Best Ideas Portfolio
About Our Best Ideas Newsletter
About the Best Ideas Newsletter
As part of your subscription to Valuentum, you will receive in your inbox on the 15th of each month our monthly Best Ideas Newsletter (in pdf format), which reveals our best ideas for capital appreciation potential constructed in a portfolio. This portfolio of best ideas may contain long positions as well as put and call options.
In the Best Ideas Newsletter, we write commentary associated with the companies in the portfolio and on stocks in the news, and notify you immediately via email if our thoughts or opinions have changed on any company or position. We send you notification emails, so you don't miss a beat.
Consistent with our investment methodology, the Valuentum Buying Index, the best ideas in the Best Ideas Newsletter may span investing disciplines, market capitalizations and asset classes. The newsletter puts the VBI methodology into practice. Read more about the Valuentum Buying Index rating system, "Value and Momentum Within Stocks, Too."
Very few newsletters apply a time-tested (yet innovative) process and embrace transparency. We can proudly say that we are among the few. Past results are not a guarantee of future performance. Click here to become a member and receive the next edition of the monthly Best Ideas Newsletter in your inbox and gain access to all premium commentary on our site.
Below we outline a few very brief summaries of ideas that we currently include in the Best Ideas Newsletter portfolio. Please note that these are just a few examples, and the Best Ideas Newsletter showcases many more timely and undervalued ideas with each and every monthly edition. Join Today!
At Valuentum, we often use a discounted cash-flow model as a means to back into the current share price of firms in order to ascertain whether the market is unfairly pricing their stock relative to reasonable long-term growth and profitability assumptions. In Apple's case, we believe the market is merely pricing in inflation-like expansion beginning toward the latter end of this decade. Although in the land of technology, competition adapts quickly and a few years from now can be viewed as the distant future, we think the iPhone-maker represents a compelling risk-reward opportunity at current levels based on our analysis. Often, evaluating a firm via a discounted cash-flow model and re-engineering its stock price can provide a better understanding of a company's investment potential on a risk-reward basis than even the most clearly written prose.
Booking, formerly called Priceline, is probably one of the best more-recent examples of the Valuentum Buying Index in practice. Registering a pristine 10 in February 2015, the stock now has been a strong winner in the portfolio of the Best Ideas Newsletter. The online travel giant continues to generate substantial free cash flow as it grows at an impressive rate, and we love its net cash position, inclusive of long-term investments.
Management's comments have also been quite reassuring to the pace of global economic resilience. International business accounts for ~90% of Priceline's gross bookings, with the US making up the balance. Such a cash-rich business eases our concerns with the risk involved in holding an entity so sensitive to the economic cycle at this mature point in the global economy’s expansion. Shares continue to have some room to run based on the upper bound of our fair value estimate range.
Booking's virtuous cycle is firmly intact and represents one of the strongest competitive advantages a company could ever have. Strong partner relationships allow it to provide top-notch property selection, an enhanced customer experience helps drive increased conversion and traffic, while increased traffic allows it to further improve the customer experience and partner satisfaction.
It’s hard to find anything wrong with Visa’s business model. The company offers a secure, payment network that is accepted virtually everywhere in the United States. The firm makes money every time a Visa user swipes his or her debit or credit card. Unlike rivals, Discover and American Express, Visa doesn't hold customer credit risk.
Visa benefits from two fantastic competitive advantages: a network effect and costly initial investment. The network effect is incredibly strong for Visa. As of its last update, the firm has more than 3.1 billion cards outstanding accepted by retailers across the world. The number is significantly higher than the number of Mastercards and many times the number of American Express cards outstanding. This network effect took years, as well as billions of dollars to create—something that won’t easily be replicated by any new entrant.
Most importantly, Visa generates incredible operating margins in the 60% range, leading to large levels of free cash flow generation. The company continues to possess valuation upside and is one of the most shareholder-friendly companies in our coverage universe.
Past results are not a guarantee of future performance. The High Yield Dividend Newsletter portfolio, Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio are not real money portfolios. Results are hypothetical and do not represent actual trading. Valuentum is an investment research publishing company.
About Our Name
But how, you will ask, does one decide what [stocks are] "attractive"? Most analysts feel they must choose between two approaches customarily thought to be in opposition: "value" and "growth,"...We view that as fuzzy thinking...Growth is always a component of value [and] the very term "value investing" is redundant.
-- Warren Buffett, Berkshire Hathaway annual report, 1992
At Valuentum, we take Buffett's thoughts one step further. We think the best opportunities arise from an understanding of a variety of investing disciplines in order to identify the most attractive stocks at any given time. Valuentum therefore analyzes each stock across a wide spectrum of philosophies, from deep value through momentum investing. And a combination of the two approaches found on each side of the spectrum (value/momentum) in a name couldn't be more representative of what our analysts do here; hence, we're called Valuentum.
Valuentum has developed a user-friendly, discounted cash-flow model that you can use to value any operating company that you wish. Click here to buy this individual-investor-friendly model now! It could be the best investment you make.
The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Nelson Exclusive publication, and any reports and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor, and does not offer brokerage or investment banking services. The sources of the data used on this website and reports are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum, its employees, independent contractors and affiliates may have long, short or derivative positions in the securities mentioned on this website.