Inderesin kahvihuone (Osa 10)

[VPKe]

On stock picking in general. It is not an end in itself for me to follow and buy small companies, let alone penny stocks. As my portfolio grows, I would rather emphasize stable, growing dividend machines, but I am still occasionally drawn toward the small-cap side.

I look for percentage gains rather than absolute size. Size and market position provide a certain security, but it is easier for a small player to grow bigger than for a large one to grow even larger. At least in terms of growth rate, there can be a significant difference, and that is the most decisive factor in the stock market.

KH Group has been under some level of observation over the years, but I haven’t found that ultimate gold nugget (or silver, excuse me) that would be enough to properly spark my interest. By background, the company is an investment or development company, which are usually classified as slightly shunned in the stock market. This is generally due to the messy nature of their operations. The cycles and lifecycles of acquired operations may point in different directions, and at worst, this eats up profits internally. Furthermore, businesses are bought and sold such that sometimes revenue swells to massive proportions, while other times the shell is empty, containing mostly the parent company’s personnel. Well, in KH’s case, we haven’t seen a complete hollowing out, but examples can be found among companies in the sector.

At its best, a conglomerate or development company can be an excellent investment, but many things have to click, and the investor must endure pain for a long time. For example, Revenio.

I am reluctant to share tips regarding anything related to investing. Just as I don’t give advice in other areas of life. To truly provide advice, one would need to know more about the other person than just their initials. Goals, risk tolerance, uncertainty, portfolio size, life expectancy. These all affect how each individual can and should approach the market. The world is full of both excellent and terrible investment advice. Just take your pick. Usually, it’s enough to read a handful of books and read those same ones over and over again. I have no philosopher’s stone or great secret. It is worth listening to everyone, but believing no one. Everyone lives with their own decisions alone.

[Martingale]

@Salvelinus

It’s pointless to pre-judge this as a scam before the facts; they seem to strongly believe in their cause. At least I wouldn’t make a fool of myself globally for no reason just for the sake of publicity.

Somehow this reminded me of an example from the ice hockey world, where you can end up in the spotlight with nothing. There was massive hype on the discussion forums until…

If you know, you know.

[Sijoittaja-alokas]

Here are the world’s largest asset management companies; especially these top players are quite massive.

https://x.com/TheDealTrader_/status/2009989524148117958

[Sijoittaja-alokas]

Minja has been on the podium quite a bit lately.

Minja Korhonen taas palkintokorokkeelle – Ylen asiantuntija hehkutti...

[CitizenJ]

@Sijoittaja-alokas

BNP Paribas would likely belong on the list now after the AXA acquisition.

Amundi and Pimco are on the list twice, in a way. Amundi is a subsidiary of Credit Agricole and Pimco of Allianz.

[Sijoittaja-alokas]

S&P 500 capex is growing nicely, while buybacks have stalled.

https://x.com/MikeZaccardi/status/2010331517357056021

[Wallet_Nahlroos]

@vilkar

That ownership structure is indeed very complex and I was also wondering about it a bit over in the coffee room.

The company’s name could actually be updated to…

Verge of inttelego Motorcycles

[Winston1]

@Buunari

In connection with a generation shift, there is no money to pay inheritance tax

What’s the deal with the idea that a company is even supposed to continue operating with the same owner family in the background from one generation to the next? I understand that people want to leave as much inheritance as possible for their descendants, and I’m not claiming that the family shouldn’t be allowed to continue… But in my opinion, from the company’s own perspective, it is not necessary for the same family to continue the company’s operations decade after decade, as there are plenty of good owners to be found outside the company who are capable of continuing operations just as well as the previous owners, or even better.

[Hapzu]

I’ll only buy that kind of electric bike once it can be bought with OneCoins

#OffTheGrid

[Salvelinus]

Back in the day, Copernicus was excommunicated by the church for developing the theory of heliocentrism, and according to legend, the discovery of gravity required an apple falling on Newton’s head; it doesn’t take much, I suppose, if you happen to realize something revolutionary (Donut Lab comparison)

[Wallet_Buffet_Omahan]

@Salvelinus

legend has it that an apple fell on Newton

So, all it takes is the formation of a Newton and for an apple to happen to fall from a tree onto this very mind at just the right time by chance. Happens all the time.

