Hi Everyone 👋,
Welcome to the #40 issue of 247capital — your weekly source of Investment Research. If you are new, you can join my email list here, or👇🏻
Please hit the heart button ❤️ if you like today`s letter and reply with any feedback.
Below you´ll find the overview of all bought shares since Issue 1 and the current state. Please keep in mind we´re here for the long run. 5-10 years horizon at least.
$TAP - bought at $44.95 - Issue 1
Closed the week at $45.60 (up 1.44%)🔥
💰$0.34 dividends
$GEO - bought at $5.79 - Issue 7
Closed the week at $8.38 (up 44.73%)🔥
XTRA:DFV - bought at 12.96€ - Issue 8
Closed the week at 11.18€ (down 13.73%)❄️
READ - bought at 39.25SEK - Issue 12+24
Closed the week at 18.37SEK (down 53.19%)❄️
$HIMS - bought at $8.28 - Issue 12+25
Closed the week at $6.88 (down 16.90%)❄️
THG - bought at 373.50pc - Issue 32+36
Closed the week at 187.30 (down 49.85%)❄️
With Omikron kicking in at the end of last week, prices dropped again 🙈
THG - Second largest shareholder in retail and software giant THG increases stake.
Sofina Capital now has a holding of more than 9% in the Greater Manchester-headquartered group, up from just over 8%.
The move comes after US-based investment firm T. Rowe Price has snapped up a 5% stake in THG earlier this month. That deal made T. Rowe Price THG's eighth largest shareholder at the time.
Co-founder, chairman and chief executive Matthew Moulding remains the largest single shareholder in THG.
$HIMS - Hims & Hers Health announces an on-demand delivery partnership with Uber.
The deal allows HIMS's personal care products to be delivered via the Uber Eats app in 12 markets across the U.S. These include Los Angeles, San Francisco, Sacramento, Miami, Houston, Austin, Dallas, San Antonio, Philadelphia, Seattle, Atlanta, and Phoenix.
Our relationship with Uber will be the biggest on-demand push we’ve pursued to-date, and we are incredibly pleased to offer the ability for so many more people to be able to access our high quality health and wellness products when they need them.
— Melissa Baird, Chief Operating Officer of HIMS
Plus: Hims & Hers products will also be available on-demand through Postmates, a separate delivery app owned by Uber.
Hello, dear readership !!!
Today I want to answer a question from one of our subscribers who asked me to remain anonymous. Of course, I will comply with your request and will not give you a name.
The question was:
Hello Florian, I am using the opportunity to ask a question for the first time today and I would be happy if you could go into it. I really enjoy reading the Stock Brothers section and am happy every time it says Stock Brothers.
You write yourself that you are rather conservative and with the companies presented so far like CLF, WY, BASF, STERV, which I would also classify as conservative I wonder why you are investing in growth companies like HIMS, READ or THG?
All three companies are currently making no profit and paying no dividends. That's actually not conservative, is it? I am curious whether you will answer my question. Keep it up!!!! I always look forward to Monday.
Here´s my answer:
The question is fascinating; thank you in advance for your feedback. As always, this is NOT investment advice, just my thoughts. Everyone is responsible for their own investment decision and does their own due diligence reviews.
Yes, it is correct; HIMS, READ, and THG are currently not making any profits and are not paying any Dividends. However, I would like to look at the three companies mentioned from a different perspective.
What are these companies doing, and where is the conservative approach?
Do I understand the business model?
Does the company bring added value for the users of its products?
Is the product still interesting in ten years?
Do I personally have a fantasy for the future?
Let's start with Readly (READ) because this company became the most beaten up. Readly makes various magazines and journals available to its subscribers. Newspapers and magazines are very conservative businesses.
Can you think of a train station, a kiosk, or an airport with no magazines or newspapers? The business model is to provide individual information for customers who are on the go or at home. Updated daily, weekly, or monthly. So in different cycles but more precisely Regularity.
What is the added value for Readly's customers?
In my opinion, the two most important benefits for Readly subscribers are:
1. Unlimited access (quantitative) to journals and magazines at no extra charge.
Sample calculation:
The Readly subscription costs around € 10 a month. The reader has a favorite magazine that appears weekly and costs € 5. With four weeks a month, the customer would have to pay € 20 a month at the kiosk. With the Readly subscription, he saves 50% every month.
