toughcall

Thank you. In my opinion, European defense companies excel at product development and will undoubtedly generate sales. However, they are often bloated and/or lack focus on cash flow and returns. I would like to be enthusiastic about both Thales and Saab, but their operational inefficiency makes them unattractive investments. Thales struggles with inflation, a lack of real pricing power (perhaps?), and an enormous headcount. Despite a significant tailwind, returns are currently poor and will likely remain so.

A peace settlement in Ukraine could initially impact defense stock prices. However, assuming Europe's rearmament plans proceed, with potential defense spending reaching 5% of GDP, which company offers the best long-term investment potential over the next ten years, given Europe's defense requirements and the competitive environment? Focusing solely on exposure, not current/future valuation.

Interesting company. What metrics do you look at for valuation? Looks pricy looking at FCF?

$LVMH - Sentiment is very bearish. It is doom talk in the comment sections on X and forums. If the rich get purged, we are all in bigger trouble than our LVMH stocks getting hammered. Sure, in the short run there will be trouble in China. In a couple of years, we won't even remember the tariff talks. And the growth in India and other upcoming nations will be spectacular. Great opportunity to buy a wonderful company. Can it dip 20% more? Sure, and I will gobble all the way down.

FRPH, new position for me.

Nuclear is really on the rise. I just cant find a way to get a broad exposure to this trend. Are there any good companies in the sector?