When considering ‘Is it better than what you’ve already invested in’ must you not have a fact sheet of KPI’s which the potential new biz must equal or exceed?
Yes, there is more going into it than just the 2-pager when making that decision. For a quality company, historical performance plays a big role in it.
Excellent article as usual Kevin. Never thought about the virtues of being a Zebra, but there you go. One suggestion for your quick analysis - think like a pilot - what are the three key gauges to monitor when testing the worthiness of the potential investment. For mine they are ROE or ROCE, Net debt/ equity and a squizz over the history of eps growth ( as a proxy to determine the quality of management). Interested in others thoughts on this.
I think your IVFH perspective was interesting enough to get it on a watchlist. I tend to like things that are much closer to an inflection or in the middle of one. I don’t like to look a couple years out with microcaps. Most of the stuff I buy is already showing substantial improvements in operating metrics. Ideally I want that same 100% upside, but in a year rather than 5.
I owned IVFH years ago, and sold at a nice profit when the business was still inflecting up. I took it off my watchlist when they bought the monthly pickle subscription business. It struck me as a terrible idea from then floundering management. Good write up.
When considering ‘Is it better than what you’ve already invested in’ must you not have a fact sheet of KPI’s which the potential new biz must equal or exceed?
Yes, there is more going into it than just the 2-pager when making that decision. For a quality company, historical performance plays a big role in it.
Excellent article as usual Kevin. Never thought about the virtues of being a Zebra, but there you go. One suggestion for your quick analysis - think like a pilot - what are the three key gauges to monitor when testing the worthiness of the potential investment. For mine they are ROE or ROCE, Net debt/ equity and a squizz over the history of eps growth ( as a proxy to determine the quality of management). Interested in others thoughts on this.
🙏 Damien, I think you can read my mind. You'll find the answer in next week's article 😉
I think your IVFH perspective was interesting enough to get it on a watchlist. I tend to like things that are much closer to an inflection or in the middle of one. I don’t like to look a couple years out with microcaps. Most of the stuff I buy is already showing substantial improvements in operating metrics. Ideally I want that same 100% upside, but in a year rather than 5.
I agree. I would have liked it to be more of a no-brainer, but we'll keep track how it plays out. Thanks for your insights!
I owned IVFH years ago, and sold at a nice profit when the business was still inflecting up. I took it off my watchlist when they bought the monthly pickle subscription business. It struck me as a terrible idea from then floundering management. Good write up.
Thinking of getting back with all the changes?
Welcome on board, and thanks for linking my write-up.
My pleasure. Excellent work!