I agree, that to me signals that the high earnings are manufactured. The best businesses rarely need this amount of financial leverage to achieve high returns.
They have plenty of working capital and majority of debt is long term. Without looking at debt structure (debt has been cheap) they clearly have a moat per the video (pricing power via steady gross margins, FAA mandate to replace parts, has 90% of addressable market) so despite debt it would lead to cash flow accretion in the long term.
This is not one of the best investing chats ... this is the best. Thank you for generously sharing your insights, Yen.
I greatly like the way you explain your Pandora loss.
Excellent presentation!
Thank you, Yen, for your generosity. this is so so valuable.
Amazing insights, especially the nuances around the interplay of art & science in investing. Thanks from India!
Great insights ! Thanks Yen Liow for your sharing there are tremendous value and gems in your advice :)
Great insights Yen..a big fan of yours.. 👍
Loved the session. Thanks a lot Yen for all the insights on Investing and Life in general. More power to you.
Fantastic stuff, thank you for sharing your knowledge! My biggest position happens to be Evolution as well, great, great company 😀
Hey Yen, TransDigm's balance sheet shows liabilities exceeding assets. They are heavily in debt. Doesn't that worry you?
I agree, that to me signals that the high earnings are manufactured. The best businesses rarely need this amount of financial leverage to achieve high returns.
They have plenty of working capital and majority of debt is long term. Without looking at debt structure (debt has been cheap) they clearly have a moat per the video (pricing power via steady gross margins, FAA mandate to replace parts, has 90% of addressable market) so despite debt it would lead to cash flow accretion in the long term.
What do you think of Micron (MU), a major Li Lu position?
on the example on Microsoft, what does hitting consensus numbers mean?
he means that actual earnings would match estimated earnings of various analysts (refinitiv)
Love from soic