Tuesday, Mar 24th 2020
We’re well-positioned to weather the coronavirus downturn with our hedged portfolio of durable growth companies at attractive valuations.
The coronavirus pandemic is a significant health crisis, but from an investing standpoint, we see world-class companies now at their most attractive valuations in years.
There are three things we're thinking about with Titan Flagship:
1) We own durable, defensible companies poised to weather any downturn. If you look at the 20 Titan Flagship stocks, you'll struggle to find any whose long-term earnings power seem at risk.
For example, Uber's network effects are not going away just because riders avoid the roads for a few months. Apple's ecosystem won't erode just because iPhone sales are weak this quarter. This is in sharp contrast to, say, the cruise line industry (which we do not own) whose companies have material risk of permanent capital loss.
2) We're different in that we short the market with a portion of your capital so you can earn profits when the market declines. This is what we call our "hedge."
Our strategy is basically saying: "we want you to be long our 20 world-class companies, but with reduced exposure to a prolonged market shock." It's one of the reasons why hedge funds are famous for outperforming during tough times.
3) The valuations of these stocks have fallen to their lowest levels in years, providing what could be the buying opportunity of a lifetime. Many Titan companies could actually get stronger through a downturn.
For example, digital-first platforms like Visa and Microsoft seem unlikely to have lost 30%+ of their long-term earnings power like their stock price declines suggest. These companies' services seem even more likely to be used in a work-from-home world. Much of our portfolio appears to now offer bargains like these in plain sight.
Long story short, we think it's "go time" for long-term investors. We don't know when a bottom will come, but it will, and our durable portfolio of companies is selling for extremely attractive valuations for long-term investors.
As Warren Buffett says, "be greedy when others are fearful."
Learn with titan
Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.
Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. The introducing Broker Dealer is Titan Global Technologies LLC, a registered broker-dealer and member FINRA/SIPC. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
© Copyright 2022 Titan Global Capital Management, Inc. All Rights Reserved.