GARP
iShares MSCI USA Quality GARP ETF
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I'm at 30% YTD in my Value driven style portfolio and 17% YTD in my more actively managed swing trade Portfolio. In my experience, it's a lot better if you can stick to a set of rules or strategy of a certain portfolio. For my value investing portfolio I've setup screeners to find stocks that present Growth at a reasonable price (GARP) and also pay a dividend. I do not chase the high fliers in this portfolio, I instead find beaten down stocks with compressed multiples and buy the fear. This has worked really well this year, some of my biggest winners were BABA, GOOGL, UNH and NKE. I buy the stock with intentions to hold very long and if the stock pops 30-50% in a short amount of time, I trim half of the allocation (sometimes different amounts depending on the stock's new valuation metrics at that price level it appreciated to) and repurpose it into other value stocks. I stay about 15% cash roughly at many times of the year because I'm constantly rotating through sectors and trimming and adding to positions. Let me know if you want to know more.
There’s growth stocks and there’s GARP. Anyone who doesn’t know the difference should stay in total index funds
Equities can be liquidated. I just stick to GARP stocks with dividends. F, EIX, and a couple ETFs that also pay around 6% a year.
Right now I see AMZN, GOOGL, META as solid core long term plays. Big moats, strong cash flow, continuing to invest in AI / cloud. Outside of FAANG-type names, I like AVGO, NVDA, and maybe some GARP names like V or MA. Valuations are high, so I’d maybe scale in rather than all at once.
RKLB could crush his performance. Google is a solid GARP play. I doubt MSFT will grow at a fast pace with the current valuation. In MSFT I’m happy with 12-15% annualized returns.
It is departing what I would have called GARP here for sure, but its a fine growth stock still imo
But you also have to look at the price you're paying for the company, I have companies in Europe that trade a 9xP/FCF while growing +10% per year... I like to buy GARP and low PE businesses even if they're not the best quality. I've been outperforming the spx for a while now
100% agree, its silly too since this is /r stocks not /r index funds, my portfolio is bright green today since it is heavy smid cap GARP
Ive liked them as a GARP-Y name to trade around
CFA Charterholder, GARP FRM, National Practice lead in a valuation practice and I do well on general themes (generally when to move to growth, value, bonds of different duration, intl, small cap vs large cap) but cannot time movements precisely. Retail investor psychology is something I am trying to understand better = behavioral economics. I have always been comfortable with pigs getting fat and hogs getting slaughtered. Deep understanding of markets can help with moving allocations around but given public markets there is not a lot of alpha to earn consistently. Other markets...oh yeah...private markets lots of excess returns.
I will always bring up that I think one of the bigger mistakes/risks with buying stocks isn't them going bankrupt (unless you hare buying pure speculation), but price. Apple is a amazing company and I have no doubt even if you buy at these levels, if you hold long enough, you'll be fine. However, when you are buying something over priced, you run that risk of just losing out on returns. If you bought Apple right when it peaked in Dec, you're down about 20% right now. I know a lot of people like to harp on valuation, but that's why I always stick to it and look for GARP.
You have to make that commitment to do the work consistently. Will you keep up with the company, financials, competitive threats, fundamental changes? You also need to understand how to value a company, the bull and bear cases. You can't overreact, but you also can't be completely passive and let a sinking ship tank your performance. I love investing individual stocks, but I also enjoy the work and the pursuit of outperforming the indexes. Besides a normal DCA strategy there are not many companies with attractive valuations, growth, profitability, and business moats that I would rush out to buy. AMZN, GOOGL, and META are probably the 3 that are easiest for me to step up and buy lump sum. I like the long term prospects of several more, but valuations are sky high. AXON, AVGO, NVDA, CRWD, fit somewhere in that category. V, MA, BKNG are solid GARP plays. They still come at a premium, because you are paying up for earnings predictability/stability.
GARP. Growth At Reasonable Price.
