Edwards Lifesci

As already announced in one of my last posts, here is the follow-up purchase of $11B (+0,72 %)

We have now reached a relatively good bottom. Should we fall again towards €55, I would consider buying more. In addition to my own analysis (see my profile), the decisive factor for the purchase at this point in time was that 2 insiders have now struck in the sell-off. The two supervisory board members Piotr Wierzbicki and Marcin Kuciapski have generously dipped into their own pockets. Marcin in particular has been buying steadily over the last few years and has now made his biggest purchase to date.

However, I assume that the recovery could continue until the middle of next year. Then I will have to judge whether my assessments were correct.

Further additional purchases in the current market environment include:

$MSFT (+0,08 %)

$EW (+1,88 %)

$OKTA (+3,79 %)

$JEN (+0 %)

$V (+1,31 %)

$VRTX (+0,47 %)

A voice against McDonald's $MCD (-0,18 %)
(+ my alternatives for you)

I wanted to give a brief assessment of the fast food giant and also present some alternatives. I'm surprised that many private investors have been investing so heavily in the golden M recently. In other words, I'm not really surprised. The share has fallen over the year and when a share falls, it becomes cheaper. Isn't that right?

Well, I don't actually think that McD is cheap enough to see a clear buying opportunity here. The price may be quite fair, but I wouldn't recognize an undervaluation. But first of all, one thing that I think is good: I actually think McD is very good if you want to invest in real estate. At this point I say "Ok, before you go into some weird REIT then take McD all right"

Otherwise, however, I'm too skeptical when it comes to restaurants to get in at a P/E ratio of over 20. I'm not alone in this at the moment and that's exactly why the share price has fallen. The point is simply that gastronomy is cyclical. And, as I never tire of emphasizing, consumers now have increasingly empty pockets, which is considerably dampening their mood and ability to spend. In this respect, many gastronomy stocks such as $MCD (-0,18 %) and especially $SBUX (+2,42 %) possibly go even further downhill. Those who are keen to get in could therefore wait.

So as not to make this too long, I won't explain again why I have a few doubts about the future growth of Mecces in particular, even without the current sector effect. If you are interested, I will be happy to come back to this elsewhere. Instead, here are 3 alternatives that I currently consider to be better (not investment advice):

1) Coca Cola $KO (+1,89 %) - I hope I don't have to explain where I get the connection from. But I actually think it's better at the moment. Of course there is a lot of gastro in the share, but it is not quite as vulnerable. You also get roughly the same amount of dividend for your money and essentially just an even more robust share. When I look at them side by side, they both look very similar, but I can't think of any reasons not to bet on CC, given McDonalds' current not-so-cheap price.

2) Rational AG $RAA (+1,85 %) - is actually the ETF for system catering because it manufactures the appliances for such kitchens. As a result, it is also well diversified and has stronger growth. But it is also valued a little higher. I was also invested there for a long time, but it has exactly the same problem as the restaurant industry itself - it is also quite cyclical.

3) Edwards Lifesciences $EW (+1,88 %) - Well, you didn't expect that, did you? But the Edwards share is now hardly valued higher than the McDonalds share and offers a great way to profit from the restaurant to the golden M if you think outside the box. I think the medical technology manufacturer specializing in cardiology is virtually predestined to supply MC customers as patients. So instead of investing in what makes people ill, you could also invest in what makes people well again. Unfortunately, there is no dividend for this.

I had to take this opportunity!

Has anyone looked into $EW (+1,88 %) why they have slumped so much ? Could it slowly become interesting again ?

Make a little provision for old age🙌 $EW (+1,88 %)

Buy order triggered with jump above the resistances of the last months and at the same time also above the 200SMA. Top company with a quasi-monopoly position which has come under pressure in recent years (price-wise - despite great figures) and is therefore currently relatively cheap to buy.

Dear community,

after I have often thought about whether I would like to present my portfolio or not, I'll give myself a jolt with the new function and introduce myself briefly:

Who am I?

27 years old, AT. I have been working in development in the semiconductor industry for 3 years, before that I studied at university with holiday jobs and a small part-time job of 8 hours a week. I live with my girlfriend, am addicted to sports and have been addicted to investing for 1 year.

Career portfolio

Due to the (extensive) acquaintance with the co-founder of $MIOTA (+2,64 %) I entered the crypto world in 2018 and invested almost €500 (a lot of money as a student at the time) in Iota and other cryptocurrencies. After everything collapsed there (I had -95% in the meantime), I didn't want to know anything more about investing and concentrated on my studies and my life.

