs of living and ousting of non-liberal, more conservative customers with silly messages and acts. BlackRock is writing it and the market is speaking. Listen.

Continue reading →
Posted on by

Why I don’t like diversification

Buying either parts of or even entire other companies is a common way for businesses to grow. This inorganic route though is often used for empire building (higher salaries and bonuses), sometimes even to hide own problems inside the core business (presenting an external growth story) and more often than not destroying shareholder value by overpaying for the targets. Today, I’m discussing a company that is losing through diversification.

Continue reading →
Posted on by

My outlook for 2024 – risks and opportunities

The old year closed with a look back (and an interview), the new year starts with an outlook. While it is not my job to try to predict the future per se, I have to make some thoughts and position myself accordingly, which influences my stock ideas – new ones, but also how to handle the published and active ones. This is what I want to discuss – risks, but of course also chances for stock pickers!

Continue reading →
Posted on by

“Fallen Angels” – why you should be cautious + new research report

No matter whether experienced or not, almost every investor is on the hunt for undervalued stocks to make money. What could be less welcome than a stock which has fallen in price and become cheaper? The problem is, “cheap” is not automatically “cheap”. In fact, buying cheap can become a costly mistake. I see a strict urgency to clean up with this dangerous myth that a stock only has to fall enough to become attractive.

Continue reading →