Some ideas: - 4imprint Group; Insider conviction, clear moat, cheap GARP, focus on fundamentals - Macfarlane Group; Quality industrial cash flow, low valuation, transparent model - Zimmer Biomet; Durable, cash-generative healthcare leader - Henry Schein; Resilient distributor with recurring revenue - Graphic Packaging; High cash returns, secular trend (paper packaging) - Rexel / Nordea / Buzzi; Multi-billion profit profiles, European mid-cap scale, stable
Hey! Thanks for sharing GARP & GCOW! GARP: Over the past 3 years, it had an **annualized return (AR) of 26.32%** with a **max drawdown (MDD) of 29.87%**, which gives it a **return-to-risk ratio (AR/MDD) of 0.88**. That basically means GARP gave you **88 cents of return for every $1 of drawdown risk.** With that ratio, GARP actually ranks in the **Top 5 out of the 50 ETFs** I analyzed. GCOW: Over the past 3 years, it had an **annualized return (AR) of 14.04%** with a **max drawdown (MDD) of 21.37%**, which gives it a **return-to-risk ratio (AR/MDD) of 0.66**. That basically means GCOW gave you **66 cents of return for every $1 of drawdown risk.** With that ratio, GCOW actually ranks in the **Top 10 out of the 50 ETFs** I analyzed. If you're curious to compare it with others, I put together a full list of the **Top 50 ETFs ranked by return-to-risk** across all 3 timeframes. It’s free to view/download here: [https://finsummary.com/p/new-free-report-top-50-etfs-ranked-by-return-to-risk-1800](https://finsummary.com/p/new-free-report-top-50-etfs-ranked-by-return-to-risk-1800)
I posted about SKYE earlier. Interesting company, small regional airline company. They do like sub contracted flights for bigger airliners. It has its risks, but they keep putting great earning report and the fundamentals aren’t too expensive. More value than GARP imo.
Copart. Its Reasonably priced after the compression on multiple and the company has one of the strongest moat and 25-30 has been the PE range since 2001. The reinvestemenr runway is huge and EV theme will boost the revenue and scalability profile. A high quality business is coming in GARP framework! Hecio is next, they have runway for almost 10-20 years. High quality and moat model. Only concern is current valuations. Any compression on multiples because of panic or overall selling in markets will be a huge opportunity to allocate to them. These 2 are forever stocks and AI cannot damage their moat. It can only strengthen it and make both the models more efficient. Plus both have a very high irreplaceability profile and moat structure are built over 20-30 years and cannot be replicated.
their P/E got downsized - SHOP and INTU are valued like GARP names
I think screening is still one of the best ways to find stocks in general. One of the keys to screening is you need to come up with your own idea/parameters of what you think a great business is. I'm personally a GARPY investor, I like growth at a good price. Pure value vesting is too boring for me and I think price is usually something that can hurt your future returns. If you buy something that is too expensive based off fundamentals, it can cap your upside gains. I always share my jumping off screener: [https://finviz.com/screener.ashx?v=111&f=fa\_epsqoq\_o5%2Cfa\_peg\_u2%2Cfa\_quickratio\_o1%2Cfa\_roi\_o10%2Cfa\_salesqoq\_o10&ft=2&o=industry](https://finviz.com/screener.ashx?v=111&f=fa_epsqoq_o5%2Cfa_peg_u2%2Cfa_quickratio_o1%2Cfa_roi_o10%2Cfa_salesqoq_o10&ft=2&o=industry) I call it jumping off, since I screen almost every day with it. So I look at the same 60ish companies, so sometimes I change up parameters to find new things. The base around it is a PEG under 2. Usually anything under 1 is considered undervalued, but I like still buying things at 1. Going back to the idea of GARP. I don't mind buying fair valued companies if they are still great companies. This is a Peter Lynch thing. From there it's looking at EPS and Sales growth QoQ. Then I look for a ROIC over 10%. ROIC is one of Buffet's favorite things in terms of looking at companies. Just a quick example of how to find some names.
Glad I dont own any MOH today lol, I have had it on my GARP list for a long time but never bought any
Growth at a reasonable price GARP
Global Association of Risk Professionals (GARP)
Fundamentals are all really about the long term. Stock will move around different things in the short term. It's also an outlier, I would say compared to the rest of the market. You can't really rationalizing the market, but the way I see fundamentals is that shows a reflection of the price and value of what you are buying. I'm not really a value guy, but more of a GARP investor. I don't even look at PE's, since I don't mind buying a company with a high PE if they are also growing EPS just as fast. I think some of the biggest risk for investors is over paying and having to sit around to get gains in the name. Like to the flipside, you can look at Apple. Apple is probably not going to go bankrupt in our life time, but when looking at the fundamentals, it was an expensive stock. People who bought Apple in the the 240-250's are going to have to wait around a lot longer to get gains on their investment, compared to people who buy at better valuations. That's just how I see it.
