7Mês·

New share in the portfolio - Xylem

After a long time, I have a new addition to the depot. This is about $XYL (-0,23%) . The company has existed since 2011 and emerged from a spin-off of the Group. $ITT (+0,23%) group.

In short, Xylem's business model is the manufacture of water treatment systems and water analysis equipment. A nice defensive business model at a reasonably fair price. You can't expect to see price fireworks here, but water is unlikely to become redundant (joke intended) or disrupted in the foreseeable future.

Defensive stocks are in demand at the moment and Xylem's valuation is still reasonable. I have been following the stock for many years, but in the end I have always decided against Xylem and in favor of software stocks. As there is so much uncertainty in the software sector at the moment, I have now taken the opportunity to invest in Xylem. Apart from the first tranche, I am accumulating around €200-250 per month in the stock via a savings plan.

Nevertheless, I remain invested in software and have also increased my $GOOGL (+1,31%) / $GOOG (+1,15%) position further. This stock isn't cheap either, but I reckon you CAN still buy it in the €250-260 range without burning yourself out. Maybe even higher, but I can't say. If I already had a relevant position here, I probably wouldn't add to it at the current price. But since Alphabet really has a good technology again for the first time in years, I think it would be reckless not to be invested at all.

Since he is certainly interested @topicswithhead I hereby draw his attention to the post. (He was right about Alphabet and ASML right from the start)

03.03

Xylm

Comprado x3 em € 107,03

€ 321,10

14 Comentários

Tenbagger-Capital@Tenbagger-Capital

7Mês

Thank you my dear, for the update

•

Soprano@Soprano

7Mês

@Tenbagger2024 Always welcome. Unfortunately, I don't often have something completely new, the last new additions were over a year ago, EXL and NOVO 😁

•

Tenbagger-Capital@Tenbagger-Capital

7Mês

Medpace has also done well again. I sold them in the dip at the time. Do you think Medpace is at risk from AI?

••

Soprano@Soprano

7Mês

@Tenbagger2024 To be honest, not at all. AI can't simply carry out the clinical trials for drug approval. Firstly, AI hallucinates too much and secondly, that's another regulatory moat. Who is liable for the results of AI? I would rather assume that Medpace will accelerate its own processes even further with AI and thus achieve particularly fast results for customers

••

Tenbagger-Capital@Tenbagger-Capital

7Mês

@Soprano I see it in a similar way, but somehow I also have the thought. That companies that have outsourced this research to Medpace could perhaps carry it out themselves in the future. Because AI makes it easy for them too, and they want to save themselves the service provider

••

Soprano@Soprano

7Mês

@Tenbagger2024 I've already thought about that. You just have to ask yourself the following question: Why did companies use Medpace in the first place instead of doing the research themselves?

Every pharmaceutical company has the know-how and the competent people to carry out the research themselves. But what they clearly don't have is the entire infrastructure. You don't just need someone to put it all together, you need laboratories, equipment, test animals and people, cooperation partners, contacts with the relevant authorities, etc. Medpace has all of this. Medpace's moat was never that the companies didn't have the know-how, but that they didn't have the infrastructure and it is also too expensive for individual companies to set it up if it is only used sporadically. And the public laboratories etc. are so busy that there are waiting times.

••

Tenbagger-Capital@Tenbagger-Capital

7Mês

@Soprano As a loan, it's really difficult for me. The story at Medpace is probably that the CEO of Medpace is a former director of the admissions office. And therefore knows the processes well. As long as it is more efficient for the small biotech companies to give the part to Medpace, I continue to see the moat.

••

Soprano@Soprano

7Mês

@Tenbagger2024 I think this will continue to be the case because the bottleneck is the infrastructure and not the know-how.

•

ShrimpTheGimp🦐@ShrimpTheGimp

7Mês

I also got in with the first tranche last week 😉.

••

ThemenmitKopf@topicswithhead

7Mês

I'll have to see what they do, but doesn't $TMO and many others do the same? Buying Alphabet at the moment is also courageous, not that it's bad, but with everything that's going on I have extreme problems at the moment assessing who has a moat where. Not in view of the insolvency but the nevertheless respectable P/E ratio. Irrespective of this, some are lucky, some are not. I got a good start with ASMl TMO, Alphabet Linde and co, but burned hard with Novo and a few others. Although the business remains interesting, $AFX in particular is now extremely painful. I'll definitely take a look at the stock and start a debate if I don't understand why you got in now.

••

Soprano@Soprano

7Mês

@topicswithhead I don't remember Carl Zeiss. I'm still suffering here too.

Yes, Alphabet is not cheap either, but it can become even more expensive. The legacy business is actually worthless, but you were always raving about Waymo, TPUs and quantum computing, weren't you? 😅

So the bottom line is that it currently comes down to 4 aspects:

- Access to energy
- Access to hardware
- Access to computing power
- Access to AI

Alphabet, Amazon and Microsoft are actually the only ones that fulfill 3 out of 4 of these points, with Alphabet being the only one that has access without having to be externally invested anywhere. That's why these 3 are very promising to remain top 5 companies for many years to come

•

ThemenmitKopf@topicswithhead

7Mês

Don't check the business properly. Do they just do water treatment and the like? I thought that was mostly in (state) hands. Is it different in America, like waste management? What is the Moat, don't think that measuring devices are difficult to replicate. Who pays? The state and the citizens then or the citizens through direct levies. You could ask a Ki but you will have asked that question

••

Soprano@Soprano

7Mês

@topicswithhead They don't do water treatment, they make it possible. If you want to build a waterworks or sewage treatment plant for your city at all, you need equipment from Xylem. It's about pumps, turbines, agitators, filtration systems, disinfection, etc. There's probably competition in every area, but Xylem are the only ones who have such a complete pure play on water, from measurement technology to pipeline analysis to ultrapure water. They even produce the software themselves. You can definitely forget that a large city says it has its pumping stations managed by AI software - if the system fails or is attacked, you'll have hundreds of thousands of households without fresh water.

••

Maximilian@Max095

1Mês

I also find $MWA interesting as an alternative

••