Hi Multis
Happy Easter if you celebrate.
I don’t always publish the Overview Of The Week on such special days, but I wanted to do it this week, especially because I have an announcement to make. And of course, as always, some thoughts about the markets. Let’s dive in.
Articles In The Past Weeks
This is just the second article this week. The first one was on Topicus. You can read it here.
A NEW PICK!
There were two reasons I published only one article this week.
The first one was private. On Wednesday evening, my good friend Michael Gielkens invited me to Maastricht to hear Sofina CEO Harold Boël speak.
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If you don’t know Sofina, it’s one of the best Belgian holding companies. It’s been run by generations by the Boël family, who made their fortune through steel.
While I was in Maastricht, I also took my bike with me and did two days of cycling, which really gave me the same feeling as a full week of vacation.
The first day, I did a relaxing and flat 50-km ride in Belgian Limburg, the second day was an 80-km ride in Dutch Limburg. There, I did some hills you might know from the Amstel Gold Race (if you like professional cycling): Cauberg, Geulhemmerberg, Bemelerberg, Looorberg, Camerig, Vaalserberg and several others that are not included in the race.
But there was a second, for you much more important reason why I only published one article this week: research.
Two weeks ago, I already wrote this:
I’ve been researching much more this week, as there are more attractive stocks with this pullback. There may be crystallizing something, but I’m not sure yet.
It’s that same stock that really convinced me in the last few weeks. I’m always careful to share anything because I want to have the option to withdraw at any step of the process. If I find something that impacts the thesis too much, I want to throw away my work. Without a doubt or without sunk cost fallacy. If I announce too much in advance, I feel too obligated to live up to my promise.
But I have done all the work now and found nothing about the new pick that worries me too much and a lot that makes me really excited. That’s why you will get the new pick this week, probably on Tuesday or Wednesday. I have the outline of the first article, but it still needs some work.
I’m very excited about this new pick. It has been on my Watchlist for a long time and because of the recent pullback, I think it’s the right time to invest in this company.
Memes Of The Week
Just one meme this week, but it’s a good one.
Interesting Podcasts Or Books
This week, I listened to the No More Investing Secrets podcast.
The episode was about Constellation Software, the SaaSmageddon, Wise and much more. You can find it here.
The markets in the past week
This week, the markets were up substantially. The Nasdaq won 4.44%, the S&P 500 3.36% and the Russell 2000 3.28%.
While the Greed & Fear Index dropped to 9 early in the week, it ended the week at 19. Still in Extreme Fear, but not as much as it was.
Quick Facts
1. Buy Stocks!
Ben Carlson wrote this on X this week:
No one knows how long a correction will last when you’re in it But buying stocks when they are down tends to be a good long-term strategy A look at what happens when you buy the stock market down 10%, 20% and 30%.
I keep repeating such stats because I know it’s necessary. I’ve seen it so many times before: people nodding when I point such things out, even saying “of course” when I show them the theory, but when it comes to action, they are still doing the exact opposite of what they theoretically know to do.
The difficult thing about investing is that we are used to immediate feedback, not delayed feedback. In that sense, investing resembles the long-term effort of building a business, training for a sports career, or anything else that takes years to build. There will be rough patches, like injuries in sports, but only with persistence, you will succeed.
This overview shows the same thing.
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As you see, in most of the years, 63% of the years to be exact (12/19), the stock market was positive from day 60 to the end of the year.
Now, to be honest (and long-time Multis know this), I don’t care about my returns for the year. I focus on the real long term, preferably decades.
2. Is It Time To Buy Nvidia Again?
This week, several people sent me this and today, Karan also shared it on Slack.
Quietly, Nvidia seems to have become very cheap again, at just 18.7x forward earnings, a multiple it has not traded at since 2018. That’s crazy, if you know that the stock is up 60% over the last year and 1,170% over the last 5 years.
The funny thing is that many people think Nvidia is expensive because it’s up so much. But you can see here, that it’s not multiple expansion, just sheer earnings power.
The Return Of The Potential Multibaggers
So, how did our stocks do this week? This is an overview of all the stocks that moved 5% or more. There were 10 stocks this week, all up more than 5%.
Do you want to know which 10 stocks and get the new pick? Then it’s time to upgrade your subscription!
You can try out Potential Multibaggers for 7 days and unsubscribe with just a few clicks if you don’t like it.
Don’t wait! Try it out now!