Nov 29, 2021Liked by The Science of Hitting

Great stuff, thanks Alex. I've been thinking a lot about this recently, especially as I've learned more about someone like David Gardner's approach (in comparison to learning the "Buffett methodology" originally). In the end, I've landed in an extremely similar place to you. Very grateful to have crossed paths! Here's to some big opportunities in the future, as we wait patiently :)

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Nov 30, 2021Liked by The Science of Hitting

I wonder why you prefer this vs say, 90% passive and 10% the stocks you like? or 50/50? I understand single stocks are fun but do you really need to be 100% in a concentrated portfolio?

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Dec 1, 2021Liked by The Science of Hitting

Thanks Alex for sharing your investment philosophy !! I have been thinking a lot recently with regards to appropriate philosophy for my own portfolio based on my emotional traits and this post was right on time to help me with that ..

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Dec 20, 2021Liked by The Science of Hitting

Alex - As usual, wonderful job of expressing your investment philosophy so clearly. You have helped me shape an approach that is truly long-term (so many folks just pay lip service to the concept). I had the daunting task of allocating some of my family's assets into publicly traded securities (we were fortunate to monetize our family business several years ago at a value that few of us could have imagined), and your posts have been a wonderful resource and a "sanity check" on my previous ideas about investing for multi-generational family members.

That said, I would appreciate your thoughts on two ideas/concepts:

1) I think FCF/Share growth as the best proxy for the intrinsic value growth of a business. If you think about what is included in FCF/Share, it includes so many important value drivers - revenue growth, margins, ROIC, balance sheet management, etc. So if I had to distill my approach down to the most important metric, I look at long-term FCF/Share growth.

2) I tend to reverse-engineer DCFs to back-solve for the required terminal multiple of FCF that I need to earn my cost of capital (I use 10%). So my FCF growth estimates and the 10% discount rates are my inputs, and the terminal multiple is my output. I feel that the actual terminal multiple is unknowable, so I want to make my decision as easy as possible, without any false precision. It is like an over/under. If I think the actual terminal multiple will be greater, then my IRR will be > 10%, and vice versa if I think that actual terminal multiple will be less.

Curious to hear your thoughts.

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You are my favorite writer on Substack! Enjoy reading your investment philosophy and research process.

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Oct 6, 2023Liked by The Science of Hitting

Hi Alex, I hope you're doing well. Massive fan of your Substack/Twitter.

I am a founder of Zeed (https://zeed.ai/). We're helping creators transform their written content (like this Substack) into dynamic video pieces using AI to capture new audiences.

Would love to show you an example and jump on a call if you're interested in hearing more! Best, Rohan.

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Jan 28Liked by The Science of Hitting

Hello! Do you publish your portfolio perfomance somewhere? Or performance of this Substack recommendations, or something to that effect?

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