UnitedHealth: Reputation, Complexity, And Regulatory Risks Worth 13x Earnings

Group 1 - The investment strategy focuses on acquiring strong businesses when they are undervalued, emphasizing a concentrated portfolio in sectors like telecom, banking, and pipelines [1] - The current investment approach includes a diverse range of industries such as payments, regional banking, international equities, REITs, and technology, with a particular interest in high-quality businesses [1] - The analysis highlights the importance of learning from successful investors and CEOs, indicating a preference for companies with large user bases and extensive content libraries, which present cross-selling opportunities [1] Group 2 - The valuation method prioritizes EBIT plus R&D investments, reflecting a belief in the potential of certain R&D initiatives [1] - The annual return from February 2019 to October 2024 is reported at 11.4% CAGR, which is below the market's 15.18% CAGR, but there is confidence in future outperformance due to expanded knowledge [1] - The investment philosophy rejects traditional "Buy" and "Sell" recommendations, advocating for a focus on exceptional businesses at fair prices, with a strong emphasis on maintaining a low portfolio turnover [1]