Leandro's avatar
$122.3m follower assets
The Contest of Compounder Champions Grand Final
After a week of some tight pairings we get to the final of The Contest Of Compounder Champions. $V and $ASML have made it to the final!

Visa left $ZTS, $COST and $CNSWF behind, whereas ASML left Hermes, $ADBE and $LVMUY behind!

Who will win? It's up to you!
Which of the following would you say is a higher quality company?
37%Visa
62%ASML
24 VotesPoll ended on: 06/21/22
Leandro's avatar
$122.3m follower assets
Round 2 of the Contest of Compounder Champions!
After yesterday's polls, the following companies managed to make it through:

If you want to vote in the second round, follow the links below! They take you to the 4 polls!

Pairing #1 of Round 2: $COST vs $V

Pairing #2 of Round 2: $RACE vs $CNSWF

Pairing #3 of Round 2: $ASML vs $ADBE

Pairing #3 of Round 2: $TXN vs $LVMUY

Remember to comment with your reasoning so that everyone can benefit!

Thanks for participating!
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Eric's avatar
$10.6m follower assets
$LVMUY Buy On Recent Drop
Just opened a tiny feeler position in $LVMUY

To me, this is an amazing company at an attractive price that has been on my watchlist for a while. Need to dive back into this one, but I subscribe to the buy a few shares for the ownership mindset that many investors use
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I have been interested in $LVMUY but never concretely done my research and DD on it. I think it's a good strategy you have here in terms of entering with a small position to give you an ownership mindset. If you had to summarize why you think it's an amazing company what would be your reasons? Keen to have a deeper understanding.


Also are there any other players in the space you have been following for example it would be great to have your thoughts on $PPRUF
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Brad Thibeau's avatar
$101.5m follower assets
Long Term Individual Holdings
I've mentioned before I take a pyramid strategy to my investing. The all-encompassing picture across the whole family looks like this:

70% low cost ETF base split into 5 categories: 20% small-cap value, 20% small-cap growth, 20% large-cap value, 20% large-cap growth, 10% international(5% developed, 5% emerging)

The other 30% splits out into long term winners(28%) and 2% that my wife lets me do whatever I want with, so that's my short term moon shot gambling allocation. Personally, I feel the 2% is more important than the other 98%..because the 2% ensures that I don't touch the 98%..for the most part.

The tricky part about investing is when to know you need to change course. How to identify that you're in a moment that will define the next 10, 20, 30 years of humanity, while also understanding who's on the other side of your transaction. Morgan Housel has talked about how everyone has different timelines. Some people have 30 years, some people have 3 years, some people have 3 months, some people have 3 hours, and what an asset is worth to all of those people are very different. To quote Morgan exactly:
How much should you pay for Google stock today? The answer depends on who "you" are. Do you have a 30-year time horizon? Then the smart price to pay involves a sober analysis of Google's discounted cash flows. Are you looking to cash out within 10 years? Then the price to pay can be figured out by an analysis of the tech industry's potential over the nxt decade and whether Google management can execute. Are you looking to sell within a year? Then pay attention to Google's current product sales cycle and whether we'll have a bear market. Day trading? Then the smart price to pay is "who cares?" because you're just trying to squeeze a few bucks between now and lunchtime.
-----

Why do I mention this? Well, becomes sometimes your 10 year or 30 year outlook needs to be adjusted. There's nothing wrong with that, to be a "long term" investor does not mean to bury your head in the sand. For example, a goal to own Kodak for 30 years in 1990 would have found you completely empty-handed by year 23 as the world around you shifted.

So now, in the current environment, as we turn the page into 2021, I'm taking a look at changing things up a little bit in the long term holdings. I have some beliefs in certain areas, sectors, etc. Overall, as I sit down and put pencil to paper, here are some of the names I'm currently considering:
$GS **
$SQ *
$DIS **
$V *

*Already hold
** Already decided to continue to hold

You'll notice a couple of themes in here. Mainly lead by:
-Consumer, specifically "affordable luxury"
-Growing category leaders
-Quality value (with growth)

My plan is to get this down to between 15-20 names, if not less, buy those, and hold.

Expect more memos as decisions are made!
@amanda I do count retirement funds in that 70% passive category just to make sure I don't take too much or too little risk. I also count the couple private investments and RSUs that vest within 12 months in the individual holdings.

In regards to the breakout, that's a really good question. In my time at $MS I picked up on a 70% passive, 30% active portfolio study that showed outperformance somewhere along the way. I'll have to look for that study again and share it. Instead of using active mutual funds or ETFs for the 30%, I've just adopted the strategy to do it myself. So I was originally doing 70/30 but finding that I would get tempted to either chase things or miss out on opportunities because they didn't align with the goals of that 30%.

A couple of bad trades made me realize I needed a third bucket. 2% is kind of arbitrary, but I wanted that bucket to be big enough to be able to make moves and get returns, but small enough where if the whole thing went to zero it wouldn't rock the entire boat or carry over a significant negative impact onto the following year.

Ironically, the attention I pay to the buckets is probably completely inverse, but that's a good thing :).
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