Snapshot
My Implied Share Price: $33.10
| Symbol | Price | Weight |
| JTAI | 2.04 | 10.44% |
| Cash | 1.00 | 10.20% |
| AII | 18.67 | 8.62% |
| Stock Options | 1.00 | 2.93% |
| IIPR | 61.48 | 2.86% |
| WEYS | 38.22 | 2.85% |
| PETS | 1.99 | 2.78% |
| ZM | 87.99 | 2.70% |
| WW | 13.34 | 2.67% |
| PINS | 22.13 | 2.16% |
| FLYX | 1.16 | 2.06% |
| LEN | 84.64 | 2.05% |
| EXE | 91.52 | 2.04% |
| NUS | 5.08 | 2.03% |
| UPWK | 8.83 | 2.00% |
| USNA | 21.32 | 1.96% |
| HGBL | 1.20 | 1.95% |
| MKL | 1994.70 | 1.86% |
| FVRR | 10.46 | 1.85% |
| LNC | 41.36 | 1.81% |
| EGAN | 6.41 | 1.76% |
| BBBY | 4.96 | 1.63% |
| JOYY | 73.95 | 1.45% |
| MAT | 14.34 | 1.44% |
| NVO | 48.77 | 1.32% |
| LULU | 114.28 | 1.28% |
| CNC | 63.41 | 1.24% |
| TAYD | 54.23 | 1.21% |
| MOH | 197.55 | 1.10% |
| WMK | 73.36 | 0.96% |
| JBSS | 81.19 | 0.91% |
| VZ | 46.38 | 0.82% |
| BG | 121.53 | 0.79% |
| DRH | 12.85 | 0.79% |
| FLR | 52.19 | 0.78% |
| MED | 9.68 | 0.77% |
| TGT | 136.78 | 0.76% |
| CROX | 134.72 | 0.75% |
| RAVE | 3.13 | 0.74% |
| LYB | 60.32 | 0.73% |
| LYFT | 14.20 | 0.73% |
| CHCI | 14.82 | 0.69% |
| INTC | 92.32 | 0.69% |
| ACN | 146.99 | 0.68% |
| MOV | 36.51 | 0.68% |
| PYPL | 56.15 | 0.68% |
| SBUX | 103.25 | 0.67% |
| AWX | 2.58 | 0.67% |
| VHI | 13.62 | 0.67% |
| UFPI | 87.94 | 0.65% |
| GRAB | 3.31 | 0.65% |
| UBER | 65.94 | 0.61% |
| SITC | 4.38 | 0.61% |
| YALA | 5.18 | 0.60% |
| REI | 1.27 | 0.58% |
| VTSI | 3.18 | 0.58% |
| UNFI | 49.67 | 0.28% |
| DOLE | 14.14 | 0.24% |
Situation
Continuous monitoring and evaluation of holdings.
Response
Small adjustments.
Reflections
This week I have been focusing more on identifying things that will actually make a stock’s market price align to its intrinsic value. Since I sold GTEC I have become more aware of this issue. It’s not just about valuing a business and knowing when it’s undervalued or really cheap. It’s also about understanding how and why the mispricing will be corrected.
I used to assume there would be other professional investors actively valuing stocks and moving money to make the price get aligned. But, lately that has not been the case. With so many index funds, passive investments, and algorithms controlling the markets, value investors are in the minority, particularly with small cap stocks.
I’m realizing even if a stock is super cheap it doesn’t mean the market will correct it. Those stocks can remain super cheap for a long time. If it’s deeply undervalued, I like the business, and I believe there’s a realistic path to a turnaround, I may still buy it. But if I don’t think it’s a quality business, then it’s usually not worth buying, no matter how inexpensive it appears, because the price may never correct.
Most of the businesses that I’m now focused on buying and holding will have the ability to eventually impact its own price, based on profits or management decisions within the business itself. It may be the company itself issuing dividends eventually, or special dividend, or buybacks, or asset sales, mergers, or acquisitions, or other capital allocation decisions. In some cases, simply producing consistent profits can trigger buying from quantitative or algorithmic strategies as the financials improve. As long as it’s a real business operating with profits and not speculating on future opportunities and other people buying at a higher price, as long as it is legit, it would likely be worth buying. However, if I can not realistically come put with a way the company or an outside source will trigger a correction or a catalysis, then it’s usually not worth buying, unless its the rare exception whereas the stock is just too cheap to ignore, even considering I don’t know how it would turnaround. Then I could justify giving it a small allocation of my capital.
Besides that, I only made small adjustments to the portfolio this week, completed a tax last harvesting adjustment for GRAB, and opened a stock option long position in MED to go along with the small position I’m holding. I believe MED is getting too cheap to ignore based on the recent price drop, and a catalyst may be coming with earnings on the way.
Lastly, I want to renew my focus on companies I already own and companies I see personally. R&D doesn’t only happen on the computer researching, but it also includes just living life as a consumer noticing companies in my everyday life, like Peter Lynch said. I want to make this a bigger part of what I do again.