I like AMD as a GARP. Is it going to rocket and 10x like some other higher risk bets, probably not. But as a position to buy and hold it seems like a long term winner
That will be me - I am an Self-Employed Investment Manager | Fundamental Analysis | Portfolio Management | Valuation | Risk Management where: ● The family equities investment portfolio compounded at 10.98% CAGR VS 7.83% CAGR for the Vanguard Total World Stock Index Fund (VT) ETF for the time period from 15 February 2021 to 15 February 2025. ● Family investment portfolio Sharpe Ratio of 0.299, Sortino Ratio of 0.463 ● Weighted-Average Portfolio P/E: 22.1X and Family Portfolio Beta is 0.892 VS VT Beta of 1.000. ● Additional Risk-Adjusted Metrics since 2022: ROMAD(R/D) of 0.25 VS Vanguard Total World Stock Index Fund ETF (VT) since 2022: ROMAD(R/D) of 0.22. ● Family Portfolio Overall Financial Metrics: Average 5-Year ROIC Including Everything except REITs & INDEX ETF= 19.881% Average 5-Year ROIC for WCAFP Subset= 23.665% Average 5-Year ROA Including Everything except REITs & INDEX ETF= 12.561% Average 5-Year ROA for WCAFP Subset= 15.216% ● Portfolio Sector Weightage: Communication Services = 23.74% Financials = 20.03% Consumer Discretionary = 18.1% Consumer Staples = 15.78% Information Technology = 9.97% Healthcare = 6.29% Industrials = 2.03% Real Estate = 1.39% Energy = 1.08% Materials = 1.03% Utilities = 0.55% ● Portfolio Region Weightage: North America = 48.3% Asia Emerging = 38.84% Europe Developed = 7.09% Asia Developed = 3.95% Japan =1.82% ● I am currently managing a multiple hundred of thousands SGD investment portfolio (US & Hong Kong & India & Europe Equities, REITs) for my family. The investment portfolio has been designed and implemented with the Vanguard Total World Stock Index Fund ETF (VT) as the intended Benchmark since inception. ● Employing investment strategy of buying Wonderful Companies at Fair Prices (WCAFP) originated by Billionaire Charlie Munger which is similar to Terry Smith’s Quality Investing and GARP Investing. Minority of positions in the equity investment portfolio comprise of deep value stocks selected after due diligence. ● Remuneration signed agreement with my family largely based on Buffett Partnership Limited Remuneration Agreement
And ChatGPT: Your thinking is solid, and your lean toward Alphabet is supported by both valuation and diversification. Here's a breakdown with context for each pick based on long-term potential, valuation, and current narrative: --- 1. Alphabet (GOOGL) — Most Compelling Value Valuation: At a P/E of ~18, Alphabet is trading well below its 5- and 10-year averages (~25–30). That's a historically cheap multiple for a company with strong fundamentals. Growth Catalysts: AI monetization through Gemini (enterprise + consumer). YouTube resilience (and Shorts growth). Google Cloud now profitable and gaining share. Waymo and DeepMind offer optionality. Risks: Search and ad market changes from AI disruption (especially competition from OpenAI/Microsoft). But those threats appear priced in. Verdict: Arguably the best GARP (growth at a reasonable price) play of the three right now. --- 2. Amazon (AMZN) — Deep Value Play With Operating Leverage Valuation: P/E around 32 sounds high until you consider that margins are just starting to normalize. On a forward basis (P/E and EV/EBITDA), it looks much cheaper. Growth Drivers: AWS reacceleration. Strong retail logistics network; potential for third-party monetization (Buy with Prime, Fulfillment-as-a-Service). Ads business (especially in Prime Video and retail search) is underappreciated. Risks: Thin margins in retail, possible consumer slowdown, regulatory scrutiny. Verdict: Possibly the most upside if margins continue improving. Volatile, but very investable long term. --- 3. Apple (AAPL) — A Hold, Not a Buy Valuation: P/E around 32 is near decade highs, and it's difficult to argue for multiple expansion. Growth Narrative: Slowing iPhone and hardware refresh cycle. Services growth (App Store, Apple Music, iCloud) is solid but not explosive. Vision Pro and AI features are still early-stage bets. Risks: China exposure, lack of a new breakthrough product in the short term. Verdict: Still a strong company, but less appealing at this valuation unless you expect a major AI-driven re-rating. --- Conclusion Alphabet: Best blend of value + future optionality. Solid pick to start buying now. Amazon: High-upside pick for those with patience and belief in margin recovery. Apple: Great business, but valuation doesn’t scream bargain. Your instincts align with the data. Starting with Alphabet and watching Amazon closely is a smart move.
