Misfit Alpha

Exploring the world of overlooked investments. Why some of the greatest investments get ignored; why we spend so much time on the bad; and everything in-between

[Misfit Alpha @misfit_alpha]

"There is an epidemic failure within the financial media to understand what is best for buy-and-hold investors.
This leads people making portfolio decisions to misjudge their investments and underperform"
https://t.co/2WyyxAWF3e

[Misfit Alpha @misfit_alpha]

https://t.co/BfXFwrffBb

[Misfit Alpha @misfit_alpha]

The 2024 IPO market was... surprisingly lucrative.

I wrote about 20 IPO companies last year. Here's what I got right, what I got wrong, and the lessons going into the 2025 IPO market

(link below)

[Misfit Alpha @misfit_alpha]

Even great businesses make silly capital allocation decisions. One of the more common forms of allocation malfeasance: Buybacks.

By and large, Amphenol $APH has been great at capital allocation, so why buy back shares at 40x earnings?

https://t.co/HtLLwtLFDn

[Misfit Alpha @misfit_alpha]

Automotive manufacturers $F & $GM get the lion's share of financial media attention despite deplorable long-term returns.

And yet, there is a cornucopia of great businesses on the periphery of autos that are fantastic investments. $DORM is one of them.
https://t.co/9INCXEaYts

[Misfit Alpha @misfit_alpha]

Does anyone else find it strange that many spinoffs end up being better investments than the parent company?

TopBuild $BLD was spun out of $MAS almost a decade ago, and its stock has run laps around both the broader market and its former parent.

https://t.co/I2M9bffooE

[Misfit Alpha @misfit_alpha]

@CCM_Brett Harold Hamm’s ex-wife. Divorced him at the absolute peak of the shale oil & gas mania.

[Misfit Alpha @misfit_alpha]

There are just some stocks we can't analyze dispassionately. As much as I want to look at $KLC without bias, I struggle to turn parent brain off.

Any stocks like this for you?
https://t.co/suk7ALGhMi

[Misfit Alpha @misfit_alpha]

Everyone wants great long-term returns. Unfortunately, investrors don't look in some great places to find them

$RUSHA has produced a 16% CAGR since its IPO (3000%+) and yet almost no one follows North America's largest commercial truck dealership.

https://t.co/Ef9lOcHHGX

[Misfit Alpha @misfit_alpha]

@HighyieldHarry A toaster specifically designed to go in a Frank Lloyd Wright designed house

[Misfit Alpha @misfit_alpha]

Several net lease REITs have performed spectacularly over the long haul, but most became market-beating stocks because of their early performance.

FrontView REIT $FVR can be the next great net lease retail REIT if it can do this one thing.

https://t.co/8W6fvqGghG

[Misfit Alpha @misfit_alpha]

Community & regional banks have been a source of outperformance over the long haul, but institutional money rarely touches them.

Case and point: Oak Valley Bancorp $OVLY

Individuals (including me) need to pay more attention to the Oak Valley's.
https://t.co/zjPddxV0Jk

[Misfit Alpha @misfit_alpha]

It's not often that an industry leader goes public, especially in an established industry like aerospace aftermarket parts and services.

The bones of a good investment are there at $SARO, but PE-backed IPOs always come with caveats.

https://t.co/un87gTf6RW

[Misfit Alpha @misfit_alpha]

Founder-led businesses are viewed as great buy-and-hold investments. Few realize the drawbacks of founders with high ownership.

SEI Investments $SEIC is a great example of insider ownership that does not necessarily work in your best interest.

https://t.co/ipB5mBihri

[Misfit Alpha @misfit_alpha]

IPO land has been quiet for the past few months (blank check acquisition companies excluded), but there are a few companies going public this week that are at least real businesses.

One of them $GRDN, looks kinda interesting

https://t.co/XJQWi1PKUl

[Misfit Alpha @misfit_alpha]

Is there an effective way to analyze whether a company will succeed after a leadership transition? $CIGI investors may want to start taking the question seriously.

https://t.co/ne2Odb33kj

[Misfit Alpha @misfit_alpha]

@timothyhliu5 A simpler argument against

Russian citizens using the platform is a temporary tailwind for both Kazakh economy & company. That will go away once the war is over and Russian banks & businesses get access to global markets again.

Maybe not short worthy, but enough to sit it out

[Misfit Alpha @misfit_alpha]

@IFB_podcast [whispers from a dark corner]

…free cash flow per share

[Misfit Alpha @misfit_alpha]

Peter Lynch heaps loads of praise on "disagreeable" companies. The ones doing the dirty, gross, and unsavory jobs we don't want to think about.

$JBT falls squarely into that category

https://t.co/s03DffEI1z

[Misfit Alpha @misfit_alpha]

It’s the small moment like @jasonzweigwsj sharing his thoughts on how to write that keep me sticking around whatever we’re calling this site these days

[Jason Zweig @jasonzweigwsj]

https://t.co/EKxtqWmi9F

[Jason Zweig @jasonzweigwsj]

https://t.co/EKxtqWmi9F