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$134.7M follower assets

Doing deep research of individual companies in the chase of alpha.

Main contributor at Best Anchor Stocks. There's a two week free-trial.

Founder of The Global Investor
Leandro's avatar
$134.7m follower assets
Why Amazon's Financials and Valuation are misleading
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!
Really enjoyed your article Leandro.
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Leandro's avatar
$134.7m follower assets
How does Constellation Software operate?
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:

"Reached out directly to Mark Leonard. I sent him an email, said "You've prescribed this thesis. If you're looking for companies like this, here's how I fit the mold."

He replied back to me in 24 hours, sent me on to his M&A guy at Constellation named Shahzad."

"Aren't you going to just walk me out the door just like normal M&A happens here?"

"In their massive Salesforce instance, where they're tracking all companies and activity and reach outs for M&A activity, we weren't in there. We were the anomaly."

Companies are allocated based on who touched them last:

Decentralization taken to the extreme:

"If you want to have a purely financial services slant and build a portfolio of companies within Lumine so that you're going to manage, you could do that"

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

And Lumine has high switching costs:

"Once you're entrenched in a telco, it's a large project in order to pull something out to replace it."

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.)
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Leandro's avatar
$134.7m follower assets
3 companies to ride an inevitable trend
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!
Leandro's avatar
$134.7m follower assets
Is Applied Materials' Sculpta a threat to ASML's EUV monopoly?
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!

Thanks for posting here. Great article as always
Leandro's avatar
$134.7m follower assets
Some takes on $AMZN Ads Business
All the images I included in this post 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.


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:

  1. Sellers getting better at selling on Amazon
  2. Amazon's expanded services
  3. Pullback in certain 1P categories
  4. Ability to cash out

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.
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It's great to see sellers becoming better at selling on Amazon marketplace. Is it because the marketplace makes it easier for sellers to sell products or sellers are becoming more tech savvy?
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Leandro's avatar
$134.7m follower assets
A Conversation With François Rochon
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!
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Will be running this in the Sunday curation issue! Great stuff.
+ 1 comment
Leandro's avatar
$134.7m follower assets
Best Anchor Stocks' 2022 Annual Recap and a Special Offer
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.

  • The portfolio was down 4.8% in 2022, significantly beating the indexes.
  • V**olatility** was also in line with the indexes, which is an important aspect of Best Anchor Stocks.

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:

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Leandro's avatar
$134.7m follower assets
The power of delaying gratification
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!
Love that you've explored the theme of the marshmallow experiment in context of investing Leandro. By the way this takeaway is only those investors who behave like owners are really positioned to participate in the wealth creation of great companies" is a golden nugget.
Leandro's avatar
$134.7m follower assets
All you need to know about Constellation's Lumine spin-out
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.
Looking forward to reading this! Thanks 🙏
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$134.7m follower assets
Books, books, books
Some books out of my library that I believe any investor should read.

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

  1. 100 baggers by Chris Mayer
  2. Investing for growth by T. Smith
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I need to add "quality of earnings" and "there's always something to do" to my reading list for the new year. Thanks for sharing Leandro
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