who;s got some GARP names to share with the class?
FIEM and MPTI are both pretty similar with a lot of revenue coming from satellite components. KRMN just went IPO a few months ago, but really haven't heard anyone mention them. Just both are expensive from a fundamental standpoint, that is what I mean about not being my style. I'm not really a value investor as much as a GARP one. I don't mind stock that look expensive, as long as the PEG makes sense, since that also looks at EPS growth and not just PE ratio. Both of them are just really expensive names, so I'm not worried about them going bankrupt as much as just over paying for them and not getting a return on my investment.
● The family equities investment portfolio compounded at 10.98% CAGR VS 7.83% CAGR for the Vanguard Total World Stock Index Fund (VT) ETF for the time period from 15 February 2021 to 15 February 2025. ● Family investment portfolio Sharpe Ratio of 0.538, Sortino Ratio of 0.955 ● Additional Risk-Adjusted Metrics since 2022: ROMAD(R/D) of 0.25 VS Vanguard Total World Stock Index Fund ETF (VT) since 2022: ROMAD(R/D) of 0.22. Weighted-Average Portfolio P/E: 27.5x and Family Portfolio Beta is 0.889 VS VT Beta of 1.000 ● Family Portfolio Overall Financial Metrics= AVG. 5 Year ROIC Including Everything except REITs & INDEX ETF: 19.881% AVG. 5 Year ROIC for WCAFP Subset: 23.665% AVG. 5 Year ROA Including Everything except REITs & INDEX ETF: 12.561% AVG. 5 Year ROA for WCAFP Subset: 15.216% ● Portfolio Sector Weightage: Communication Services 24.21% Consumer Discretionary 19.34% Financials 20.04% Consumer Staples 14.91% Information Technology 10.76% Healthcare 5.19% Industrials 1.9% Real Estate 1.38% Energy 0.95% Materials 0.87% Utilities 0.44% ● I am currently managing a multiple hundred of thousands SGD investment portfolio (US & Hong Kong & India & Europe Equities, REITs) for my family. The investment portfolio has been designed and implemented with the Vanguard Total World Stock Index Fund ETF (VT) as the intended Benchmark since inception. ● Employing investment strategy of buying Wonderful Companies at Fair Prices (WCAFP) originated by Billionaire Charlie Munger which is similar to Terry Smith’s Quality Investing and GARP Investing. Minority of positions in the equity investment portfolio comprise of deep value stocks selected after due diligence. ● Remuneration signed agreement with my family largely based on Buffett Partnership Limited Remuneration Agreement
This is known as "Growth At a Reasonable Price" (GARP). Not a new concept! But good luck finding anything that meets the "reasonable price" part, even after the recent selloffs. Most of the US market is still crazy overvalued.
Agree with most everything here and never like buying stocks when average PE of SPY was 29 over modern average of 20 or so. Granted, stuff can go up to even further into bubble territory in the short run, but I m a dividend and value investor who hates overpaying for growth. Have a good chunk in money market, waiting on crash to pick up quality companies with GARP or free cash flow. Only minor quibble would be on higher rated IG bonds like the recent A rated JP bonds or Deutsche bonds at 6%+ and callable in a year or two. While banks can fail, the damage would be too great to allow large banks to fail (like the last time) even though people disagreed with it. The govt made money on it and corporations didn’t lose assets above FDIC insurance as well as individuals. All investments come with some risk, but A rated bonds at these rates are ones that I ll sprinkle in. I agree with you on global ex US being more attractive than the U.S. now. However, with another 20% drop, that could change. For now, I like the drop in India and see them as a potential winner if Chinese tariffs stick and fact that services are not being affected by the tariffs, which is a big win for service based economies like India.
