Archive - Base Hit Investing

Lincoln's 2nd Inaugural Address; Investing Philosophies and Tribalism

Inspired by Abe Lincoln's succinct delivery, I'm going to publish more short form thoughts from the "ugly first draft" files with the goal of sparking…

Oct 1 •

September 2024

14% FCF Yield + Undervalued Real Estate

I have a contrarian view on the quality of this industry; surprisingly solid ROIC's & consistent FCF generation, plus real estate carried on books at…

Sep 16 •

August 2024

Value Hiding in Plain Sight, a Big Buyback Announcement, and a Quiet Compounder

Some updates on a few of our recent investments, including NRP, DR, and FCNCA, along with some thoughts on great management teams, bargains hiding in…

Aug 20 •

Thoughts on Buffett Selling Apple

His investment decisions are not economic or market predictions, but just a byproduct of the huge size of his portfolio and how few stocks he can buy…

Aug 9 •

July 2024

Walter Schloss, Nifty Fifty, Current Market Valuations and Opportunities

This post is a loose summary of a recurring conversation I've been having with a few friends of mine recently.

Jul 12 •

June 2024

Hospital Owner at a 14% FCF Yield

Owner of high quality assets (39% ROIC, 20 years of consistent FCF) that has recently changed its corporate strategy and capital allocation; now buying…

Jun 6 •

May 2024

Big Tech Capex and Earnings Quality

The capex spending at MSFT, META, GOOG will eclipse $150 billion this year alone. These businesses are much different than they were 5 years ago with…

May 7 •

April 2024

Valuation Update on an Overcapitalized Bank with Buyback Potential

One of my favorite banks that has the opportunity and the excess capital to potentially buy back over 30% of its shares over the next couple years…

Apr 28 •

March 2024

Graham's "Unpopular Large Caps" Part 2: Thoughts on Diversification

Follow up to my post on Graham's still-effective strategy on buying out of favor large caps; Graham's view on diversification and my own thoughts on…

Mar 19 •

NRP's Evolution and Future Distribution Potential

NRP is an example of outstanding shareholder stewardship. Nearing the end of simplification strategy that mgmt laid out in 2015 & successfully…

Mar 11 •

Thoughts on Ben Graham's "Unpopular Large Caps": A Still-Effective Strategy

Graham's view on how large caps can get mispriced, a time arbitrage investment approach that worked for Graham and still works today

Mar 4 •

January 2024

A Value Investor's Bank

Well-run bank with a multi-decade history of compounding earnings and tangible book value per share at 15% per year; trades at 7.6 P/E; well-capitalized…

Jan 31 •

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