The Path to Uber Returns
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, the biggest news in the markets was:
US Government Shuts Down Because The Political Party That You Personally Like Is 100% Correct And The Other Side Are A Bunch Of Dumb Dumbs
Yes, the (insert political party of your choosing) is being totally reasonable and wants to keep our wonderful country going, but the evil scumbags of the (insert the opposite political party) are being totally nonsensical.
The ONLY possible course of action from the senior citizen, career politician millionaires in Congress:
And our Supreme Leader is quite broken up about all of this…
But stocks aren’t upset…
With the market up at all-time highs, some might think it is difficult to find opportunities.
When I scour the jungles of the exchanges for the most undervalued great business to put capital into…
I’m basically looking for three things:
An exceptional business model
Continuing growth
A reasonable valuation
How hard is it to find all three of those things?
Not very.
Basically as easy as calling an Uber.
The Path to Uber Returns
What is the business model?
In a word, the:
Platform
No, not that platform.
“Uber’s unique advantage is the power of our platform.”
They were first, they do it the best, and it is very hard for competitors to just whip up a new platform and get everyone on it.
No, not that platform.
Think Autobots and cybercabs and autonomous vehicles are the future?
Well, what platform do you think those companies are going to partner with?
No, not that platform.
And how is the growth?
Been rapidly expanding since the pandemic. Don’t believe me? Well, look at these colorful charts that fill up so much space.
And how is the valuation?
Reasonable.
A modest projected P/E ratio for 2026 of 27.
Not as cheap as it was in May when I was talking about it on this platform.
No, not that platform.
But reasonable.
So what is the path to Uber returns? Well, that is as simple as calling an UBER.
Final Thought
"If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." – Warren Buffett
