I aim to provide investment ideas that generate alpha. I am an independent investor who manages my family’s portfolio, mainly through a Self Managed Super Fund. My articles deliver 5-Minute Pitches that focus on driving the fundamentals and technologies of the security. I have a general approach as I test, analyze and invest in any sector until the alpha power is seen compared to the S&P500. The typical holding period ranges from a few months to several years. I am mainly focused on adding value through alpha implementation. I always start with a performance test section for each follow-up article. I publish extraordinarily detailed statistics on my long-term, zero-rated portfolio performance on my Hunting Alphas website every month. At Hunting Alphas, you can also access the models for all the tickers I publish. A little about how I approach research and stock coverage: I create and maintain spreadsheets that show historical financial data, key metric disclosures, trend data and surprises versus consensus estimates, time series values versus peers, leading performance indicators or other performance indicators. In addition to company filings, I also keep an eye out for relevant industry news and reports as well as other people’s coverage of the stock. In some cases, such as times of CEO change, I will do a deep dive into the background of the main leader and his previous performance record. It is very rare to build DCFs and project funds for many years to come as I do not think it adds much value. Instead, I find it more useful to examine how a company has delivered and a broader view of the 5 key drivers of DCF valuation: revenue, costs and margins, cash flow changes, capex and investments and interest rates (which affect the discount rate/opportunity cost of capital). In some cases, especially for companies that trade at very high multiples on a TTM or 1-yr fwd basis, I do a reverse DCF to make sense of the CAGR growth implications. Note: Hunting for Alphas is related to VishValue’s Search for Alpha research.
Analyst disclosure: I/we do not own a stock, option or similar derivative position in any of the companies mentioned, but we can initiate a profitable Long position by buying stock, or buying call options or similar derivatives on AVGO within the next 72 hours. I wrote this article myself, and it expresses my opinions. I get no compensation for it (other than Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha Disclosure: Past performance is no guarantee of future results. No recommendation or advice is given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not necessarily reflect those of Seeing Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third-party underwriters that include both professional investors and individual investors who may not be licensed or certified by any institution or regulatory body.
