Value_Added

Makes a lot of sense and thanks for sharing.

What in your valuation framework has changed that enabled you to find this as a buy during their dip? Do you look strictly at multiples and adjust your entry price to a higher multiple based on how good the business is? It obviously worked out great for you. I came across QLYS a while back and found it too expensive (at face value based on a quick and dirty valuation without any real due diligence) so I didn’t research further. I added it to my crash list and I plan to begin researching it soon. I love getting insight from others’ methodologies in an attempt to better my framework. I’m relatively new to this so I’m trying to be a sponge and narrow down what works for my brain.

Curious about your exit? I’ve got it on my list to begin research as it seems to be a solid compounder by the numbers. Did the story change or your research find something to deter you? Thanks

I’ve seen your options strategies throughout the forum and I’m not quite up to snuff in understanding them and the pros/cons that come with them. I write puts on stocks I want to own if the adjusted basis is my target buy price or lower (and they have over 15% CAGR for the time my money is tied up). I exit stocks by writing calls at the price I want to exit. Pretty basic I know but it works for my strategy. I’m always open to expanding deeper into options but this is all I feel comfortable with now. Care to explain the above strategy like I’m 5? Not trying to hijack the thread anymore than I’ve done so feel free to instant message me if you’re up for the challenge of helping me understand.

Did you take a look at writing any long term put options? I’ve been eyeing them but still feel it’s a bit expensive at the adjusted cost basis if put the stock. Thought I’d mention it because currently, an ATM put with an expiration in January 24 would yield approximately a 15% CAGR and if you got put the stock, would drop your basis to $372/share. Point being, if you like it at $500/share, $372 offers a much larger margin of safety.

I’d love to see BHE acquire the upcoming spin-off generation business from EXC. It will be a large (largest in U.S?) clean energy portfolio and it will - assuming the proposed legislation gets passed in IL - be guaranteed money for the large nuclear fleet which is largely profitable already.