I had done a bit of scuttbutt research on ISRG about a year or more ago .. spoke to a colleague who used to work there, and also my neighbor who was a urologist. The jury is out on these machines.
As laproscopic surgeries go, they provide a lot of value to doctors but even after so many years and improvements, patients have seen a fair numbe of challenges. Not to mention the cost and only a few hospitals can afford it.
Very true.. but all it takes are a few surgeries with complications for patients to push back on them. My general sense of these businesses is that you cannot buy them in good times, you have to buy when these busineses when they are themselves in the "hospital" so to speak..
Greenblatt's Gotham Capital ran concentrated bets in special situations. Totally different than the Little Book he wrote, which says retail investors can outperform over the long run by buying a huge basket of stocks with high earnings yields, and rebalance periodically. Not disagreeing. Just sayin'... Thank you, and as always, keep up the good work!
On the other hand, The Magic Formulas has proven to work. The issue/hard thing is to blindly follow an algorithm. It’s very hard to pursue when the strategy temporarily underperforms. :)
Facts! The great thing about Magic Formula is it doesn't require analysis. Sure, most of the companies are cheap for a reason, and will never recover. But enough of them will rebound that over time that the strategy will likely outperform. Assuming one strictly follows the formula, buying the entire basket, and rebalancing!
Is Intuitive Surgical a good example of a boring company? Just feels like it might not be..
It's an amazing business. The only thing I don't like about the company is the current valuation level. :)
I had done a bit of scuttbutt research on ISRG about a year or more ago .. spoke to a colleague who used to work there, and also my neighbor who was a urologist. The jury is out on these machines.
As laproscopic surgeries go, they provide a lot of value to doctors but even after so many years and improvements, patients have seen a fair numbe of challenges. Not to mention the cost and only a few hospitals can afford it.
That makes complete sense. The interesting things about hospitals if you ask me is that once they chose a certain product, they almost never switch.
Very true.. but all it takes are a few surgeries with complications for patients to push back on them. My general sense of these businesses is that you cannot buy them in good times, you have to buy when these busineses when they are themselves in the "hospital" so to speak..
Good
Greenblatt's Gotham Capital ran concentrated bets in special situations. Totally different than the Little Book he wrote, which says retail investors can outperform over the long run by buying a huge basket of stocks with high earnings yields, and rebalance periodically. Not disagreeing. Just sayin'... Thank you, and as always, keep up the good work!
Correct, Mark!
On the other hand, The Magic Formulas has proven to work. The issue/hard thing is to blindly follow an algorithm. It’s very hard to pursue when the strategy temporarily underperforms. :)
Facts! The great thing about Magic Formula is it doesn't require analysis. Sure, most of the companies are cheap for a reason, and will never recover. But enough of them will rebound that over time that the strategy will likely outperform. Assuming one strictly follows the formula, buying the entire basket, and rebalancing!