Texas Instruments: Long-Term Strategy As A Competitive Advantage

Nov. 08, 2021 1:45 PM ETTexas Instruments Incorporated (TXN)20 Comments

Summary

  • Texas Instruments is among the semiconductor companies where valuation is still linked to profitability.
  • The company's unique positioning results in sustainable competitive advantages and steady value creation.
  • Within the light of the recent market melt-up, Texas Instruments still trades at reasonable levels that allow for attractive returns.

Silicon Wafers and Microcircuits with Automation system control application

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Investment thesis

Texas Instruments (NASDAQ:TXN) is among the high quality and long-term-oriented companies in the semiconductors space, that also have sustainable competitive advantages on its back. However, this is not what is currently rewarded with a high valuation

This article was written by

Vladimir Dimitrov, CFA profile picture
4.33K Followers
Investment strategy for those seeking steady and above-market returns

Vladimir Dimitrov is a former strategy consultant with a professional focus on business and intangible assets valuation. His professional background lies in solving complex business problems through the lens of overall business strategy and various valuation and financial modelling techniques.

Vladimir has also been exploring the concept of value investing and in particular finding companies with sustainable competitive advantages that also trade below their intrinsic value. He supplements his bottom-up approach with a more holistic view of the markets through factor investing techniques.

Vladimir made his first investment in farmland right out of high school in 2007 and consequently started investing through mutual funds at the bottom of the market in 2009. In the years that followed he has been focused on developing his own investment philosophy and has been managing a concentrated equity portfolio since 2016. Vladimir is LSE Alumni and a CFA charterholder . 

All of Vladimir's content published on Seeking Alpha is for informational purposes only and should not be construed as investment advice. Always consult a licensed investment professional before making investment decisions.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Please do your own due diligence and consult with your financial advisor, if you have one, before making any investment decisions. The author is not acting in an investment adviser capacity. The author's opinions expressed herein address only select aspects of potential investment in securities of the companies mentioned and cannot be a substitute for comprehensive investment analysis. The author recommends that potential and existing investors conduct thorough investment research of their own, including detailed review of the companies' SEC filings. Any opinions or estimates constitute the author's best judgment as of the date of publication and are subject to change without notice.

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