Every additional product that the customer reads increases his savings compared to buying in print because the subscription price does not increase.
2. Immediate availability, guaranteed availability, and archive possibility.
The customer does not have to drive to a special magazine store for their favorite magazine in the range but has it on the mobile phone as soon as it appears.
The customer saves time and resources (parking ticket in front of the kiosk when arriving by car) and doesn't worry that the magazine is sold out.
Even when on vacation or a business trip abroad, the customer never misses an issue. If there is no time, you can read the issue at a later point in time.
Will the product still be interesting ten years from now? Is there a future fantasy for me personally?
Magazines and journals will still be around in 10 years. Anything else would surprise me. It remains to be seen whether the sales channel will continue to focus so strongly on stationary retail.
20 years ago, could you have imagined that there were no longer any video stores available where you could rent films?
But although there are no longer any video stores (to any significant extent), there were never so many films and videos consumed as currently. Just think of Netflix, Youtube, etc.
Historically, publishers are some of the richest people of their respective epochs. In America, the media tycoon to call would be William Randolph Hearst.
In Germany, Burda, Springer, Mohn (Bertelsmann) are popular families well known in the publishing industry.
For me personally, the future fantasy is that the paper and magazine segment has historically earned a lot of money and will continue to do so in the future.
In 1973, Warren Buffett bought 10% of the Washington Post. In 2013, Amazon founder Jeff Bezos bought the Washington Post for $ 250 million. I am not aware of any better competing product compared to Readly.
The young readers (i.e., the future customers) no longer have a daily newspaper in their mailbox as a subscription. Instead, you can read and find out more online with your smartphone/tablet.
Therefore, the film's video library is the paperboy of the newspapers, a relic from the past. On the stock exchange, however, it is not the past that is traded but the future.
That's why I'm not investing in a paperboy from the 80s, but the paperboy of the future. Who wants to understand, see and feel the difference … watch the video below 😉
It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.
— Charlie Munger
Barbarian Capital@BarbarianCap
Half of this year’s big IPOs are under water ft.com/content/4c68c3… "Dealogic data show 49 per cent of the 43 IPOs that raised $1bn or more this year in London, Hong Kong, India and New York are trading below their issuance prices." > thanks for playing
ft.com
Subscribe to read | Financial Times
12:20 AM · Nov 29, 2021
5 Reposts · 22 Likes
Morning Brew ☕️@MorningBrew
JP Morgan is suing Tesla for $162 million over a trade the bank helped arrange in 2014. Elon's response: "If JPM doesn’t withdraw their lawsuit, I will give them a one star review on Yelp,” Musk told the WSJ. “This is my final warning!”
3:59 PM · Nov 22, 2021
916 Reposts · 9.91K Likes
Sahil@shl
Invest your money where the smartest people invest their time.
3:40 PM · Nov 23, 2021
2.33K Reposts · 14.8K Likes
atrophy wife 🎀@zuza_real
9:35 PM · Nov 19, 2021
9.75K Reposts · 166K Likes
Brian Feroldi@BrianFeroldi
100-baggers are found at the intersection of opportunity, execution, patience, and luck
7:04 PM · Nov 26, 2021
66 Reposts · 717 Likes
The heads of the seven largest U.S. tobacco companies testified under oath before a House committee in 1994 that nicotine is safe.
Maybe we should have a closer look into that industry in one of the coming issues 🚬
5 points of the week - From the book “100 to 1 in the stock market.”
Curated by the Big Investor Blog:
The more successful one is at market timing, the greater the temptation to rely on it and thus miss much greater opportunities to buy right and hold on.
Most deception is bad, but self-deception is worse because it is done to such a nice guy 🙂
The shortest route to making money in the market is to buy gold stocks when nobody likes them. The only problem is that good stocks seldom have friends.
When you say good stock, most people think of earnings, but the company can also have assets that are earning nothing at the moment. Great assets are potential earning power.
Rather than current ratios, use statistics to back up vision and foresight. But then, please do your research and have faith in it.
That´s the end of the 40th jubilee edition.
If you like my content so far, you can donate me a coffee here to keep me awake.☕️😁
Got Feedback, Questions, or Suggestions? Just Hit Reply; I’d love to hear your comments.
Thanks for reading, and until next Monday,
Sebastian from 247capital
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