I found it funny how one of his recommendations was invest in a GARP etf but that garp ETF has like 40-45% weighting of mag 7
GARP stock, 30% growth in international, long base
That's why I like idea of GARP over just value. I don't mind paying a premium if the company is a quality company or I only try to invest in things that are either growing revenue or at least increasing margins and EPS. I still think it's bullish for a company to be able to make more money even if the revenue is flat.
$OPRA has been literally a straight line up since I bought, rarely happens to me. I bought thinking it looked cheap, very GARP-y, and also the various happening in USA makes me think their in app VPN services might have sold well last Q... pretty dumb thesis to work off of
Interesting. Yeah, was really surprised to see FOX putting up such good numbers. It's got some momentum too, stock is up like 50% on the 6M and 70% on 1Y. Especially since everyone focuses on how expensive the market is, actually isn't the worse GARPY name out there. It's more of a value stock than even GARP at these levels.
First of all, past performance doesn’t mean anything going forward. However, over the past 10 years, IGM has averaged 20% in returns. GARP has consistently beaten VOO over the years. GARP is rebalanced quarterly. GARP will move expensive stocks out of the ETF and they’ll bring in stocks that are fairly valued. I’m not able to answer how much you should invest monthly. That’s totally up to you! You’ll need to work out a personal monthly budget in order to come to amount. Good luck!
Someone behind on your investments? First of all, I’d get rid of the extra spending and invest that money. Plan out how much more you can add to your investments per week, month etc… I’d then consider placing that money into something like GARP and IGM as an example. Do your research on anything that you invest into. You know that you have the right portfolio makeup when you can sleep well at night. Good luck with your decision!
GARP mostly, valuation is undemanding, good dividend, fundamentals are sound. Risks are chinese ownership structure and Google % of revenue
Take a look at iShares GARP etf if you are considering SCHG
Rookie advice. If you’re investing in GARP you want a 4 or 5 bagger. Let your winners ride.
They are expanding into Europe where they want a larger percentage of vehicles to be non polluting. Thus, Europe is willing to pay more for the batteries and so as they sell more in Europe the profit margins are increasing. I like profitable growth. MVST is a GARP stock!
You're talking about the distinction between operating cash flow and net profit. I'm saying the way net profit has been calculated for AMZN is incorrect. I'll reference to the Uniform Accounting Financial Reporting Standards (UAFRS) book on this topic: >Under Generally Accepted Accounting Principles (GAAP), firms are required to expense R&D in the year spent. For many firms, this leads to extensive volatility in profit and return calculations, and to an inadequate measure of asset or invested capital. This doubly impacts return on asset calculations, and not consistently so, thereby creating wildly different calculations of economic profit. >R&D is very often not stable from year to year, and this creates material and directionally different changes in profit measures. Many companies in the technology and healthcare sectors succumb to this problem. In the Consumer Discretionary space, R&D expense has been growing at +8% a year over the past 10 years, but with a 25% standard deviation in growth rates. While Technology firms have seen R&D grow at 10% a year the past decade, we measure a 7% standard deviation among growth rates. This issue is material in many other industries such as in the Healthcare, Industrials, Consumer Discretionary, and Energy sectors. >**Without capitalizing R&D, a firm’s earnings can be materially understated because the traditional calculation of net income does not recognize the firm's material investments in R&D as part of its operating investments. This violates one of the core principles of accounting, where expenses should be recognized in the period when the related revenue is incurred. R&D investment is an investment in the long-term cash flow generation of the company, and as such should be capitalized, not expensed. Moreover, the incorrect deduction of R&D investments as expenses makes it near impossible to objectively compare the firm to its peers and even to its own historical performance.** >**The solution is to consistently capitalize R&D over a fixed period of years across an industry group and include that in the asset base.** R&D expense adjustments must be capitalized based on assumed estimated life of R&D and adjusted for inflation using GDP Deflator factor. The capitalized R&D would be amortized over the same set of years, effectively smoothing the R&D expense into adjusted earnings. Finally, the capitalized R&D would be carried net of accumulated amortization of R&D, allowing for far better Adjusted Return on Assets (ROA’) measures of profitability. And this is not the only problem with AMZN's accounting over the years. Capitalized operating leases, stock options compensation adjustments, etc. have all contributed to understating AZMN's profitability. When Buffett (more accurately, his portfolio manager Todd Combs/Ted Weschler) bought an initial stake of $860 million in 2019, people questioned whether he had turned senile for abandoning his value investment philosophy. Publicly AMZN was trading around 70x P/E at that point. But his accounting team knew better than the naysayers: AMZN's real valuation was around 28x. It was a GARP stock with high growth and they arbitraged the distortion in financial reporting. Over the next two years, the underlying price almost converged perfectly with the real EPS - leading to the stock more than doubling before the everything bubble crashed.
