Hi! Don't you think that having strict screen criteria such as EV/NOPAT less than 15 or ROCE greater than 15% is too restrictive? I know that the point is to kill ideas quickly, but I think looking at quarterly releases is better. By looking at quarterly releases you can quickly see if there was any great change from one quarter to another.
I don’t think so. Sure ultimately you want to achieve a certain IRR, and everything else doesn’t matter. They are endless ways to achieve that, but they’re also endless companies. For me it would more like “skimming quarterly releases, evaluating CAN this company earn a decent ROCE and is it cheap. Whether it’s 15% or maybe only 10% but it’s is super cheap it doesn’t need to be super strict. But I think it’s a good guidance.
Hey Sebastian, keep it up with the great work! Always looking forward to your posts and articles. :)
Hi! Don't you think that having strict screen criteria such as EV/NOPAT less than 15 or ROCE greater than 15% is too restrictive? I know that the point is to kill ideas quickly, but I think looking at quarterly releases is better. By looking at quarterly releases you can quickly see if there was any great change from one quarter to another.
I don’t think so. Sure ultimately you want to achieve a certain IRR, and everything else doesn’t matter. They are endless ways to achieve that, but they’re also endless companies. For me it would more like “skimming quarterly releases, evaluating CAN this company earn a decent ROCE and is it cheap. Whether it’s 15% or maybe only 10% but it’s is super cheap it doesn’t need to be super strict. But I think it’s a good guidance.
How did you come across Deufol? I am wonder what your sourcing process was at the time...
A German investor pitched it to me as his best idea for 2023.
But I've come across it before, when I went through every stock listed only in Hamburg.
This is the kind of stuff I am after actually and am currently try to figure a better process to scan for this stuff