VSS: Solid Fundamentals, But Stretched Valuation

Core Insights - The article critiques a small-cap ETF, highlighting that the quality of its holdings is subpar, with many stocks exhibiting negative earnings and cash flows, and long-term returns underperforming compared to mid-cap and large-cap stocks [1] Group 1: Investment Strategy - The investor, Philipp, has nearly 20 years of experience and adopts a global approach to identify undervalued companies that provide a significant margin of safety, leading to attractive dividend yields and returns [1] - Philipp focuses on companies he thoroughly understands and can reasonably assess for future growth potential, rather than limiting investments to specific sectors or countries [1] - A particular enthusiasm is noted for companies with a solid earnings track record trading at less than 8 times free cash flow, which is reflected in his username "8xfreecash" [1]