Hi, No simple answer to this one. Your first step could be to define your overall strategy in allocating resources (i.e. do you really want to pick stock ? How much will it weight on your overall allocation etc.). Stock screeners are great , but you have to define some criteria first or your style : growth ; quality (margins, ROE, FCF, debt) ; value (a difficult one)… You can also check on well-known funds positions close to your style or interests (Berkshire of course ; Fundsmith ; Giverny … for quality / value & GARP ; Ark innovation for growth … but I’m not a fan of this lady 😁). The goal is not to replicate but to find ideas and do your own analysis. After all, u do not know in real time when & why they enter/exit … and how it fits in their portfolio. Read books (Ben Graham ; Peter Lynch ; Terry Smith …). I posted the following on a similar question last year, but please note I am no expert ; I’m just amazed & impressed that young people take interest in stock analysis (a fascinating world to me know but I’m a late beginner) : Books. For example Peter Lynch’s One up on Wall Street is a good one (even if the stocks mentioned are from the 1970’s and 1980’s). It gives a sense of fundamentals. If I try to summarize and actualize, hoping I’m not betraying: Check debt, free cash flow and operational margin. A company with cash has less chance to get bankrupt or dilute your shares, especially when money is expensive. Diversify sectors (tech ; health ; energy ; food etc.). When comparing margins and FCF, compare companies from the same sector. Pick some big strong leaders and main ETFs to mitigate risks ; and pick just a few of growing smaller businesses for performance. Avoid specialized ETF for now, more expensive, except if you have a clear conviction. Keep track of main trends (aging population ; climate change ; AI …) Look around on emerging consumers habits. Wishing you the best in your investments ! And please note that, as you are young, you have one powerful tool on your side : time.
Which tickers are those value/GARP plays? I own SE up 200% and the reason I haven't sold is I think SE upside is still higher than getting into like Oil stocks or some other value sectors.
Agreed 100%. Difficult to short momentum though so guess we just have to wait. Not like there aren’t any prudent GARP or value plays out there Guess the discussion is over though because post was removed for being “low effort”. Ironic.
Won’t touch Danish tax treatments, but for the “growth” part of a portfolio, maybe the old GARP approach (“growth at a reasonable price”) mimicking the top stocks of a growth index or iShares new top 20 ETF holdings eventually in their proportion. Then there’s Berkshire b shares in the latter .. not sure how Denmark would treat those plus what happens when Warren Buffet passes? Maybe look to replicate his top picks for the “value”-ish proportion of your eventual portfolio? Mostly “Americana” stocks but also seeing some Mitsubishi, Matsui, etc.. Some are repeated like Apple, but that may not be a bad thing.
I generally agree with you, but I like to keep slivers of degeneracy where I really like the underlying and think it has potential. But the vast majority of my holdings are more GARP/value
Solid GARP imo, last Q was solid, valuation is not too demanding and their SMB offerings seem to be well accepted. Reduced immigration to USA would be my one concern I suppose, but its probably to early to be worried about anything like that
GARP SAAS at 5% fcf yield, lot of $100k ACV customers with decent NRR, concerns are on growth re-accelerating and MSFT competition atm which I am willing to see how it plays out at this valuation.
