Elevance Health: Much Cheaper Than UNH, Yet No Drama

Core Insights - The investment strategy focuses on acquiring strong businesses when they are undervalued, emphasizing the importance of quality and price [1] - The portfolio has evolved through various industries, including technology, banking, and emerging markets, with a current emphasis on high-quality businesses [1] - The investment philosophy is influenced by notable investors and CEOs, highlighting the significance of learning from industry leaders [1] Investment Focus - The current focus is on large technology companies with extensive user bases and content libraries, recognizing the potential for cross-selling opportunities [1] - Valuation is primarily based on EBIT and R&D levels, reflecting a belief in the potential of certain R&D investments [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 [1] - The investor believes that the knowledge gained in recent years will enable future outperformance of the market [1] Portfolio Management Philosophy - The approach to stock recommendations is unconventional, advocating for a "Strong Buy" threshold for exceptional businesses, with everything else categorized as "Strong Sell" to free up capital [1] - A "Hold" position may be initiated for high-quality businesses if the pricing is not favorable [1]