Why Every Value Investor Is Buying This Stock

SHARESIGHT - Track Your Portfolio (Get 4 Months Access FREE)
▶︎www.sharesight...
Check out my checklist for analysing/researching stocks
▶︎ www.hamishhodd...
In this video I breakdown the investment thesis for Micron, a stock many value investors have taken positions in the past few years.
===========
★STOCK ANALYSIS SPREADSHEET (It's FREE)★
▶︎ www.hamishhodd...
-------
SHARESIGHT - Track Your Portfolio (Get 4 Months Access FREE)
▶︎www.sharesight...
-------
YOUNG INVESTORS PODCAST
▶︎ iTunes bit.ly/YIPitunes
▶︎ Spotify bit.ly/YIPspotify
▶︎ KZbin bit.ly/YIPYouT
-------
LEARN BY EXAMPLE: PLATFORM & COMMUNITY
▶︎ www.hamishhodd...
-------
MY KZbin GEAR
▶︎kit.co/hamishw...
-------
FOLLOW ME ON INSTAGRAM
▶︎ / hamishhodderofficial
LIKE ME ON FACEBOOK
▶︎ bit.ly/2HXowfm
EMAIL ME
▶︎ [e-mail]
-------
Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

[@mayacho4910]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@theresagarcia1218]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.

[@mayacho4910]

@@theresagarcia1218 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. 'MARGARET ANN WARNKEN", a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.

[@theresagarcia1218]

@@mayacho4910 Oh please I’d love that. Thanks!

[@mayacho4910]

@@theresagarcia1218'MARGARET ANN WARNKEN"

[@mayacho4910]

@@theresagarcia1218Lookup with her name on the webpage, omit the quotations though.

[@InvestingwithTom]

Great video mate! And yes, that is crazy small

[@HamishHodder]

thanks Tom!

[@Stockado]

Just to add some info for your viewers: 1. Innovation is not slowing down - the entire thesis is built on the fact that Micron will sell value added products and you need better machines like EUV from ASML - This is also the reason why Micron can control the cycle and they can hold inventory instead of dumping the product in the market for a lower price - they know the demand is there for these high end products 2. The point on data centre is partly correct but we need to realise that players like Microsoft don't buy memory chips every quarter, they buy for 3 quarters and then wait for full utilisation, so there is always a small cycle going on - you can see that with Nvidia as well and this is why Micron just lowered their guidance- so yes the long term demand is there but that doesn't mean the business won't go through cycles Big fan of your videos. If you need any help regarding micron, let me know as I cover this on my channel consistently and I own it.

[@detaildevil6544]

Pabrei bought the majority of his shares +1.15 Million shares in Q1 2019 at an average price of 38.64 $.

[@johnsnow3662]

More of this please! What are other common stocks superinvestors all hold / invested in recently?

[@leestringer]

I don't know if you forgot to edit that part out of "how are they making them so small?" but I'm glad you left it in. My favourite part of the video. :)

[@shottyshot]

the thing to remember, is that moores law was created at a time where digging oil was equally as easy as doubling transistors. we have to realize that we are at the upper cap of this situation.

[@norelleluna6890]

Being of age and how to manage the sequence of returns in those early periods is what seems quite scary in the current market. The market is never a loser in a twenty year cycle, but the 2000s decade scenario scares me and could really disrupt my retirement. When you are no longer accumulating but withdrawing its hard to be anything but cautious.

[@paultweedley2026]

Heard all this a year ago with BABA, tosh, beware false profits

[@gin8505]

Don’t forget Netflix

[@kjk11719]

Have you taken a look at ASML? They're the producer of the machines that produce the chips.

[@mijura_official]

Multiples of MU seem reasonable. In other words, the return on investment is not great. I wonder if LI LU and Monisi have deep insight into MU... I was investing MU at 1%, but Now I have sold even that weight and bought more OXY.

[@andrewcozzi9163]

I like the idea of Charlie Munger typing ‘Ye I know lol’

[@filb]

You could argue that Mohnish would say the samething but in reverse for Baba and Munger lol.

