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The Broadcom Investment Thesis
At the end of last year, I was thinking about what topics might dominate the year 2024. And I came to the conclusion that AI will most likely be the hot topic, after which I wrote bullish articles on
Broadcom Has Changed Significantly In The Last Year
Summary
- Broadcom's strategic VMWare acquisition has reduced dependency on major clients like Apple and diversified revenue.
- AVGO's critical role in Internet and AI infrastructure, with 99% of Internet traffic passing through at least one Broadcom chip, underscores its market strength.
- The near-term success and potential long-term value of the VMWare deal validate Broadcom's effective M&A strategy.
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.
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