Since the August lows It's transitioned from a temporary value play to a GARP stock. According to my due diligence, APP starts transitioning to "overvalued" territory around $170.
look up some GARP funds if you are feeling lucky. Not to mention some amount in equal weighted S&P. Buying nvidia after it goes below the 200 day and then emerges above it is not the worst idea either, but you would have tax risk day trading that so hardcore.
> It's an interesting point. For what it's worth, I don't think of FNV as a deal, per say. Just a really solid longer-term company that's got a few potential catalysts. I guess my stance is based on the question, "*Why buy a gold stock over holding physical gold?*" The metal has no counterparty risk and no exogenous threats can depreciate its value. You'll never have a Victoria Gold situation where your investment is wiped out by one bad day or a legal decision in its jurisdiction. Since gold as an asset fluctuates so violently throughout the decades, the companies are not stable long-term investments. The big ones have regularly lost 70%-90% of their stock value at the nadir of cycles and stayed there for years. There are two main justifications: * Arbitrage between the current price and its current worth/future potential. According to whatever personal thesis you have regarding gold's future price, the disparity should widen appropriately. At heart it's value investing. * The passive leverage inherent in a gold company's operations. For the right companies, a 20% rise in gold's value can result in 3x profit margins and 4x FCF. With that philosophy, you're treating it as a growth company. With the exception of Agnico Eagle and Northern Star, the big companies don't fit the GARP profile and they're way too expensive to be value plays. > However, most of those have run by the looks of their charts. Still not badly priced though.... RGLD is around 16x P/E with a projected 50% EPS increase next year. With its main projects coming online, SAND's EPS will triple in 2025 and compress the multiple down to 8-9x. I think they have a lot of room to run, and they're not even the best in their field.
He was the one that taught Buffett about GARP rather than just cigar butt investing. One of BRK's best ideas was getting into EVs and that was all Charlie. Some interesting quotes: * "The low-hanging fruit is now gone, you have to find the big thing before it gets big." * "There's way more smart people doing this than when I started and far more competitive. This means you have to be willing to fish in different ponds."
I am more of a GARP investor, so I'd like to have a look at that stock if you share. In return, you may read my investment thesis post on Amphastar AMPH. If BAQSIMI acquisition is successful, I expect a significant growth in revenue and net income.
I lean more towards GARP investing rather than value or dividend investing, so I find healthcare mega caps less appealing. While small caps carry higher risk, what are your thoughts on mid-cap biotechnology and pharmaceutical stocks?
I am more of a GARP than value or dividend investor; so I agree that Healthcare mega caps are not attractive. Small caps are risky - but what about biotechnology and pharmaceutical mid-caps? You are right, though, must be selective with stock picking...
Nice with the returns. I personally would want more than that after 5 years though as a projection of 5 years specifically for me being like greater than 20% per year especially invested in growth focus. Since growth stocks can easily give you high returns if u r willing to tolerate the risk. I can only suggest looking into QQQM for greater returns since it is growth index etf. But I personally invest majority in Growth at reasonable price (GARP investing) of stocks As a quality and growth investor
A few issues i see: 1. "Have growth potential" tends to clash with "pay dividends" The former tending to be more agressive and latter more defensive. You can have best of both worlds with a GARP strategy but your holdings lean differently than what i would expect from that 2. You are REALLY concentrated. If you are fine with severe portfolio volatility you would experience and are very convinced in your investment thesis would be fine, but i personally wouldnt have any holdings over 5-6% of your equity portfolio 3. In addition to single stock concentration i think you are way overweight on certain sectors. 4. I am less than convinced you understand the business models of the above companies, understand their valuation and understand their growth potential and or ability to continue paying dividends.
Have you looked at SPGP? It tracks the SP 500 GARP index, "growth at a reasonable price." Primarily focuses on companies with low PEG ratios. Might be more you're style.
A rate cut by 0.25% would normally move the whole market by +4% to +5%. Now, I am not exactly sure how much of that is already priced in this time (large outflows from bond markets haven't happened yet to my knowledge? Although REITs are already up). This gives me an upper limit that the market could rally up to 25% over the next year due to interest rate cuts, my conservative estimate is it will be more like half of that. Add 4% return to normal growth (stuff like weaker labour market, automation , innovation and lower commodity prices that helps economic expansion), and +15% is my best guess here, +/-3%. Expect more rotation from tech to dividend stocks, then maybe GARP catches up later.
