FluentInQuality

Quality-growth investing in small- & mid-caps most analysts ignore. One framework. The few businesses worth owning for a decade.

[FluentInQuality @FluentInQuality]

AI is disrupting $ADBE

That's what the bears say. But it's far from the truth. It's a cash machine that's going to give investors 100% on their investment.

Here's why $ADBE will loudly continue to dominate the creative industry: 🧵👇🏻

[FluentInQuality @FluentInQuality]

$ASML at 36x EV/EBIT for a monster monopoly in EUV and 85% market share in DUV?

Cheap? Expensive? Or fairly valued?

[FluentInQuality @FluentInQuality]

@MarginOfRisk404 True! Tough industry…

[FluentInQuality @FluentInQuality]

$PFE and $NVO are prime examples of why I stay away from pharma.

[FluentInQuality @FluentInQuality]

@valuationlabco 👏🏻👏🏻

[FluentInQuality @FluentInQuality]

"An investor who has all the answers doesn't even understand all the questions."

— Sir John Templeton

[FluentInQuality @FluentInQuality]

$ADYEN is a business I own.

Hasn't done much good for me since buying in.

Meanwhile the market keeps running.
Every day I hold, the opportunity cost grows.

And yet.

The business hasn't changed.
The moat hasn't changed.
The long-term thesis hasn't changed.

Price and value diverge all the time.

That's the whole game.

The hardest part of long-term investing isn't finding great businesses.

It's sitting on your hands while the scoreboard makes you feel stupid.

[FluentInQuality @FluentInQuality]

"So you sold your $MSFT position in 2022 because you were 'nervous'?"

"Yes."

"And then bought back in at the top because you felt 'confident'?"

"That's correct."

"So you successfully bought high and sold low on purpose?"

''Exactly, Dave.''

[FluentInQuality @FluentInQuality]

Once a surgeon trains on Stryker's instruments, they almost never leave.

Not because they have to stay.

Because switching means retraining.
New tools. New sales rep. New muscle memory.

For a surgeon doing 60 knee replacements a year?
That's a risk nobody wants to take.

The result?

Surgeons stick with their preferred vendor for 15+ years.
Using that vendor for 95% of their procedures.

Stryker's knee market share has sat around 22% for a decade.
Barely moved.

That's not a coincidence.

That's a moat with a 15-year lock-in built into human behavior.
5,800 patents. A legal team that enforces every single one.

A sales rep in the operating room for every procedure.

$SYK doesn't just sell implants.

It embeds itself into how surgeons work
and then becomes impossible to remove.

[FluentInQuality @FluentInQuality]

Why is $AAPL up ~20% over the last three months?

Haven't heard a single soul being bullish on $AAPL

[FluentInQuality @FluentInQuality]

$GOOGL is spending like never before.

CapEx: $109B in the last twelve months.
Up 733% since 2017.

The bears call it reckless.

But look at the other bar.

Operating cash flow: $174B. LTM.
The core machine keeps compounding regardless.

$GOOGL is funding the future with the present.
AI infrastructure. Data centers. Cloud capacity.

Most companies have to choose between investing and generating cash.
Alphabet doesn't have that problem.

That's what a real moat looks like.

[FluentInQuality @FluentInQuality]

$NU has no branches.

Zero. Not a single one.

Yet they generate 2x the revenue per employee of traditional Brazilian banks.

Let that sink in.

They've already converted 60% of Brazilian adults into customers. The home market is tapped out.

So what's next?
Mexico. Colombia. Two countries with massive unbanked populations and legacy banks charging ridiculous fees.

$NU has the playbook. They've proven it works.
Now they're just copy-pasting it across Latin America.

Most people still see this as a Brazilian fintech story.

It's not.

This is a Latin American empire in the making.
$NU is just getting started.

[FluentInQuality @FluentInQuality]

"It's not supposed to be easy. Anyone who finds it easy is stupid."

— Charlie Munger

[FluentInQuality @FluentInQuality]

$ZETA is up ~50% since this tweet.

And this is only the BEGINNING for $ZETA.

Bookmark it. Hold me accountable.

[FluentInQuality @FluentInQuality]

The AI boom is minting new winners every quarter.

$SNDK. $MU. Storage demand through the roof.

Revenue up. Margins expanding. Headlines glowing.
But here's what long-term investors should ask.

Is this a moat, or a tide?

NAND and DRAM are commodities.
When the tide goes out, pricing collapses.

It has happened before. It will happen again.
The boom is real.

The beneficiaries are real.
But a rising tide is not a business model.

For traders, there's a trade here.
For long-term investors building durable wealth?

The uncertainty isn't a footnote.
It's the whole thesis.

[FluentInQuality @FluentInQuality]

@ibuycompounders Ahhh, yes!!

[FluentInQuality @FluentInQuality]

Here are 4 portfolios. Which one would you choose for the next 15 years?

Portfolio 1️⃣
Nvidia $NVDA
Microsoft $MSFT
Meta $META
Palantir $PLTR
AMD $AMD

Portfolio 2️⃣
Visa $V
Coca-Cola $KO
Johnson & Johnson $JNJ
Waste Management $WM
Fastenal $FAST

Portfolio 3️⃣
Apple $AAPL
Amazon $AMZN
Mastercard $MA
Salesforce $CRM
Uber $UBER

Portfolio 4️⃣
Berkshire Hathaway $BRK.B
Nike $NKE
Novo Nordisk $NVO
PayPal $PYPL
Disney $DIS

[FluentInQuality @FluentInQuality]

SaaS is back in fashion.

$ADBE up ~12% in five days.

But let's not confuse price action with fundamentals.

This is the same business the market priced for zero growth weeks ago.

The AI narrative shifted.
The sentiment shifted.
The stock shifted.

The underlying thesis hasn't changed.

Mr. Market got pessimistic.
Now he's getting optimistic.

Neither version was right.

The patient investor just watches and waits for the fat pitch.

[FluentInQuality @FluentInQuality]

@ibuycompounders What would make it perfect? 👀

[FluentInQuality @FluentInQuality]

"The biggest investing errors come not from factors that are informational or analytical, but from those that are psychological."

— Howard Marks

[FluentInQuality @FluentInQuality]

@ASiddiqui99 What business in particular piques your interest?

[FluentInQuality @FluentInQuality]

@joinyellowbrick @amitisinvesting @BryzonX @alc2022 @Minnvestor @WealthyReadings @stpioc Thank you for sharing! :)