Leandro

I wrote an article with my thoughts on $AMZN's PE ratio and why it's pretty misleading.

Goes back to the point that it's impossible to look at a valuation ratio without context, something that many fall prey to.

Hope you enjoy it!

Very interesting Constellation Software expert call. Discusses some things around the "M&A machine" and Lumine, which is expected to start trading next week.

(You can read the full call using this link, there's a two-week free trial and no need to enter payment information of any kind.)

Some highlights below:

Companies are allocated based on who touched them last:

Decentralization taken to the extreme:

Most of the profit in telecom and therefore in Lumine is found in the service agreements:

And Lumine has high switching costs:

Constellation sometimes follows the Transdigm model:

Price increases were "mandatory", but it was up to the BU leaders to decide how much the market could withstand:

(You can read the full call using this link, there's a two-week free trial and no need to enter payment information of any kind.)

Yesterday I uploaded an article to the public side of Seeking Alpha discussing three companies that should benefit from an inevitable trend.

Hope you enjoy it!

Yesterday I uploaded to the public my thoughts on Applied Materials' new tool to reduce EUV double patterning.

At first it does not look like great news for $ASML but investors should look at the big picture.

I hope you enjoy it!

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This week I read an interesting call with a digital marketer on Amazon's 3P services and ad spend.

They believe 3P GMV is growing due to:

Incremental ad spend will probably slow down now that it's at 10-15% for sellers. Only very high-margin products can justify spending more on Amazon Ads:

Walmart is closing the gap with Amazon regarding advertising. There's still a large gap but the company is going aggressively for Amazon. Amazon is less efficient but the base is much larger:

There are of course pros (customer acquisition, fulfilling) and cons to Amazon, but the expert believes that sellers will end up leaving Amazon if they continue to get squeezed

The "squeeze" can also translate to higher prices for Prime members:

Sellers try to cover a lot of real estate ground on Amazon (brand ad + sponsored ad + organic listing) to enhance credibility:

Amazon is trying to grow ad spend by offering more ad products.

The percentage sellers spend might not change but the pie will get bigger, fueling ad growth:

Amazon can come out with a game changer which would be an automatic bidding bot to achieve the highest level of sales possible with a pre-determined budget:

According to the expert, Amazon is catching up to Google ad capabilities pretty fast. Same goes for Walmart:

All the images above come from an AlphaSense expert call transcript. There's a 2-week free trial (no CC required) using this link. You can download as many calls as you like during your free trial.

It's been a long time since I have published something on CommonStock as I have been quite busy with work and some personal things, but expect to post more recurrently from now on. I think that the conversation I had with François Rochon, founder of Giverny Capital, was the perfect way to come back to posting here.

François Rochon has achieved a mid double digit CAGR for more than 30 years and has deeply influenced my investing style. I felt fortunate he gave me a bit more than an hour of his time to talk about topics such as valuation, investor psychology, what makes a quality company, mistakes...

You can consume the conversation in the format you prefer:

Hope you enjoy it as much as I did!

The Best Anchor Stock portfolio and service is almost one year old and I have taken the past couple of weeks to reflect on its performance.

Here's a one pager I prepared as a summary of the portfolio's quality and its performance in 2022 (check the link below for more information):

As a one-year anniversary together with the new year, we are currently running a promotion in the annual subscription. 25 users will be able to enjoy a 25% discount, enjoying a two-week free trial to make their mind up!

You can find more details about the promotion and the portfolio's performance in the link below:

I wrote a short article on the concept of delayed gratification, so crucial for long term investing yet so difficult to master.

Hope you enjoy it!

Constellation Software announced some weeks ago that it would spin-out Lumine to acquire WideOrbit and create a communications and media focused company.

I wrote an article to go over the details of the transaction and what it means for Constellation's shareholders.

Some books out of my library that I believe any investor should read.

Would add two more (I have them in kindle version):