The only list you need: The top 25 companies I look out for in the correction process

Nico Uhlig@RealMichaelScott

@RealMichaelScott The list includes companies with above-average corporate quality and solid sales growth at the same time - the prerequisite for long-term compounders. No Nestle's or biotechs of this world that fulfill only one of these components. No dividend-focused companies either, as the focus is on growth. Agree with you: the companies on the list can be assigned to a spectrum. Names like Roblox or Robinhood definitely belong to the weaker end because they still have to prove that they are sustainable compounders. With Roblox specifically, I dislike a few things, e.g. the high SBC, insider selling, etc. You can see them as a bolder choice in a concentrated portfolio, but they are my first picks. I have deliberately not replaced them with Visa or Meta, for example. I disagree with you about Palantir. They fulfill both criteria, but are not worth buying above €40-50.

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In principle, I don't criticize the selection, because it's always subjective and there are always companies that you personally don't like.

In the case of Palantir, for example, I also see SBC as a huge problem. There is an incredible amount of dilution at the expense of the shareholders.

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batic420@batic420

Great list! 😎
I will definitely have a look at one or two companies. However, I think $TSLA and $PLTR, for example, are less suitable for this.

But as you already mentioned - 8-10 are enough to have a solid portfolio, so you can simply do without both stocks here 😄

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@batic420 In my opinion, Palantir will only become interesting again from €50, Tesla is already fairly valued in my opinion. But there are enough other good risk/reward opportunities on the list.

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N@Khlmysee

Why Tesla? Honestly, I don't believe in their story. The big hype is over.

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@Khlmysee In my view, the risk/reward ratio for Tesla has become attractive again. Based on my DCF model, I think it is currently fairly valued. If you don't have the confidence in the story, then it's legitimate to look around for other investments. There are plenty of other top companies on the list.

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Pandamona@Pandamona

Not long, but it can be very worthwhile for trades.

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@Pandamona That anyway. But I have learned that only long-term investments in top companies work for me in a predictable way.

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CashBurner@Lumimyrsky

Never underestimate the Elon fanboys. Even if Tesla were to file for bankruptcy, they would still buy

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@Lumimyrsky Helpful commentary, keep it up

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Andreas M.@thor88

@Khlmysee I agree with you...People can buy chinese cars these days which are much cheaper and better equiped while they are improving their service capabilities across the globe.

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@thor88 I agree, but Tesla is not about selling cars. It is one component of their changing business model.

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N@Khlmysee

@thewolfofallstreetz, in any other part there are better competitors.

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Andreas M.@thor88

@thewolfofallstreetz Corect but if you don't sell it's useless...

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Visualizza tutti 11 ulteriori risposte

@Khlmysee With similar economies of scale, pace of innovation, R&D efficiency and 36b USD in the bank?

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T.@small

$INTU and $PLTR I have already bought more 👍🏼 but I still prefer $NOVO B to $HIMS, for example
I also think $SAP has sunk unjustly, it is slowly returning to a fair valuation, what do you say?

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@small Interesting. At Palantir at these prices? I can understand you with Hims & Hers. Novo is the variant with less risk, but I already have enough of this profile on my list. SAP's growth in sales and cash flow is too slow for me, so it's not in my sweet spot between above-average company quality and solid sales growth in a growth market.

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Soprano@Soprano

Use it to buy Microsoft, a bit of Shopify and a lot of Trade Desk. Although with the latter I get the feeling that it will ruin me one day 🥴

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@Soprano At Trade Desk it's time for the CEO to buy shares and put a stop in ;-) RSI is now at 16 and getting more interesting every day, especially when I look at the fundamentals.

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Kristian D.@KDH-Invest

Add $SPGI to the list

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ChillmaldeineNuggets@ChillmaldeineNuggets

@KDH-Invest I prefer Moody‘s , but I get your point

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Strong selection. I have nine of the shares in my portfolio myself.

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@ChillmaldeineNuggets Then you have done everything right and should outperform the index. It just depends on the weighting of your positions and the entry price ;- )

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D.S.@Cato_Bamboo

@thewolfofallstreetz These are really two difficult restrictions 😳

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@Cato_Bamboo haha, indeed. But that's why we're currently in an ever better phase ;- )

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D.S.@Cato_Bamboo

Unfortunately 24x red tonight 🚦

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@Cato_Bamboo So much the better. I have trained myself to only buy on red days. In the long term, nobody cares about today.

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D.S.@Cato_Bamboo

@thewolfofallstreetz Then you have a perfect day today 😉

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Today $SESG was completely liquidated with a return of almost 100% and invested in $TTD $KKR and $MC:)

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@Michey777 At least there's one on the list ;-) The CEO of Trade Desk should start buying shares in his company and not just selling them. RSI now at 16.

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@thewolfofallstreetz There is nothing more to add. Can't buy the whole list :) but it's amazing how some stocks have come back. The Nasdaq is only down 11% this year.

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@thewolfofallstreetz $HOOD was an alternative but then became $KKR. Always wanted to go there, but never came back...

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@Michey777 The divergence is quite striking. On my watch list, 65% of the companies have fallen by >25% from their last 52-week high, while the indices have fallen by just 10-12%. We are simply being presented with beautiful bargains again.

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@thewolfofallstreetz I agree with you. Just look at $HOOD alone. They actually presented phenomenal figures (in February) and have fallen almost 50% since then.... Of course, you also have to factor in another run after the Trump election... It wasn't a fundamental development. But $BRK.B will be pleased, I think someone will go on a shopping spree this year.

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@Michey777 You have to see it in context. Many shares previously ran extremely high, sometimes detached from their fundamental development. The current phase is called "risk-off". This is why these stocks are correcting first and also much more sharply. As always, it goes both ways.

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Where is China in the list?

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@7Trader China is and remains uninvestable for me

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CashBurner@Lumimyrsky

@7Trader no money for communist dictatorships. Even if we probably still have some catching up to do

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@Lumimyrsky aso, well too bad. I even have money for it.... 😅

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@thewolfofallstreetz ok, you will have your reasons.
And why did you include Nvidia yesterday and not on this larger list today?

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@7Trader Yesterday was about companies that I think are trading at or below their fair value, regardless of whether I would buy them myself. As things stand today, I would not buy Nvidia as an individual share, as this is too risky for me personally, at most indirectly via ETFs. The list of 25 companies today are those that I consider to have the best business models and also show good growth. A few of them are also riskier, e.g. Roblox.

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