Investing visuals - Recap week 22

Visual of the week

This week, I'd to talk a bit about the tendency of investors to be laser focused on stock prices. I have done it myself when I first started investing. Checking my broker every day, hoping to see the price go up, and feeling let down when it did not. Or worse, letting it affect my mood when some of my stocks dropped 5% or more in a single session.

I think the stock market is the only place where people do not want to buy when there is a discount, but get excited and buy when prices go up.

Stock price is what you see, the business underneath is what you get.

It is like an iceberg, where most of it sits below the surface. When you buy a stock, you are buying free cash flow, leadership, company culture, a balance sheet, valuation, competitive advantage, and more.

In the long term, that is what really moves a stock price up or down. Short term sentiment can overshoot in either direction, but over time, the stock price follows the fundamentals.

Getting familiar with fundamentals has helped me a lot throughout my investing journey. It allows me to put price movements into perspective. When fundamentals remain strong but the stock drops, it becomes an opportunity. Nowadays, I get excited when a strong business sells off and the risk/reward get increasingly attractive as the stock goes down. I get more value for my money.

In short, don't focus on the stock price. Focus on what sits beneath the surface.

New stock analysis

Articles

As you can see, there are not that many visuals I worked on this week. That is because I primarily focused on a deep dive on my latest position, which I believe has the potential to become a multibagger, although it will probably be a volatile ride.

The deep dive covers all the important parts of the business, the good and the bad, along with 10+ visuals to tell the story. I published it for subscribers first to keep the stock under the radar for a little while longer 👇

A new position: my asymmetric bet on edge data center energy

On this page Introduction Over the past month, I have been looking to increase my exposure to the energy sector. Why? It is quickly becoming a major constraint, as energy demand is outpacing supply by large margins. The grid simply cannot keep up. But many energy companies have already re

Investing VisualsJan (Investing Visuals)

Up next

Portfolio update: I am currently up +46% year to date and +322% over the past 3 years. I made some significant changes over the past weeks, and this portfolio update will cover all of them. One of these changes is closing my Duolingo position at a steep loss to rotate it into a much better opportunity.

Closing remarks

On June 4th I will be cycling Alpe d’Huez to raise money for charity, so I will not be able to create a lot of new content in the week ahead. My girlfriend and I just arrived in France for the event. After Alpe d’Huez we will travel to Italy for a two week vacation break. Knowing myself, I will probably keep creating visuals and working on articles, but expect it to be a little lighter in the weeks ahead.

After that, back in full swing!
That is it for now. Thanks for reading and have a wonderful day.

Cheers,
~ Jan

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