Company Overview - ResMed is a medical equipment company based in San Diego, California, originally founded in Australia, specializing in cloud-connectable CPAP machines for obstructive sleep apnea treatment [1] - The company has over 10,000 employees and operates in more than 140 countries, with two primary business units: Sleep and Respiratory Care, and Software as a Service (SaaS) [2] Product and Service Offering - The Sleep and Respiratory Care unit provides industry-leading CPAP machines for various patient needs, from those requiring therapy at night to those needing life-support ventilation [2] - The SaaS unit offers software for durable or home medical equipment, facilitating out-of-hospital care [2][3] Financial Performance - ResMed reported an annual revenue of $4,685 million, with a compound annual growth rate (CAGR) of 13.6% over the last three years [5] - The latest reported gross margin for ResMed was 57.4%, indicating strong profitability from core products and services [6] - The company reported a profit of $1,021 million in the last financial year, reflecting a CAGR of 29.1% compared to three years ago when the profit was $475 million [7] Financial Health - ResMed's current net debt is -$624 million, indicating that the company has more cash than debt, which can be seen as a safety buffer [9] - The debt/equity ratio stands at 18.0%, suggesting that ResMed has more equity than debt, indicating lower leverage [10] - The return on equity (ROE) for ResMed was 22.7% in FY24, demonstrating efficient capital allocation and value generation [11] Valuation Insights - ResMed shares currently have a price-to-sales ratio of 5.38x, below the 5-year average of 8.70x, suggesting that shares are trading at a lower valuation compared to historical averages [12]

Industry Overview - The medical technology (MedTech) industry has evolved into a distinct global sector since the early 1990s, with a market value projected to reach $584 billion by 2025, following seven consecutive years of growth [2] - Future Market Insights Inc estimates the MedTech market at $549 billion in 2025, with expectations to grow to $853 billion by 2035, reflecting a compound annual growth rate (CAGR) of 4.5% over the next decade [3] - Key growth drivers include the integration of artificial intelligence (AI) and digital health solutions, which are enhancing patient care through improved diagnostics and efficiency [4][5] Investment Sentiment - Analysts believe that healthcare, particularly MedTech, will provide significant investment opportunities, especially as investors seek alternatives to the broader tech sector [6][7] - AI is identified as a major catalyst for growth in the MedTech sector, enhancing efficiency across the value chain from research and development to sales [7] Company Highlights ResMed Inc. (NYSE:RMD) - ResMed is recognized as a leading medical technology stock, with a hedge fund holding count of 43 and a projected stock upside of 27.97% [12] - The company reported strong Q2 fiscal 2026 results, with revenue exceeding expectations, particularly in its Masks & Accessories and Devices segments [13] - Analysts have raised price targets for ResMed, reflecting confidence in its improving profitability and strong market performance [14][15] - ResMed specializes in medical devices and digital health solutions for respiratory conditions, including CPAP machines and remote monitoring software [16] Globus Medical Inc. (NYSE:GMED) - Globus Medical is another top medical technology stock, with 46 hedge fund holdings and a stock upside of 26.12% [17] - The company received an upgrade from Needham, which set a price target of $112 following positive preliminary revenue announcements [17] - Analysts expect margin expansion and improved organic revenue growth to enhance earnings expectations for Globus [18][19] - Globus develops medical devices for musculoskeletal disorders, including implantable devices and surgical instruments [22]

Company Overview - ResMed is a $37 billion company that positions itself as a "36-year-old startup" in the sleep and breathing health sector [1] - The company is the leading provider in over 140 countries, holding a market share of 50–60% in sleep apnea devices, including CPAP machines and masks [1] Investment Perspective - The company is focused on identifying undervalued stocks with a strong emphasis on balancing risk and reward [1] - There is a belief that the best investment ideas are often the simplest, and a contrarian approach may yield better results [1]

Company Overview - ResMed is a $37 billion company that positions itself as a "36-year-old startup" in the sleep and breathing health sector [1] - The company is the leading provider in over 140 countries, holding a market share of 50–60% in sleep apnea devices, including CPAP machines and masks [1] Investment Perspective - The company is focused on identifying undervalued stocks with a favorable risk-reward profile, emphasizing limited risks and potential for decent to high upside [1] - The belief is that the best investment ideas are often the simplest, with a contrarian approach being favored [1]

Company Overview - Inspire Medical Systems, Inc. specializes in innovative medical solutions for sleep apnea treatment, particularly known for its Inspire therapy, which serves as an alternative to traditional CPAP machines [1] Stock Performance - The current stock price of INSP is $81.33, reflecting a 2.43% increase or $1.93, with fluctuations between $78.17 and $81.76 throughout the day [4] - Over the past year, INSP has experienced significant volatility, with a high of $203.12 and a low of $70.77 [4] - The company's market capitalization is approximately $2.41 billion, with a trading volume of 1,084,065 shares on the NYSE [4] Analyst Insights - RBC Capital has set a price target of $90 for INSP, indicating a potential upside of approximately 10.66% from the current trading price [2][5] - Baillie Gifford & Co. has reduced its stake in INSP by 2.7%, selling 29,538 shares, leaving them with 1,084,350 shares valued at $80.5 million, which represents about 3.67% of the company [2][5] Institutional Investor Activity - The Texas Permanent School Fund Corp has increased its holdings in INSP by 42.2%, acquiring an additional 11,892 shares, bringing their total to 40,042 shares valued at $5.2 million [3] - Nordea Investment Management AB has entered a new position in INSP, investing approximately $1.6 million during the second quarter [3]