[@MasterChiefSpartan]

Excellent reaffirmation of my decision to buy micron stock in late may 2022. By the way, I am also a value investor

[@stutzpunkt]

Great content mate

[@FUDBuddy]

but why not Samsung?

[@claandmil]

Hi Hamish, diameter of a human hair is 100 um (micrometer), not 100 nm (nanometer). Huge difference when comparing with transistors and chromosomes!

[@HamishHodder]

Must have been a typo from the website I screenshotted from. Yes big difference, a hair is about 100,000 NM 🤣

[@claandmil]

@@HamishHodder Exactly, strenghtning your argument about transistors' tinyness... that is blowing my mind too I must admit. Always appreciate your videos, keep on.

[@theitalianinvestor262]

Very interesting video thanks! Just like u I find it really hard to analyze Micron. We must always remember to stay in our circle of competence

[@paulquinn9105]

What is the average lifespan of memory chips, as used in data centres?

[@SergiMedina]

I already made not bad money from MU, and I'm holding a relatively small position... Not planning to sell anytime soon. Memory is just beginning to explode. Thanks.

[@lilbroomstick7914]

Yea I sold some too on that one run up it had back to its $90 all time highs and now I’m buying the same company at $40. Seems too easy, that’s why I’m always staying up to date with micron and their ongoing oligopoly

[@linusjacobsson2419]

This video is awesome value. Thanks!

[@parhamhamouni3218]

Well-put video. Thank you!

[@Allen-L-Canada]

They are making 3D memory chips now, where the chips will be in a cube shape and are able to expand the spaces of hosting a lot more transistors.

[@leihoa]

Talking about 3 players? Then check ASML, which is ... ONE and ONLY player in the whole world. WHOLE semiconductor producers' world relies on ASML. As they say, "Don't dig for gold, sell shovels" - and this is what ASML does. Company provides equipment to semiconductor producers and noone else can do it the way ASML does. Why? ASML offers most advanced solutions, EUV lithography systems that allow to use wavelength of just 13.5 nm (almost x-ray range) to cut the stuff up to even 3 nm! These things are so advanced that ASML was "convinced" by US government not to sell it to China (they sell to China only DUV systems, older generation stuff and even this is on the radar of Uncle Sam now). And company is well managed and investor friendly. So, this is how companies make transistors so small - using ASML equipment. I do not have position yet, but it is on my watchlist, very high on my watchlist.

[@markoturic701]

I agree with you ASML has what Buffet says a moat around it self and it’s really big one

[@tombo45]

ASML is a fantastic company. The problem is the price it is currently valued at by the market

[@mattw464]

kzbin.info/www/bejne/n4S5eaNseKash5o

[@The135813]

This was such a great video

[@davide8831]

Hi Hamish , can u make an update on asos since it is plunging big time since you made a video about it? Also are you still in?

[@ash3rr]

You sound like such a follower.

[@WPaKFamily]

10:53 So basically the OPEC/OPEC+ of semiconductors? Wow. A technological cartel.

[@WPaKFamily]

@vfbos_productions I too have studied economics. You might be correct.

[@williamhowe9170]

I think Monish is wrong on this one...because TSMC is almost monopoly leader...they have lots of fabs including leading the entire ecosystem of the semiconductor industry...the industry is hard to compete against the biggest player (TSMC significantly at the top and Samsung)...this is because it's very very capital intensive and requires a whole ecosystem to deal with....TSMC which Buffet significantly invested in recently has heavy investments of land and fabs in the US now... BTW Apple left Samsung and it's now one of TSMC customers... also Intel, and lots of other medium sized players....the industry is also an asset to AI and internet of things (IoT)

[@IIIlIllIllllII]

What has TSMC to do with dRam?

[@federicoarmanti7655]

The major limit vs logic chips (TSMC) is that for memory semi like Micron’s you also need to couple the capacitance. If I remember correctly.

[@golafs]

the length of your hair growing for 10 sec is about the same as in 7nm transistor :)

[@bluegtturbo]

MU being hyped no end... And the only way it's going is south. The golden rule is wait until tomorrow it'll be cheaper then.

