This section of the blog focuses on discussions and analyses of individual growth companies as well as the methodologies and tools that I utilize to arrive at investing decisions. The posts about specific companies will have the most value at the time of the post and may lose relevance over time. My opinion of a company tends to change as businesses, as well as the markets that they serve, are dynamic. Additionally, my investment choices are all about relative comparisons among alternative investment choices. An A versus B comparison between great potential investments may lead me to choose one and discard the other. I may discard a perfectly good company from my portfolio if I find one that I like better. There is little room for loyalty to companies when new information contradicts or changes previously held notions and assumptions; in such a case the investment rankings should be adjusted and a portfolio change may be warranted. Thus, I am a firm believer that adaptability and ruthlessness can serve one very well when running a concentrated growth portfolio where the penalty for unnecessary mistakes is more severe than it is for a less concentrated portfolio. When a decision is clear and obvious then a change or adjustment should not be delayed.
Since the middle of 2017, my portfolio has been mainly concentrated in the IT software sector. SaaS companies as a group have provided investors with fantastic returns over the past 4 years. Today, my portfolio remains highly concentrated in the SaaS universe despite the fact that valuations of these companies have increased considerably. While my analyses have been focused on SaaS companies for a number of years, it is possible that my focus may shift as industries and markets evolve. Thus, the financial metrics that are typical for SaaS companies that I currently use could also change if future evaluations are directed at different industries where alternative financial metrics are more relevant. Should I choose to shift my focus to companies with different business models, it is very likely that my analysis methodologies may change as well. Therefore, the posts on my methodologies as they are applied to SaaS companies in the present time may lose some relevance.
The main goal of my investing is long term capital appreciation. As such, I attempt to identify companies that I believe will appreciate the most (in terms of the stock price). I am not interested in receiving dividends, nor am I interested in minimizing volatility. My investing optimizes for long term capital appreciation over other factors such as dividend/income payments and volatility minimization. Other investors may not share my priorities which may make my approach and my opinions less relevant to their goals. There are many ways to invest successfully including investments outside of the publicly traded stock market. It so happens that I have chosen to focus on companies that trade on the major public exchanges.
The opinions, thoughts, analyses, stock selections, portfolio allocations, and other content is freely shared by GauchoRico. This information should not be taken as recommendations or advice. GauchoRico does not make recommendations and does not offer financial advice. Each person/investor is responsible for making and owning their own decisions, financial and otherwise.