10 Comments

Long KLAC.

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Appreciated this. Great to look back, and great to see the quick summaries of what you like in your new favourites. Will be interesting to look back in a year.

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Thanks for the feedback. Next year, I’ll definitely track the performance of my 2025 picks, along with my 2024 picks, as these selections are meant to stand the test of time

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I suggest you to investigate:

KLSE Stock Exchange: Infoline Tec Group

Compare its ROIC performance ratio to your stocks.

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GPA = Gross Profit / Total Asset, GPM and NPM.

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Thanks for the suggestion, I will take a look!

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Appreciate all your effort, and there is definately some food for thought in your report. Personally, I will stick with GRAB for 2025.

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Interesting. I don't know the company very well, I will take a look at it. If they continue to increase their FCF it can be really interesting indeed (even though stock-based compensation is very high...)

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I prefer Adjusted Net Profit compared to FCF.

Warrent Buffet himself abandoned the academic FCF calculation, as it too volatile causing uncertainly too high.

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Book 39:

Download link:

https://stockbit.com/post/16880888

FASB was right: Earnings beat cash flows when predicting future cash flows

Ray Ball† Valeri Nikolaev‡

December 2020

Comments:

FCF is high in volatility and uncertainty.

Better Approach:

Owner's Earnings

= Adjusted Net Profit - Maintenance Category Capital Expenditure

Maintenance Category Capital Expenditure

=

| CAPEX | this year, in cash flow investing act statement

-

[

( Equipments + Right-of-use assets + Depreciations of Equipments & Depreciations of Right-of-use assets) this year, in BS

-

( Equipments + Right-of-use assets + Depreciations of Equipments & Depreciations of Right-of-use assets) last year, in BS

]

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