Company Overview - ResMed is a medical equipment company based in San Diego, California, originally founded in Australia, specializing in cloud-connectable CPAP machines for obstructive sleep apnea treatment [2] - The company operates globally with over 10,000 employees and a presence in more than 140 countries, divided into two main business units: Sleep and Respiratory Care, and Software as a Service (SaaS) [3] - ResMed's products include industry-leading CPAP machines and software for durable medical equipment, focusing on out-of-hospital care [3][4] Market Performance - The ASX:RMD share price has decreased by 2.0% since the start of 2025 [1] - The S&P/ASX200 Healthcare Index has returned -4.53% per year over the last 5 years, contrasting with a 5.51% annual return from the broader ASX 200 [5] Revenue Stability - Healthcare spending is considered essential, leading to stable and consistent revenue streams, often referred to as 'sticky' revenue, which remains resilient during economic downturns [6] - Historical performance indicates that healthcare was the best-performing sector during the Global Financial Crisis (GFC) [6] Growth Potential - Global healthcare spending, particularly in the US, is projected to grow significantly, with estimates of 7% annual growth from 2022 to 2027, reaching US$819 billion [7] - Sub-sectors such as healthcare IT and SaaS are expected to see revenue growth exceeding 15% per year from 2024 to 2030, attracting investor interest [8] Ethical Investment Trends - A Morgan Stanley survey indicates that over half of investors plan to increase their allocation to sustainable investments in 2024, positioning healthcare sectors favorably for attracting new capital [9] Valuation Insights - ResMed shares currently have a price-to-sales ratio of 5.08x, below the 5-year average of 8.70x, suggesting that shares may be undervalued or that sales have increased [11]

Core Insights - David Gardner emphasizes a shift in investment strategy from the traditional "buy low, sell high" to "buy high and try not to sell," advocating for long-term holding of quality stocks [3][4] - Successful companies often emerge as leaders in new industries, with examples like Amazon and Netflix demonstrating the importance of being a first-mover [5][7] - Gardner argues that financial metrics alone do not capture the full value of a company, highlighting the significance of management quality, brand strength, and innovation [10][11][12] Investment Strategy - The traditional advice of "buy low, sell high" is criticized for potentially causing investors to miss out on growth opportunities [3] - Gardner's alternative strategy encourages buying high-quality stocks even at premium prices, with the expectation of holding them long-term [4] - The focus should be on the company's potential and leadership in emerging markets rather than solely on price fluctuations [5][7] Characteristics of Winning Stocks - Great stocks typically dominate their respective markets and are often first-movers in emerging industries [5][6] - Companies like Nvidia exemplify how late investments can still yield significant returns, as evidenced by a 48% increase in stock price over the past year [7] - Innovative companies can be identified even after they have established themselves, allowing for profitable investments [9] Valuation Perspective - Gardner suggests that being labeled as "overvalued" can indicate a stock's potential as a Rule Breaker investment [10] - Important attributes such as management quality and brand value are not reflected in traditional financial metrics, making them crucial for investment decisions [11][12] - Investors should not dismiss high-valuation stocks if other indicators suggest they are strong buys [12]

Group 1: Company Overview - Mineral Resources Limited (MIN) is a diversified Australian mining company focused on lithium and iron ore extraction in Western Australia [1][2] - ResMed (RMD) specializes in medical equipment, particularly cloud-connectable CPAP machines for treating obstructive sleep apnea, and is headquartered in San Diego, California [3][4] Group 2: Business Operations - MIN provides mining and engineering services through its subsidiary, CSI Mining Services, which operates across Western Australia, Queensland, and the Northern Territory [2] - ResMed operates two main business units: Sleep and Respiratory Care, and Software as a Service (SaaS), offering both medical equipment and software solutions for out-of-hospital care [4][5] Group 3: Financial Performance - MIN has experienced a revenue growth rate of 12.2% per year since 2021, reaching $5,278 million in FY24, but net profit has decreased from $1,270 million to $125 million, with a reported ROE of 3.2% [6][7] - RMD has seen a revenue growth rate of 13.6% per year since 2021, achieving $4,685 million in FY24, with net profit increasing from $475 million to $1,021 million, and a reported ROE of 22.7% [7]

Company Overview - ResMed is a medical equipment company based in San Diego, California, originally founded in Australia, specializing in cloud-connectable CPAP machines for obstructive sleep apnea treatment [2] - The company operates globally with over 10,000 employees and a presence in more than 140 countries, divided into two primary business units: Sleep and Respiratory Care, and Software as a Service (SaaS) [3] - Netwealth is a wealth management software business that provides a platform for financial planners, with over 140,000 account holders and $88 billion in funds under administration as of 2024 [5] Business Model and Services - ResMed's Sleep and Respiratory Care unit offers industry-leading CPAP machines, catering to a wide range of patients from those needing nightly therapy to those requiring life-support ventilation [3] - The SaaS unit provides software for durable or home medical equipment, enhancing out-of-hospital care [3][4] - Netwealth's platform allows users to manage investments, track performance, and access financial reports through a user-friendly interface [6] Financial Performance and Valuation - ResMed shares have a current price-sales ratio of 5.63x, significantly lower than its 5-year average of 8.70x, indicating potential undervaluation or increased sales [8] - In contrast, Netwealth shares trade at a price-sales ratio of 30.23x, above its 5-year average of 23.72x, suggesting a higher valuation relative to historical performance [9]