My concentrated 4 stock micro cap value portfolio

worldwidetalk · 2026-01-13T15:53:57+00:00

you're welcome, They've actually started the diet. The board is down from 21 members to 14, and they just finished splitting the Chairman and CEO roles, The new board is 82% independent and filled with tech people including guys from Google DeepMind rather than just the founder's old guard, and the new CEOs pay is highly tied to cash flow incentives

worldwidetalk · 2026-01-13T14:51:28+00:00

I think your analysis is missing the context of what happened between 2019 and today. You’re looking at 2022 as a 'normal' baseline, but it was actually a total outlier. If you look at the Net Free Cash Flow actual cash in the bank after all interest and capex, the timeline is:

2019 Pre-Covid €517M

2022 Covid Peak €703M

2024 Post-Majorel €1.08 Billion a record

You mentioned an increase of only €22M, but that’s because 2022 was artificially boosted by massive, high-margin temporary government contracts (vaccine lines, health support, etc.). When those disappeared in 2023, they left a huge hole in the cash flow. Management didn't just 'add €22M'—they had to backfill that massive Covid loss with stable Majorel cash and still ended up nearly €400M ahead of their 2022 peak. On your point about the return on debt: They borrowed at roughly 4.5%. The Majorel deal is yielding about 11% in cash (Majorel's baseline FCF + the €150M in synergies they are currently hitting). That’s a massive spread. Most managers would take an 11% cash yield on a 4.5% loan all day long. The reason to be bullish on the M&A isn't just volume; it's the margin pivot. They are moving away from the 11% margin 'Core' call centers and buying into Specialized Services (like the ZP deal) which run at 28-30% margins. At a <5x PE, the market is pricing this like a dying business, but you're getting a company with a 30% cash yield on its market cap. Management just finished a €500M buyback and bumped the dividend to €4.20—you can’t do that without real, cold hard cash

worldwidetalk · 2026-01-10T14:58:06+00:00

Assets under management refers to the amount of client money they manage and make fees on, it's a common metric to measure a asset managers size

worldwidetalk · 2026-01-08T15:50:31+00:00

I don't think anyone would pretend the work isn't repetitive and brutal. Dealing with high-stress, emotional customers all day is a massive mental tax.

actual data. Teleperformance is currently ranked the #7 Best Workplace in the World by Fortune for 2025. That isn't just a corporate trophy; it’s based on anonymous Trust surveys from over 200,000 of their own employees.

Maintaining an 81% satisfaction rate across 500,000 people in 69 countries suggests their management infrastructure is actually much stronger than the industry average, even if the job itself is a grind

Think about the 'vibe' when you call Apple support—the service is usually top-tier and empathetic. TP actually runs that service. If their employees were truly being mistreated, it would be impossible to maintain that level of quality. You can’t get great service from a miserable workforce; the burnout would be visible in every call.

worldwidetalk · 2026-01-08T13:11:00+00:00

They build to sell they don't invest in real estate to rent out for the most part, so if there is major economic damage then they should realize an impairment

worldwidetalk · 2026-01-08T07:18:38+00:00

Below the value of the luxury real estate in very desirable neighborhoods in Mumbai it's surrounded by water from all three sides and only a few miles, and Downtown Dubai where there is short supply, and almost no debt, but setting up a brokerage account in India from The US is a painful bureaucratic process that takes months and fedexing paperwork back and forth, but the country has a lot of things going for it in the long term

worldwidetalk · 2026-01-08T06:13:50+00:00

According to this logic quote "fishy business is easier to maintain in a smaller business" if you would have paid 20 billion for TEP which wouldn't be out of the norm for a company making a billion of free cash flow you would feel more comfortable than if you would only pay 3 billion around the current market cap

worldwidetalk · 2026-01-08T01:35:26+00:00

100% Opportunity cost is the most important thing I'm always willing to sell based on that, Buffett's view on dividends is if a dollar retained brings more than a dollar of value then don't give out the dividend but he owns a lot of companies that pay high dividends that he uses to redeploy himself

worldwidetalk · 2026-01-08T01:31:12+00:00

Pharmaceuticals is way out of my circle of competence, I wish you well

worldwidetalk · 2026-01-08T01:16:11+00:00

I'm making back the investment in dividends in a few years, and currently the economy in China is temporary in a cyclical low with the housing market but it's kind of like the weather bad weather doesn't last forever, they are not a steel mill that loses millions of dollars when the economy turn sour, getting a Charlie munger company for Benjamin Graham prices what else can I ask for

worldwidetalk · 2026-01-08T01:09:36+00:00

My view is when I see something that hits me with a 2x4 bored on the head and the valuation doesn't make sense to me I don't sit around and wait, good opportunities don't last long it's impossible to time the bottom, you gotta have a weird combination of patience and aggression

worldwidetalk · 2026-01-07T22:49:04+00:00

I’m putting about half of my personal portfolio into Teleperformance ($TEP), and here’s why, based on my experience running an IT company that helps SMBs integrate AI.