With my master's degree and the start of my permanent employment in 2021, the question then arose as to what I would do with my money and I finally ended up investing via various ideas (Amazon dropshipping, startup, etc.). After about 1 month of reading in, my first position was the $LCUW (+0,99 %) which I bought at $ASML (+3,19 %)
$IFX (+0,2 %)
$LIN (+1,73 %) and $XMME (+0,15 %) expanded it. Over time, more shares were added and by registering on Getquin, the MSCI Word + EM was then shifted to the $VWRL (+0,87 %) (thanks to the community :)). Since then, most of the income (savings rate currently 2k/month ~50%) has been invested, $VWRL (+0,87 %) and $SPYD (+1,39 %) by savings plan + dip purchases, shares always by individual purchases.

Structure

As I come from the technology sector and see where technology is used everywhere, I deliberately have an abundance of technology in my portfolio. Basically, I'm focusing on growth (I'm still young) and core-satellite, with the aim of being able to live well from dividends and withdrawals in my later years and to give my children a good start in life. In addition to the Flatex custody account, there are also a few gambles in the crypto sector, but nothing major. Maybe in 10 years it will help with the house and Lambo

What would I like to change?

Through the community I came across the $SPYD (+1,39 %) came to my attention. The good dividends and the good price performance in the past (> $VWRL (+0,87 %) ) persuaded me to invest in the ETF as well. In recent weeks, however, I have become increasingly dissatisfied with the ETF's performance, partly because the companies it contains don't quite match my objectives. I will now (after feedback from the community) build up the $EQQQ (+0,88 %) as a satellite ETF via a savings plan. The $SPYD (+1,39 %) currently remains in place as I expect a tech correction in the near future where the $SPYD (+1,39 %) should serve as a support. Whether I keep the Aristocrat or not is still up in the air (outcome of the post was 60% Nasdaq100, 22% SPYD and 18% both), I would be happy to receive feedback here. Also on the watchlist at the moment are $EW (+1,88 %) and $CRWD (+2,94 %) which, however, is a competitor to $FTNT (+2,82 %) is. However, as I consider the sector to be very important for the future, I will get both on board.

Favorite stocks

$ASML (+3,19 %) (The technology is extremely interesting)

$CDNS (+1,9 %) (The program is complete garbage but quasi monopoly with $SNPS (+2,77 %) )

Hate shares

$SRT3 (-0,27 %) (Let's see if this is still something, was a purchase on online Google suggestions)

$NRJ (+1,11 %) (I'll hold on to it, maybe it will be something in a few years)

$MIOTA (+2,64 %) (Well, the share price says it all :D)

I would be happy to receive feedback and suggestions for improvement, please let me know any criticisms/suggestions, that's the only way to keep learning;)

In this sense, enjoy the day and have a nice New Year's Day

Send via Internet-Explorer

Currently on my watchlist are:

$BMY (+0,83 %)

$EW (+1,88 %)

$CLVLY

$MC (-1,36 %)

$NKE (+3,29 %)

Which would be the most interesting for you or do you already own?

I currently have around €400 that I would like to invest in one or more of the shares.

A boring share for the ages that hardly anyone has on their radar. Almost a monopoly and the future can only get better given the demographics. Only acquisitions and share buybacks, so nothing for dividend hunters.

Investment philosophy, "diversification" and dividends

Hi all, as this is my first slightly larger post I would generally appreciate some constructive feedback.

First something About Me

I'll be 22 in a month and I've been active in the stock market for about 2 years now. After a lot of back and forth, I can almost say that I have tried every strategy - but I never really felt comfortable. One learns from mistakes, and I have made many of them.

But what I have also done is to spend countless hours, days and weeks with books, videos, shareholder letters and internet research. I was particularly fascinated by the investment approaches of Terry Smith and the way of Joseph Carlson on Youtube.

My goal quickly became clear, I don't want to have thousands of companies in my portfolio that I don't know, understand or fully support. So an ETF focus was off the table.

Thereupon I built my own investment philosophy, which I would like to present to you in the following.

If you want to know more about me and my goals, there might be another article with a portfolio presentation soon :-)

First I would like to explain to you why I do not believe in diversification hold:

A quote from Warren Buffet is well known: "Diversification is protection against ignorance. It makes little sense if you know what you are doing."

However, a quote from one of the world's best investors alone is unlikely to convince everyone. Studies also support Buffet's view. The advantages of diversification decrease very fast and the gap between market risk and total portfolio becomes minimal from a portfolio size of 20-25 companies - 25 companies give you all the advantages of diversification, more positions only worsen your performance and overview. (Figure 1)

Because concentration delivers better performance. Fund managers who concentrate their knowledge in a few companies deliver better results than more diversified managers. (Figure 2)

Investment philosophy

I want to outperform the market, so I look for the best companies. What makes good companies?

