10 Comments
User's avatar
Sempiterno Investments's avatar

Congrats for take such a difficult decision! I think technology companies with new investments in IA has a lot to lose and not so much to win. IMO this sector is so complicated and I cannot see any big winner from now to 20 years in future.

Expand full comment
Heavy Moat Investments's avatar

Thank you! Absolutely, it's too hard for me. Much easier to own something like Copart over the long-term.

Expand full comment
mavix's avatar

Looking forward to hear more from you about smaller companies! 🙌🏻

Expand full comment
Heavy Moat Investments's avatar

Will do :) My median EV (weighted for position size) is still pretty large at $253 billion due to my large positions in AMZN, DHR, TXN. I honestly expected it to be lower :D

Expand full comment
Patrick Barber's avatar

I enjoy your articles. Question: on Sonova Holdings, how do you think about them versus their competition - I'm mostly thinking of Demant?? I also own a small position Sonova, but to be honest it's mainly because I am a customer and I like their product, and over a long term duration, there will be increasing demand from boomers for hearing aids. That said, I'm not sure there is much difference in the high end products. Demant picked up the Costco contract, which is nice for them, but I doubt there is much margin there. I do think Sonova is smart to go after the brink & mortar audiologic care business. So maybe mid single digits organic growth cumulatively with slightly better op income growth.

Expand full comment
Heavy Moat Investments's avatar

I don't see a tremendous advantage over Demant, but I see a big player in a market with secular growth. What drew me to Sonova is their ex Danaher Management and focus on Danaher values (Kaizen). It's not the highest conviction position in my portfolio, but I'll see where it brings me.

Expand full comment
Isaac B.'s avatar

Interesting to understand your process of the inverse DCF model

Expand full comment
Heavy Moat Investments's avatar

I'll make a new post about that.

Expand full comment
Ted Levi Toldman's avatar

You have a very interesting point of view. I enjoyed the article.

Expand full comment
Heavy Moat Investments's avatar

Thank you, I'm glad you enjoyed it!

Expand full comment