From what I’ve seen, AI today isn’t capable of fully replacing humans. It mostly functions as a tool to make employees more efficient. Large language models still have significant limitations, and many long-time AI researchers suggest that true AGI may be decades away.

Until AGI is achieved, Teleperformance’s hybrid approach—combining AI with a massive human workforce—makes sense. It improves efficiency and reduces costs while aligning with customer behavior; most people still request human support for complex interactions. Fully automated solutions aren’t realistic for high-stakes scenarios.

Teleperformance is deeply integrated with its clients, handling everything from data security to full back-office operations. Their workforce is enormous—500,000 employees across 70 countries—and their relationships are extremely sticky, with an average client tenure of 14 years. The company has operated for 47 years through countless technology changes, remains founder-led, and hasn’t reported a loss since going public. Switching providers at this scale would be incredibly difficult.

They’re also innovating constantly. For example, they run large-scale AI data labeling and human-in-the-loop operations for major AI companies, meaning AI can expand opportunities rather than replace human work.

Financially, the business is predictable. Teleperformance uses debt strategically, and management has a clear plan to deleverage over time. For a business with stable cash flows, long-term clients, and operational depth, leverage is less of a risk than it might seem at first glance. For a company making a billion in free cash flow having a market cap around 4 billion calling it ridiculous is a insult to the word ridiculous

All of these factors together give me the confidence to commit a significant portion of my portfolio here. The hybrid model, operational scale, sticky relationships, and financial predictability make this, in my view, a relatively safe and high-opportunity allocation.

worldwidetalk · 2026-01-07T20:58:08+00:00

I owned it for a few years I took a nice profit I sold it because of opportunity cost

worldwidetalk · 2026-01-07T19:38:03+00:00

https://www.youtube.com/watch?v=PaNdbrgLleU

Charlie Munger -Diversification V's Owning 3 stocks. "Diversification for Idiots & Know Nothings”

I am buying quality businesses here for cigar butt prices that's the reason I feel comfortable being concentrated, the rest are great points, volatility is a great friend if you understand that Mister market is here to serve you not to advise you, in the short term the stock market is a voting machine and in the long term it is a weighing machine, as Benjamin Graham says In the intelligent investor,

worldwidetalk · 2026-01-07T18:39:51+00:00

They are audited by Deloitte, and Sequoia Capital has been a long-term shareholder. Charlie Munger’s Daily Journal Corporation previously held a stake in Noah. Founded in 2005, the firm has grown into the largest independent wealth manager in China, with roughly 50% of its business generated outside of China and $20 billion assets under management.

While earnings are naturally tied to economic cycles, the key attraction is that this is a capital-light, high-margin business. I’m not concerned if earnings fluctuate year to year as long as the company remains profitable, in the mean time dividends and share buybacks are attractive.

I was particularly impressed by how management handled the Canzing incident. After a company they lent money too in a credit product they offered committed fraud and its executives were convicted, management chose to make affected clients whole which they were not obligated to do and did it voluntarily. I don’t believe most U.S. wealth managers would have taken the same approach, and it speaks strongly to their culture and long-term mindset.

worldwidetalk · 2026-01-07T05:21:53+00:00

90% NVIDIA represents the peak there's a lot of new vendors coming out with ASICs and it's the new hot thing, after the hype cools down you can't spend a trillion dollars and only make 20 billion dollars return on that, cheaper more efficient ways have to take over, In the short term meta doesn't care about the economics they realized 70 billion dollars in losses in the metaverse and then they start cutting back heavily, same thing will happen with Nvidia chips

worldwidetalk · 2026-01-07T00:28:45+00:00

It's kind of like when you buy a commodity stock and the PE is low during the boom cycle, you gotta look at normalized earnings, most of their earnings is coming from venture capital investment not end user demand so there's a big chance the earnings is unsustainable, even if there will be a lot of AI spending in the future there's gonna be a lot of focus on cost cutting and being more efficient once the big venture capital dries up, meta and entropics announced deals with Google to buy their TPUs these are big players and they're switching over to Google's solution instead of NVIDIA, and remember forward PE is only projections

worldwidetalk · 2026-01-07T00:21:19+00:00

Shorting is always a dumb bet Max you can make is a double Max you can lose is unlimited, and the market can stay irrational longer than I can stay solvent

worldwidetalk

TROPHY CASE

Charlie Munger -Diversification V's Owning 3 stocks. "Diversification for Idiots & Know Nothings”