Companies with competitive advantages (moats) outperform the market (Figure 3), and they do so because they have high returns on capital. My first metric for evaluating quality of a company and with a high value in my company analysis is ROIC (Return on Capital Invested). I look for companies with at least 10% ROIC. (Figure 4) Furthermore I want high ROCE (Return on capital employed) and high ROA (Return on Assets) figures.

This directly eliminates some companies and also whole sectors, namely exactly those in which it is not worth to invest anyway. Why is this so?

There are sectors that historically outperform the market (Software, Consumer, Healthcare) - on which my focus is -, and sectors that consistently underperform and are not considered in my investment approach (Banking, Energy, Insurance, Mining, Utilities, Airlines) - just compare the sectors with the main index ;-)

Consumer goods, healthcare and software companies perform better because they generate sustained profits, so they remain profitable even during economic downturns. This allows for consistently high returns on capital.

Next, a look at the margin here I would like to see high Gross Margins >60%, which are also a good indicator of a competitive advantage, and a high Profit Margin, which is an indicator of the efficiency of a company's value creation. However, the most important margin for assessing profitability is the FCF margin.

A company's focus should be maximally on Free Cash Flow, we should invest in companies that are as profitable as possible. In the long run, the share price follows the Fcf/Share.

Beyond that I don't want any debt, any company with Debt/EBITDA > 3 flies right out, preferably anything less than 2.

In terms of growth, I look for stable and good EPS and revenue growth, but FCF growth has the highest priority.

The higher the better, the more important the key performance indicators are.

My minimum benchmarks for the most important metrics:

• ROIC > 15%, ROCE > 15-0%
• Gross Margin > 60%
• Profit Margin > 20%
• FCF Margin > 20%
• Debt / EBITDA < 3, preferably < 1
• FCF 5Y CAGR > 10-15%

(Not all of my companies always meet every metric, but I have built my own score where a minimum score must be met and by score I set the "Conviction" to a company).

Buy & Hold and long-term investing outperforms

As long as a company continues to reinvest its capital at high returns there is no reason to sell. (Figure 5)

What about dividends?

Some of my companies pay a dividend, others don't - I don't put much emphasis on dividends, and will definitely not put bad companies in my portfolio just to get a payout in a given month ;) Dividends should be minimized if capital can be reinvested at high rates of return. At my young age and with a long term investment horizon the focus should be on yield, in old age I will also shift to dividends ;)

The most important thing to conclude: Invest in profitable companies that you UNDERSTAND

A few final tips:

• Don't chase trends, they fade away
• Do not be blinded by dividends
• Don't care about macroeconomics, invest in companies - not cycles
• Market timing is impossible
• Look for established companies, not one-hit wonders
• BUY GOOD COMPANIES - DON'T OVERPAY - DO NOTHING (Terry Smith)

My current investable universe:

$ADBE (+1,65 %)
$NVO (-2,14 %)
$CUV (+0,21 %)
$CDNS (+1,9 %)
$ASML (+3,19 %)
$VRTX (+0,47 %)
$V (+1,31 %)
$MA (+1,13 %)
$MSFT (+0,08 %)
$QLYS (+2,87 %)
$MKTX (-1,19 %)
$KLAC (+3,32 %)
$GOOGL (-5,23 %)
$REG1V (+2,13 %)
$TNE (+2,22 %)
$ENX (+0,57 %)
$EW (+1,88 %)
$VRSN (+2,62 %)
$FICO (+1,87 %)
$FTNT (+2,82 %)
$NEM (-1,17 %)
$MONC (-1,67 %)
$CSU (+3,77 %)
$6861 (+3,39 %)
$ENGH (+1,27 %)
$MC (-1,36 %)
$AAPL (+0,52 %)
$6857 (-0,83 %)
$7741 (-0,78 %)
$PAYX (+1,33 %)
$MTD (+3,25 %)
$TXN (+0,59 %)
$OR (+1,38 %)
$ZTS (+1,14 %) (Companies I watch, in my portfolio I have only 8 of them).

That's it from me for now. Please leave me some feedback and share the post if you like it :-)

What would you like to hear from me next? More about free cash flow? Portfolio presentation? Company presentation? My slightly different valuation approach, far away from P/E?

Some of the illustrations are from a slightly smaller fund ("Long Equity Investing" on Twitter - can only recommend you) or from Terry Smith's Shareholder Letter.

No investment advice