I was recently interviewed by Edwin Dorsey on Sunday's Idea Brunch! We talked about my background and why I do things the way I do. I try to explain my reasoning with examples whenever I can.
I had a lot of fun on this one and Edwin asked great questions to bring out the conversation.
Enjoy!
You can find the interview on Edwin's substack. And here's a pdf for those without a subscription.
-Dan
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Dan, wonderful interview. Your performance with 50-60 stocks is remarkable. What % of your portfolio is usually in your top 10 ideas?
ReplyDeleteyou can see my portfolio and weightings in my annual performance post every year: https://www.nonamestocks.com/p/portfolio-performance.html
Deletefor example: http://www.nonamestocks.com/2023/04/noname-annual-performance-2022-2023.html
Thank you - sorry had not seen those.
DeleteI've got a lot to learn about your process -- was checking out PGNT as one of your "quality" picks but man, negative 1.3mm operating cashflow off of 125mm revenue? Pardon me but that's terrible. I'm the coo of a small (private) business who did approx 3.5mm revenue last year with about 400k in operating cashflow and our attitude is that we've got lots of room for improvement.
ReplyDeleteMaybe just an off year
Did I ever call a pick quality? In any case I disagree that PGNT is terrible
DeletePGNT cash over the past 6 years: 1.6m, 3.4m, 3.9m, 5.3m, 7.5m.
Book value over the past 6 years: 6.8m, 10.2m, 12.4m, 15.2m, 19.4m.
If a company is really high quality then it's probably not on my radar. Everything I look at has issues. My general method is guesstimating the general public has extrapolated issues too far on the negative side
DeleteLooks like you're a "cigar butts" investor. A few puffs left in a left-for-dead company. Sorry, only recently found your site and started going through it. My experience is cigar butts can work for a "first thing I do when I wake up is check my port" kind of person. "Quality" investing applies to quality of life, too; or at least in my case.
DeleteMy quick take on PGNT was that the low margin was concerning. Lowest cost providers (i.e. low margin, high volume) can do well, e.g. Mckesson, Davita, Murphy USA, etc., but with a tiny company, it's a bit white-knuckle. Those big boys I mentioned have huge capex investments and competitive advantages.
Growing book value is a good thing obviously. But for that cash increase over the past few years, a decent amount has been debt. Operating cashflow seems quite volatile.
I check my portfolio when I wake up, very frequently all day, and when I go to bed. That's how you catch the spikes
DeleteInteresting dynamic between Paragon and Ocean Power Tech (OPTT). See PGNT's recent press releases on Yahoo.
ReplyDeleteBy the way: you are still investing with Ault crook the iii
ReplyDeleteyes I do still hold GIGA which he took over that's true. I just don't own AULT
DeleteSince ho took it it’s down the toilet. I guess he will also dilute it to death . He is showing himself driving mazarati.
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