Ongoing conviction meets new curiosity
At the end of this week, I made two small but meaningful moves: one a doubling down, the other a new addition. Both fit different purposes in my portfolio but share one thing: strong fundamentals and misunderstood sentiment.
Starting with Novo Nordisk, a name I’ve talked about plenty over the last few weeks. I added a bit more to my position, taking advantage of what I think is one of the most ridiculous valuation disconnects in large-cap healthcare right now. The stock trades at a forward P/E of around 13, cheaper than Pepsi or FedEx (both mature, low-growth businesses). Meanwhile, Novo operates in the middle of a global obesity revolution, in a duopoly with Eli Lilly, with 55% gross margins, no major patent expirations before 2032, and a pipeline full of high-probability blockbusters like Cagrisema and Amycretin. Oral Wegovy’s FDA decision in Q4 could easily be another catalyst.
And yet, the market keeps finding reasons to hate it. The latest being the Metsera deal, where the stock is down without having done anything. For me, there are two likely scenarios: either Novo gets criticized for overpaying if they win, or for “missing out” if they don’t. It’s a lose-lose in the headlines, but long term, it’s exactly the kind of strategic optionality that keeps their dominance intact. It’s hard to find a setup this good at a P/E in the mid-teens. I’m not betting on Novo overshadowing Eli Lilly — after all, I hold both companies — just seizing the opportunity while others declare the end of the company.
The other stock I want to talk about is SharkNinja, my new buy. A completely different beast that is consumer-focused, innovative, and fast-growing. The moat here is execution and relentless product innovation. Revenue is growing north of 15%, net income in the mid-double digits, and debt is minimal. Forward P/E sits around 18 for FY25, falling to about 14 by FY27, while free cash flow yield approaches 5%. Growth is intact, the valuation more than fair, and management seems to understand its market extremely well. Execution and innovation are key for this company, and so far, they have proven they can deliver.
No, SharkNinja isn’t an S&P Global-like compounding fortress. It’s a satellite position — a smaller, higher-risk, higher-reward play. But it fits neatly alongside my larger, steadier core.
One unloved compounder and one nimble grower — two different lanes, both moving in the right direction.
