PayPal Just Posted Its Worst Quarter Yet, But Now It May Be At Rock Bottom (Rating Upgrade)

Core Viewpoint - 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] Group 1: Investment Strategy - The company manages its portfolio primarily through a Self Managed Super Fund, aiming for a holding period that ranges from a few quarters to multiple years [1] - The investment approach includes building and maintaining spreadsheets that track historical financial data, key metrics, and performance indicators [1] - The company prioritizes assessing a company's delivery and outlook on five key drivers of DCF valuation rather than projecting financials far into the future [1] Group 2: Research Methodology - The research process involves monitoring industry news, reports, and other analysts' coverage, particularly during significant events like CEO changes [1] - The company rarely constructs DCF models for long-term projections, finding more value in understanding current performance and market conditions [1] - In cases of companies with high trading multiples, a reverse DCF analysis is conducted to evaluate implied growth rates [1]