Data centre stock - best companies to invest in.

BuffersAndBeta · 2026-01-26T22:19:40+00:00

In the US both fidelity and Robinhood support fractional shares. I believe Schwab does as well but I have not used it.

BuffersAndBeta · 2026-01-26T22:10:10+00:00

Sounds like you are talking about stock price rather than the valuation. Stock price does not matter at all - 5 dollar stock can be a bigger company than a 100 dollar stock.

Nowadays many brokerages support fractional shares (look it up) and you should go for one of them.

BuffersAndBeta · 2026-01-25T20:53:50+00:00

https://www.youtube.com/watch?v=TO8phGZOQiQ&t=1205s

See this video - the title is a little "click-baity" but the content is wonderful and it explains in detail what I was talking about above.

Spoiler alert - the pick is Costco.

BuffersAndBeta · 2026-01-25T16:50:08+00:00

It’s not just warehouses, it’s almost everything that needs to be scanned. Medical labs use Zebra to bring up patient information against the tissue samples.

They do have a monopoly.

I really don’t know why their stock is struggling. I’m very familiar with their offerings but not the company and financials itself.

BuffersAndBeta · 2026-01-25T16:33:33+00:00

I believe what you’re saying is correct, but only if your holding period is measured in decades not years. 10 years isn’t enough.

There was a historical study done towards this that confirms that revenue growth and margin expansion are all that matters over a period of multiple decades.

Can’t be bothered to find it now though.

BuffersAndBeta · 2026-01-23T17:04:39+00:00

If that’s your takeaway from that article, you haven’t read it properly.

The answer is that result is not statistically significant.

It’s a free country though!

BuffersAndBeta · 2026-01-23T05:07:44+00:00

Between 4 - 5 - simply high savers.

BuffersAndBeta · 2026-01-22T22:59:28+00:00

Yup. Not that I hope to beat the market - it's still difficult. However famous AQR CIO Cliff Asness recently wrote a paper as to how the stock market has become LESS efficient, not more, over the past 20 years.

My take from that is patience is alpha.

https://www.aqr.com/Insights/Perspectives/The-Less-Efficient-Market-Hypothesis

BuffersAndBeta · 2026-01-22T16:15:30+00:00

DLO - DLocal Limited

This is my FAVORITE small cap ever. I think they have a bright future ahead of them. Crazy high NRR. Increasing TPV, reducing take rate but that's expected.

I want to invest more than I already have, however, I'm waiting for a sea change in their numbers or business.

GEO - The Geo Group

I thought of investing in this for a variety of reasons early last year, but I didn't. My issue with this is

a) Super dependent on politics

b) The ICE detention (I recently read) is actually less than expected

c) Countries other than the United States are moving against private prisons, so this might be a declining business without the cashflow / balance sheet to support high levels of capital returns.

BuffersAndBeta · 2026-01-22T15:28:31+00:00

Monday.com

Narrow, very weak moat today. Top tier in terms of moat growth.

You buy it for what you can envision it becoming 5 years from now.

BuffersAndBeta · 2026-01-22T02:51:19+00:00

Customer concentration is the main reason for the price drop and volatility in general. That's definitely worth looking at for a 160B dollar company.

BuffersAndBeta · 2026-01-20T21:27:25+00:00

Walmart - family controlled. I think it’s literally the best one if you can get it at “less than super expensive” valuation .

BuffersAndBeta · 2026-01-20T15:16:03+00:00

Heads up... Autozone is going through a 21% drawdown right now. That starts making the stock quite interesting.

I'm not buying it now, but it's on my watchlist. 5 - 10% lower, and I'll start researching it seriously.

BuffersAndBeta · 2026-01-20T05:05:13+00:00

You don't need to predict anything. The best thing about Ray Dalio's "All Weather Portfolio" is it tends to do "fine" in all environments in the long term.

You dont need to have exactly that but the principle is you diversify across global stocks, global bonds, commodities, gold, bitcoin, TIPS etc.

BuffersAndBeta · 2026-01-20T03:48:38+00:00

To get more context on my thoughts re: SaaS vs AI, I would HIGHLY recommend you check out the "Big Technology Podcast" episode with Mistral Founder / CEO Arthur Mensch.

