Episode 361 - My Warning To Investors For 2024

Investing Strategy Focuses on High-Quality Companies

The podcast episode discusses the host's investing strategy, which emphasizes buying high-quality companies based on their long-term durable earnings and cash flow growth. Unlike many investors who focus on short-term multiples, the host prioritizes companies with solid business models that can consistently grow earnings above the market. He gives examples of companies like S&P Global, MasterCard, and Intuit that he buys and holds despite trading at higher multiples. The host believes that over time, a strategy centered on quality companies will outperform, as earnings per share growth is a primary driver of stock returns.

Proof of Successful Portfolio Performance

The host examines the performance of his portfolio against the benchmark S&P 500 over the past two years. In 2022, his portfolio outperformed the market by around 2%, even during a down year. In 2023 year-to-date, his portfolio has returned 24% compared to the S&P 500's 20.34%, beating the market by around 4%. The host attributes this outperformance to his investment strategy and the quality companies in his portfolio. He highlights that his portfolio captures both downside protection during market corrections and upside potential during market rallies. However, he issues a warning that past performance is not indicative of future results, and copying his strategy should not be done with the expectation of consistent outperformance every year.

GTA 6 Trailer Release and Potential for Multiple Revenue Streams

The podcast briefly mentions the release of the Grand Theft Auto 6 (GTA 6) trailer, which garnered millions of views within hours. Notably, the host highlights the strategy employed by Take-Two Interactive, the publisher of GTA 6, to double-dip on sales by sequentially releasing the game on different platforms. By initially releasing the game on consoles and later releasing it on PC, the company encourages consumers to purchase the game multiple times, increasing revenue. While the podcast mentions AI being bigger than the internet, it discusses the host's belief that companies indirectly benefiting from AI advancements, such as Intuit, can be more profitable than those considered traditional AI companies. Lastly, the podcast covers Spotify's decision to lay off 1500 employees, noting that the company aims to become leaner and more efficient, leading to increased investor confidence and a positive stock market response.

The Joseph Carlson Show

Episode 361 - My Warning To Investors For 2024

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Quick takeaways

Deep dives

Investing Strategy Focuses on High-Quality Companies

Proof of Successful Portfolio Performance

GTA 6 Trailer Release and Potential for Multiple Revenue Streams

Remember Everything You Learn from Podcasts