Is There FOMO in Quality Land?
+ Topicus with a new equity investment worth 170 million EUR
Welcome to another weekly digest to stay informed about everything that matters most to quality growth investors!
The goal of these digests:
to elaborate on premium members’ questions (you’ve provided some great inspiration for future posts and deep dives, thanks for that!);
to have a high-level discussion on some macro events;
to elaborate on some fundamental topics;
to talk about portfolio strategy;
to highlight a research piece that may be of interest to our members;
In case you’ve missed our previous articles/webinars/earnings recaps/deep dives, we did share a couple of blogs on our favorite stocks for 2025 and beyond, and our Q4 and FY24 Letter.
Five stocks that balance high-quality, nice growth, cash flow resilience, and defensive traits.
Talking about our Portfolio’s performance, which valuation metric we prefer, our companies’ growth in underlying earnings, market environment, and highlighting the investment thesis for all our 11 companies.
Our favorite valuation metric to value quality growth companies: NOPAT (Net Operating Profit After Taxes).
In this digest, we’d like to share our perspective on:
DeepSeek blues revealing how quickly momentum for passive investing can fade, volatility on earnings reports;
Otis and Lifco’s Q4 reports;
Recent portfolio reshuffling based on valuation concerns;
Topicus’ latest equity investment worth 170 million EUR