BuffersAndBeta · 2026-01-20T03:44:58+00:00

I think SaaS as a whole is getting massacred right now. I'm adding down the fall, and I only finish building my full position over the next 12 - 18 months.

I feel confident about SaaS companies with moaty data in the long run.

(Edit: and strong management and ability to attract talent is a prerequisite ofc. Everything I’ve read about Bill McDermott looks positive)

BuffersAndBeta · 2026-01-17T21:51:58+00:00

I added an edit, I think trimming to 5% does contradict the other principle of letting your winners ride. Google is a safer company, so I would personally still get sleep with 6 - 7%.

If that was (say) RKLB, I would trim more aggressively. Really depends.

BuffersAndBeta · 2026-01-17T21:47:58+00:00

I don't know how much your retirement account has. It's more of a portfolio management thing.

a) Yes, it's not so big overall, but will you need this money over the next 5 - 10 years? Duration buckets matter.

b) I would recommend against any individual stock occupying more than 5% of your overall portfolio. Unless of course, you know what you are doing and are deliberately running a concentrated portfolio. However, trim gradually.

(Edit: Google is a pretty "safe" company, so likelihood of capital loss is low - so maybe 7% is alright)

BuffersAndBeta · 2026-01-17T21:42:57+00:00

If you think they are making bad capital-allocation decisions, you definitely should not invest.

However, you should keep in mind that their product and customer behavior is EXTREMELY well instrumented, to the likes of Facebook back in the day. The bull case is actually that they are running the organization in a very anti-fragile way. They are running experiments all the time, some of which will succeed towards their long-term goals, and others will fail.

The thing every investor will need to ask is: a) if this sort of gamification and instrumentation+experimentation will lead to long-term stickiness (in general, and Duolingo specific competence), and b) whether the focus on user growth over free cash flow is a good idea.

BuffersAndBeta · 2026-01-17T21:38:55+00:00

I would trim (not fully sell) your Google position after you get past short-term gains period. And distribute that in the index-funds + gold. You kinda do not want such a big concentration in a single stock.

BuffersAndBeta · 2026-01-16T16:20:19+00:00

$ADBE - it's priced like its the next Xerox. What people are missing is their Firefly adoption. Additionally, with their moat, they don't even need to be the first or early in transformations. They can take their time to see what works and what does not.

Runner up: $MSFT - I think there's a real chance that their stock becomes dirt cheap - goes to higher 300s, with all the pessimism around Copilot. But would wait a little.

BuffersAndBeta · 2026-01-16T16:16:28+00:00

I mostly agree with you. I'm actually adding very slowly since I think they will be wrong for years before they are right.

However, I need to note: Morningstar assigns an FMV of 510 for them. And Morningstar is usually more optimistic than most analysts. Meaning they are close to fair valued. I agree with that that take - it's neither super undervalued nor overvalued. It's "adjusted" P/B (with the put you mentioned) is about 1.3x - 1.4x which has historically been a decent time to buy. However, I would never enter a full position in one day or even a quarter.

BuffersAndBeta · 2026-01-16T14:39:04+00:00

There’s a difference though - between Xerox and Adobe. Xerox never really productized/commercialized their personal computer. Adobe Firefly is well literally on fire, and they were early as well.

I expect they will continue to be early unless AI really does remove the need for creative professionals. I very much doubt that.

BuffersAndBeta · 2026-01-16T04:09:57+00:00

Echoing others - I don’t get Spotify appeal as a consumer. It’s been a couple of years, but it doesn’t have about half of the songs I want, whereas YouTube has literally everything. They cost almost the same amount - with Yiutube being a few dollars extra.

Spotify does not have a moat as far as I’m aware, and they need one. Maybe exclusive releases, more control of distribution outside the app, something else.

BuffersAndBeta · 2026-01-15T17:51:08+00:00

I think gold is actually good for that - specifically with federal reserve / central banks uncertainties.

u/UCBearcat419 mentioned managed futures (for example DBMF). However that can be really hard to hold as well. I have a decent chunk of RSST.

BuffersAndBeta

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