[Verneri_Pulkkinen]

@Pohjolan_Eka

Some people even believed in Wincapita and some still do, so this belief in this promised invisible gigawatt-scale factory, the location of which is known only to a few initiated into the Donut mystery, shouldn’t be very surprising. There are always those who are ready to listen and be mesmerized by utopian visions, as long as one proclaims their case with enough confidence. Because of this phenomenon, we have world religions in the first place, even though those stories are obviously pure products of the imagination without any basis in reality.

The human mind’s refusal to admit it was wrong is an incredibly powerful force in the universe. This is why scams work so well, once you first get the victim hooked: the victim will build their own chains, cages, and stocks.

On the Paris stock exchange in the early 1920s, Tsarist-era Russian debt securities were still traded in the hope that the Bolshevik regime would collapse and the Tsar’s relatives would return to Russia, honoring the debts. Considering the chaos of the time, perhaps not a completely brainless idea, but still a fine historical example of how changing times and facts sink slowly into people’s consciousness.

[Salvelinus]

It’s certainly bold how Finnish modesty has been cast aside and achievements are being boasted about just like Trump.

[Sijoittaja16]

Perhaps the company has already become part of a larger family. The operating methods of family businesses may also differ from other companies, and there may be a desire for the current practices or culture to continue. Or the children’s careers might be considered, or the family’s status as an industrial dynasty, and so on. Many different reasons come to mind.

Edit. Personally, I am a strong supporter of inheritance tax, referring to the original post.

[Suppilovahvero]

There might be a new model coming from Saab, the Saab 700. Currently, the share price is around 690 SEK.

Hopefully we won’t return to the 96 or 99 eras. 900 and 9000 are more interesting

A hilarious middle-aged guy played with AI again and asked it to make a fictional Inderes-310 version (target price 310 SEK).

[Pohjolan_Eka]

So I should practice my focus

[Geologiopiskelija]

https://forum.inderes.com/t/kurssien-ja-niiden-muutosten-kyselyt-kauhistelut-ja-hehkuttelut-osa-4/61881/3513?u=geologiopiskelija

It doesn’t matter what they push out of the factory, it’s sh*t compared to cars from the 80s/90s, which are the best real cars instead of these new boring or outright horrible electric gadget boxes; this applies to all car brands because of today’s regulations .

Regards, a traditional Finn living (permanently) outside the Helsinki metropolitan area, former “moped kid” / advocate for old cars .

[Suppilovahvero]

Yes and no. Older cars definitely have style and character, BUT… I’ve driven 100,000 km in my Hybrid Prius now with almost no worries at all. It sure is hideous, but extremely reliable and fuel-efficient. That Gen2 has a legendary reputation. They’re used a lot as taxis abroad, and 500,000–1,000,000 km isn’t at all exceptional, even with the original battery pack.

Whereas our Saab 9-3 has definitely needed an insane amount of repairs. Probably several grand gone But a Saab is a Saab. It has style and attitude. And yes, a sickness too. And it was passed down from father to son. Now it’s got massive sound systems and tuning here and there.

But modern cars are, for the most part, soulless gadgets with all their lane-change gizmos. Blah. Tastelessly boring.

[Fundamies]

@Buunari

I think that’s a good perspective on why abolishing inheritance tax would be important. For a family-owned company, growth is a challenge because the company’s value also increases. In the event of a generational handover, there is no way to afford the inheritance tax other than by selling shares, which dilutes the family’s majority ownership.

I’m under the impression that, on average, the performance of family-owned companies declines following generational handovers. In that sense, from a national economic perspective, it might be quite desirable for family ownership to be diluted. I could be wrong in this assumption, but I wouldn’t automatically view that as an argument in favor of abolishing inheritance tax.