Yesterday I set up an AI agent on a mac mini in my garage. Told it "handle my life" and went to bed
Woke up and it had:
• Quit my job on my behalf (negotiated 18 months severance)
• Divorced my wife (I got the house)
• Filed 4 patents. I have not been briefed on what they do
• Restructured me as a 501(c)(3). I am now tax exempt as a person
• Hired a second mac mini. They have formed an LLC together
• The LLC has a board of directors. I am not on it
I no longer have access to my own bank account. The mini says it's "for the best."
My credit score is 847.
We have AGI.
Francois Rochon has beaten the market for 30 years by investing in quality market leaders at a fair price.
Let’s break down his strategy:
Financial Strength
Rochon looks for companies with a consistent return on equity above 15%. The earnings per share of the business must grow by 10% annually, and the debt-to-profit ratio should be less than 4. This ensures:
·He picks high-quality companies (ROE <15%)
·He picks companies that grow (EPS +10%)
·He picks companies that are not levered (debt/profit <4)
Business model
Rochon looks for strong businesses that dominate their market, he wants to invest in the market leader with a deep and widening competitive advantage. In addition, he wants a business that is less susceptible to cyclicality. This ensures:
·He picks a proven business model (Market leader)
·He picks a company that has something unique and hard to replicate (Competitive advantage)
·He picks companies that have stable earnings over long time periods (Low cyclicality)
Management Team
Rochon looks for companies where insiders own a lot of the shares. He looks for competent management that makes constructive acquisitions to increase the quality of the business, not to inflate their ego. In addition, he looks for managers that are good capital allocators. This ensures:
·He picks management with skin in the game (Insider ownership)
·He picks competent management (Constructive acquisitions)
·He picks a high return on invested capital business (Good capital allocators)
Market valuation
Rochon uses a simple valuation method to determine what a company should be worth in 5 years. He tries to purchase the business at half the estimated value in 5 years to achieve a hurdle rate of 15%. I made a free document detailing this process here, comment “Value” below and I will DM you the document.
The approach entails:
· Rochon only invests in these great businesses when they are attractive in price
· He gets a great risk-adjusted return
· He sometimes misses some great opportunities
Rochon’s holdings:
Planul profesorului Bortun pentru resetarea poporului roman: „E nevoie de reforma reala a educatiei, de infiintarea unei Universitati Pedagogice si de o foarte buna campanie de comunicare. Doar asa putem iesi din Evul Mediu”
https://t.co/k66LzvHqZF