[@bigbrad5382]

Q3 2022 ≡ David Tepper - Appaloosa Management Sell 100.00% 575,000

[@davidcunningham2074]

a very smart presentation

[@WPaKFamily]

9:05 that pause lmao

[@waterisfree2079]

I have heard that China has been massively subsidizing semis including DRAM and I am not a computer expert at all but when I buy RAM for my PC its not like I am seeing massive jumps in what I can buy for the same price. Seems like more of a commodity and players in China seem to be coming online with little regards to profitability

[@rnegoro1]

Government subsisized.

[@leestringer]

How does quantum computing affect this industry?

[@jakemcfarlane8890]

Thumbnail killed me hahaha 🤣

[@김성대-e3t]

Why everybody don't buy sk hynix or samsung electronic. Sk square has 20.1% of sk hynix. But it is cheap. I guess everybody concern about governance issues. Somebody have any opinions?

[@neilcameron434]

Awesome video. As I understand the nanometer number assigned to a chip is no longer an actual measurement of the size of transistor . For the past 10 years or so it's been more a marketing term used by TSMC etc .

[@jacknorris3079]

Which Monish interview is this?

[@leorwolf]

look for the video where he is wearing the same shirt as this one)

[@zwriter3658]

Strange investment on MU ..only logic is they sell options contracts and collect premiums on these stocks.. other than that as an investment .., I fall asleep watching its down trend movement

[@711-v3k]

You still in asos, Hamish

[@brunoradovanovic2408]

Okey now at 1 p/b is time to start position buying more at 43$

[@BaldInvestor]

You are right. There is this moment when you think "what am I missing" if great investors see some value. But buying it without conviction and some personal analysis ends always in a lot of problems :) Very interesting video. Thanks a lot.

[@rickfool1452]

im sick of people like you. bald investor popular investor incredulous investor adventurous investor patient investor. we get it, you've bought shares, lack hair on top & make videos about it.

[@Dimitris_1987]

Hamish, ASOS update please. They are selling at a price to book ratio of 0.7 which is low as fuck. I averaged down and will buy more at this range.

[@IIIlIllIllllII]

You are buying a company with negative Cash Flow?

[@Dimitris_1987]

@@IIIlIllIllllII yes, it’s only a small portion of my portfolio. But do you understand that the equity is almost 1.5 times the market cap? If they liquidate you get 1.5 your money back.

[@eTexperience]

I will be selling puts on Micron

[@ebianboy]

Great content! TSM will be another interesting company to look into once you have some knowledge of semiconductor.

[@aightm8]

Moore's law slowing down effects the capex moat though. Easier for new players to enter if the goalposts for the equipment don't keep moving

[@gobrewers111]

False

[@aightm8]

@@gobrewers111 no not false. Tens of billions of capex is the biggest barrier of entry into semi conductors. If the manufacturing processes weren't changing all the time. Then the equipment would get cheaper, competition would enter the market and margins would go down. Go invest in an ETF before you blow up your account, you know nothing

[@ssing7113]

Correct is wrong. That’s saying noonish is basically only holding MU? And that means LiLu is holding 1/3

[@Mossberg930]

Had my eye on MU but it's outside my circle. Sounds like it is inching towards a commodity business as the limits of size approach their minimum. Then at that point, we would look for the lowest cost producer. Have not looked into it but that must be Micron.

[@John_Smith100]

He's right but this isn't the bottom for semis

[@Mossberg930]

How do you know? If you can predict the market so well, I should give you my money!

[@macfin4862]

Geez look at all those luminaries holding this. Feels like I'm looking at Ali Baba a year/50% ago.

[@aryanmaheshwari2613]

Crocs, GoPro and Quad Graphics

[@DavidMM255]

Awesome explanations Hamish! I really enjoyed the video.

[@sashwat2556]

hello, i am international student , interested career in investment company, which course is high demand in AUS, MS in Finance, Ms In financial Analysis at Latrobe, ms in quantatitive finance in UTS?

[@user-fx8xg8xj1y]

Business English.

[@DavidSmith-do6ji]

Well worth subscribing guys! One of the best financial channels on KZbin.. :-)

[@kidadd]

Thanks, Hamish! Good video.

