I Just Bought 3 Stocks!
Summary
Sven outlines a conservative investment philosophy centered on Warren Buffett's rules of not losing money, contrasting this with high-risk sectors like SpaceX or data centers. Sven notes that his model portfolio has historically achieved 15% annual returns by researching smaller businesses with market caps below a few billion dollars, where he believes better value can be found than in the large-cap stocks discussed on mainstream media.
Sven highlights three recent acquisitions for his portfolio:
Mentioned Stocks
Reasoning: Sven bought this stock because the sum-of-the-parts valuation suggests it is worth double its current price. Sven notes that he is paying 10 for a value of 20, and the company is very safe because 40% of its market cap is held in cash, with catalysts like spin-offs and liquidations expected to unlock value.
Reasoning: Sven bought this stock for its stability and defensive nature, citing 8% historical earnings growth. Sven highlights that the stock trades at a P/E ratio of 10 with a 6% dividend yield, which should lead to a 14% annual return. Sven also mentions the possibility of the company being acquired by a private equity firm.
Reasoning: Sven bought this position because it offers a 20% return on equity and trades at a price-to-book ratio of 1.2. Since the book value is almost entirely cash, Sven expects the investment to deliver returns in the high double digits.