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Evolution: The Ideal Replacement To British American Tobacco
BATBAT(US:BTI) Seeking Alphaยท2025-06-12 11:18

Core Insights - The investment strategy focuses on acquiring strong businesses when they are undervalued, emphasizing a concentrated portfolio approach in various industries including telecom, banking, and technology [1] - The current emphasis is on high-quality businesses, particularly in the technology sector, which have large user bases and content libraries, highlighting the potential for cross-selling opportunities [1] - The valuation method prioritizes EBIT plus R&D investments, reflecting a belief in the long-term potential of certain R&D initiatives [1] Performance Metrics - The annual return from February 2019 to October 2024 is reported at 11.4% CAGR, which is below the market's 15.18% CAGR during the same period [1] - The investment philosophy aims to minimize portfolio turnover, suggesting that most profits will come from holding existing investments rather than frequent trading [1] Investment Philosophy - The approach does not endorse traditional "Buy" and "Sell" recommendations, instead categorizing stocks into "Strong Buy" and "Strong Sell" based on their valuation relative to exceptional business quality [1] - A "Hold" position may be initiated for high-quality businesses if their pricing is deemed unfavorable, indicating a flexible approach to investment decisions [1]