eric boroian

[eric boroian @eboroian]

“Large gains accrue to investors who identify stocks that will beat expectations...it doesn’t matter if the expectations are for failure or enormous success: if a company can better those expectations, shareholders will reward the company by pushing its share price higher”

[Morgan Housel @morganhousel]

What is the most powerful and consistent law of investing?

[eric boroian @eboroian]

@compoundpapi @GuyTobacco What’s the thesis here?

[eric boroian @eboroian]

@WaterworldCapi1 Thanks! Have you looked at STMicro?

[eric boroian @eboroian]

@partners_road Expectations Investing
Quality Investing
Valuation (Mckinsey)
Pitch the Perfect Investment
Capital Cycle

[eric boroian @eboroian]

@retaox Where is this from? Thanks!

[eric boroian @eboroian]

@ParthenosCap Interested to hear who you think are the most worthwhile reads as well! Thanks!

[eric boroian @eboroian]

@atelicinvest Imo, a reasonably good indication of quality involves taking absolute and relative levels of growth, ROIC and cash conversion, as well as trajectory/second derivative of each. Then also nuanced factors beyond just competitive differentiation such as business model, mix etc.

[eric boroian @eboroian]

@finphysnerd Not involved by am interested to hear what the initial hypothesis was and in what ways these results are a real thesis breaker. Thanks!

[eric boroian @eboroian]

@roojoo3 Interested to hear in what way the business is inflecting up and why? Thanks a lot!

[eric boroian @eboroian]

@calculatedrisk @morganhousel Interesting. Can you please share the research? Thanks!

[eric boroian @eboroian]

@kouroshshafi @andrewrow What are the key parameters in your view? Thanks!

[eric boroian @eboroian]

@thombarf @ClarkSquareCap Interested to hear what the worst case is and what the overhangs are. Thanks!

[eric boroian @eboroian]

@BobEUnlimited Is this a credible potential issue for stocks? Citi Econ Surprise Index has been at elevated and mean reverting levels at the same time as Citi Inflation Surprise Index has been at low and mean reverting levels. If both revert simultaneously = stagflationary vs expectations?

[eric boroian @eboroian]

@WaterworldCapi1 Thanks for posting. I also find this one pretty compelling here. When do you think AI really starts to move the needle, and by how much (i.e positive revisions and perception shift)? Thanks!

[eric boroian @eboroian]

@JerryCap Bakkafrost. Lowest cost base in premium Salmon farming because of location of Faroe Islands (and impact it has on fish health) and vertical integration. Premium price because of size of the fish

[eric boroian @eboroian]

@Chariot_Invest I think the way you define catalyst is important. If it’s a specific event or timing, then I agree. But broadly, valuations don’t change meaningfully unless something changes within a business or sector. Part of our job is to identify these when they aren’t properly anticipated

[eric boroian @eboroian]

@MadsenSouth Specialty chemicals

[eric boroian @eboroian]

@conorsen Why in your opinion?

[eric boroian @eboroian]

@RihardJarc The valuation of a business rarely changes meaningfully unless something fundamentally changes within the company/industry/market

Imo, it wasn’t irrationally valued until Zuck made significant changes on costs, leading to both meaningful earnings revisions & better perception

[eric boroian @eboroian]

@MRatable @NorthernGrowth8 @SouthernValue95 Don’t think this is true. One needs either positive revisions or positive perception change for a stock to work. A ‘cheap’ stock with growing earnings (but already reflected in expectations) and no reason for perception to improve has always had less potentiel to outperform…