Charles Olu-Alabi
Thesis
On Holding (NYSE:ONON) is a relatively new company in a highly competitive market. Their IPO timing was quite good as they were able to take advantage of high valuations on the stock market and were therefore able
On Holding AG: The Price Has Run Away
Summary
- On Holding is growing quite nicely in a very competitive market and has found its target group.
- But the really expensive valuation is likely to rob investors of future returns, as the stock is massively overvalued by the metrics.
- Nevertheless, the company does have a recognizable brand and could be in a position to do some damage to some of its rivals with some clever marketing of its technology.
My primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for these companies to demonstrate a long-term capability of capital compounding, with a high enough compound annual growth rate to potentially deliver tenfold returns or even greater.My approach is to maintain a long-term perspective on these companies, as I believe this will generate higher returns compared to the market index, in a rapidly evolving investment landscape where short-term holdings are becoming increasingly prevalent.I primarily adopt a conservative investment strategy, but occasionally I may pursue opportunities with a favorable risk-reward ratio where the potential upside is substantial and downside is limited. These ventures are carefully considered and allocated a proportional amount within my portfolio to maintain overall stability.Bachelor's degree in finance and accounting All ideas and articles are provided for informational and educational purposes. Nothing contained herein is investment advice or should be construed as investment advice. All decisions that you make after reading our articles and reports are 100% your responsibility.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NKE either through stock ownership, options, or other derivatives. 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.
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