Applovin(US:APP) Seeking Alpha·2026-01-05 06:30Core Insights - The article emphasizes the importance of generating alpha through independent investment strategies, focusing on a generalist approach across various sectors with potential for outperforming the S&P 500 [1] Investment Strategy - The investment strategy involves managing a family portfolio primarily through a Self Managed Super Fund, with a typical holding period ranging from a few quarters to multiple years [1] - Comprehensive spreadsheets are maintained to track historical financial data, key metrics, guidance trends, and performance indicators [1] Research Methodology - The research methodology includes monitoring industry news, company filings, and peer valuations, with a focus on understanding the five key drivers of DCF valuation: revenues, costs and margins, cash flow conversion, capex and investments, and interest rates [1] - In cases of significant leadership changes, a deep dive into the new CEO's background and past performance is conducted to assess potential impacts on the company [1] Valuation Approach - The article notes a preference for assessing historical performance and broad outlooks over long-term DCF projections, with reverse DCF analysis used for companies trading at high multiples [1]