By no means an expert, I'm just software engineer. However, screening has helped, because it allows me to define the parameters of what I look for and use that as a jumping off point to research. Like I like to think of macro theories of things that I think will have good tailwinds, then start to find stocks in my screener that fit my macro theories. A few things that will probably help is just research what each fundamental parameters means and then come up with what you think is a good business. You can also look up famous investors and see what they did/looked for. Peter Lynch, the former Fidelity Fund manager with one of the best track records in mutual fund history, popularized the GARP style of investing when he was at the helm of the Magellan fund. Lynch would often look for growth companies benefiting from a market trend. Oftentimes, these stocks looked expensive when being looked at from a standard valuation multiple such as the price-to-earnings ratio, but ended up being cheap relative to their growth. [https://www.nasdaq.com/articles/growth-investing-with-a-value-twist](https://www.nasdaq.com/articles/growth-investing-with-a-value-twist) >To better analyze growth companies, Lynch used the PEG ratio, which is the price-to-earnings ratio divided by the firm’s growth rate. This was one of Lynch’s favorite stock investing criteria; here's how it works: >Assume we are comparing two different stocks, and both have a price-to-earnings ratio of 30. On the surface, they may look the same but now let’s look at the growth rates. Let's say Company A is growing earnings at 40% while Company B is growing earnings at 15%. Company A has a PEG (price-to-earnings to growth rate) of 0.75 (30 divided by 40 equals 0.75) while Company B has a PEG of 2.0 (30 divided by 15 equals 2). >The lower the PEG, the more attractive the company is relative to its growth rate. For Lynch, a PEG of 1 or less was considered very good. >Lynch even went a step further, and for those companies that paid a dividend and were considered slow growers, he would adjust the PEG since dividend yields are an important driver of the total return of slower-growing companies. In these cases, the dividend yield is added to the growth rate in the denominator to get the yield-adjusted PEG ratio. >Still, like anything in investing, the PEG ratio is not the end-all and be-all of all valuation and growth measures. And as Lynch espoused in his books and articles, the PEG is best used along with other fundamental investment criteria and is only part of the equation in finding winning stocks.
I used to use PE as a metric, but honestly, I care less about PE now and worry more about the PEG. [https://www.investopedia.com/terms/p/pegratio.asp](https://www.investopedia.com/terms/p/pegratio.asp) It just takes earnings growth rate into account, so a company could have a high pe, but if their eps is growing really fast too, then I don't spending more for a company. I guess my style is more of just growth at a responsible price or GARP. I don't really do like deep value, but just think about getting the best price for a great company. So I set my PEG usually under 2 or 3. Just depends, since sometimes I like to get more companies, something less. After that, I like companies that offer a high return on capital. So I usually set that to be above either 5% or 10%. Again, just kind of change it up from time to time. Usually by the time I'm done screening, I have like 100 companies. I also prefer companies with a cash on hand compared to debt, so I do the quick ratio over 1. This is a bit conservative, but in theory, I just think companies that know how to keep a good book of business usually have better management teams. Not everyone would agree with this, but that's what's what cool about screening, you get to decide on the parameters of what you want in a company. So it ends up something like this: [https://finviz.com/screener.ashx?v=111&f=fa\_peg\_u2,fa\_quickratio\_o1,fa\_roi\_o10&ft=2](https://finviz.com/screener.ashx?v=111&f=fa_peg_u2,fa_quickratio_o1,fa_roi_o10&ft=2) From there, I then start to tweak thing, like where I'll look for companies sales growth QoQ is over 10% and EPS growth over 10%: [https://finviz.com/screener.ashx?v=111&f=fa\_epsqoq\_o10,fa\_peg\_u2,fa\_quickratio\_o1,fa\_roi\_o10,fa\_salesqoq\_o10&ft=2](https://finviz.com/screener.ashx?v=111&f=fa_epsqoq_o10,fa_peg_u2,fa_quickratio_o1,fa_roi_o10,fa_salesqoq_o10&ft=2) That gets you a list of 49 companies that are aren't too expensive that are seeing fast growing quarters. From there you can start researching.