[@ashariariya6516]

Ram akan jadi SSD untuk data center 💥💥💥💥

[@warathanuts.1005]

Semiconductor industry is a tough industry. As we are heading to more and more intensity of resistors of small chips. It becomes really expensive to build and manufacturing small chips. Because of the high cost investment upfront to build and expand fabs. Micron will not be able to withstand very expensive investment for a new fabs of every new breakthrough technologies. High cost entering the industry will eliminate small, medium and news companies to enter/survive in semiconductor industry. That will leave us only 3 big companies TSMC, Intel and Samsung.

[@brainstormer2520]

For Buffett, the best holding period, when he buys a stock, is forever. Is Micron a good stock to hold forever? How will Micron look like after 10 years? How will it look like after 20 years? I'm not sure. So, it's too hard for me.

[@LL-wc4wn]

I dont at all agree with the notion alp value investors like to see what others are doing. Warren Buffett says when he looks in the mirror in the morning everybody has had their say. Im sure you know the quote already. Copying is lame and wont lead to good returns long run. You need to make good decisions based on reasons not copying. I disagree strongly with Pabrais cloning idea.

[@Growth-Value]

I agree that cloning mindlessly is a terrible idea but what pabrai is suggesting is to look what your respected investors are buying and try to figure out why they are buying. If you can understand the thesis maybe it might be a good buy. Cloning is more of a way to screen potential stocks rather than actually just copying and not doing a deeper dive.

[@LL-wc4wn]

@@Growth-Value the problem is most people will just simply clone. If you are an intelligent investor you will have already discovered such stocks yourself and own them and then concur with other investors who also own it. If you found out about it on yourube its pretty safe to say you are going about it backwards and will mindlessly clone and your analysis will be swayed

[@brainstormer2520]

@@Growth-Value Do you happen to know what the annual return of Pabrai is, since the inception of his fund? I've been looking for that figure for sometime now, but couldn't find it. Many people call Pabrai a legendary investor. What's his real performance though? I mean are there any numbers that show that his performance has actually been higher than average?

[@LL-wc4wn]

@@brainstormer2520 idk what his returns are but, in line with my op, it really doesnt matter unless you are trying to clone him. Your brain's power is all that matters if you are actively investing money. Other wise you probably shouldnt be

[@brainstormer2520]

@@LL-wc4wn I don't believe in cloning anyone.

[@phantomcreamer]

But, if the technology becomes less innovation dependant, then the innovative moats of these companies also evaps

[@amid_invests]

Wow a lot of science here Did you study electronics bro ?

[@גלשדה]

Thanks Hamish, you make a compelling case for the future, but, new technologies are coming along, like carbon based transistors, so capital expenditure will not decay. However, memory consumption is doubling every two years on edge devices, and on cloud computing so the demand is growing rapidly

[@kaizeremm]

Love your videos! Learned a lot from your content! I hope to contribute more to your success by continually commenting and liking your videos!

[@sunaxes]

Holding a stock forever is a stupid idea. You can do exponentially better by simply checking your portfolio from time to time and letting go of those which underperform.

[@thestudentofdhandho5302]

Thanks Hamish. This analysis was great. I came to similar conclusions with Micron - super interesting but probably too hard for me rn

[@abu4729]

They are already in MU. It's too late. MU got to $90+ back in Nov 21 then crashing since. I'd rather not be the escape goat. MU sells to big corporations, they're always negotiating for lower prices, Moore's law means higher capacity in smaller space, doesn't mean prices higher too 😁

[@derekperry1853]

It’s scapegoat not escape goat

[@gobrewers111]

They are making it less cyclical by having companies sign huge contracts and pay upfront. The way they are expanding and their margins I feel it's a great stock. I made out like a bandit buying in the 40s in 2018. Will easily be a 100$ stock within 2 years. Their Capex is insane and the moat to compete is extremely high. Great US company.

[@tadakimasu]

Thanks for sharing what you learnt. Bc of the complexity of the industry I was tackling it purely on liquidation value per share. And now Biden has just signed a bill which will help improve the sector, that just adds more value to the sector.

[@felixpeel3518]

Highly competitive? It’s an oligopoly only three main players in the memory space.