Our Valuation Model: Key Concepts
Why we look for high-quality growth
Hi subscriber!
In this new bi-weekly update, we’ve talked about:
Q1 earnings season - mixed signals, and why many companies’ earnings estimates are too rosy. We’ve also addressed the divergence between LVMH and Hermès, and look at next week’s reports.
Key highlights from our Q1 Letter - why we favor low/negative working capital businesses at a time of tariff uncertainty. Plus, why we’re careful about investment cases where excess free cash flow makes up a significant part of the expected return, when there’s no crystal-clear capital allocation strategy (other than a small dividend pay-out).
How we approach valuation - going over the ins and outs of the Harvia investment case and discussing every item of our valuation model.
The video presentation can be found below including the transcript and slide deck.
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