Buffett’s $ULTA Play, REITs to Watch, Ackman’s New Bets, Gold and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will keep you informed and ahead of the market. Don’t forget, some of our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- What Does Warren Buffett See in Ulta Beauty ($ULTA)
- Roger Conrad: $MAA is a REIT Worth Buying
- Starboard Value Sees Value in Autodesk ($ADSK) with Necessary Changes
- Bill Ackman: Two New Positions Added in Q2 2024 Portfolio Update
- Weekly Roundup: 2024 Fantastic for Stocks, Staying Invested, Gold, Small Caps
Need a reminder of why BBAE? We have one goal: to provide you with exclusive content and data to help you make informed investing decisions. Explore a wealth of market insights and potential investing opportunities that you can’t find anywhere else.
Make sure you catch our Weekly Roundup, where this week, we cover the US stock market’s exceptional performance, the importance of staying invested, gold’s record high prices, and the potential undervaluation of small-cap stocks.
What Does Warren Buffett See in Ulta Beauty ($ULTA)
BBAE CIO James Early analyzes Berkshire Hathaway’s recent purchase of Ulta Beauty stock. He explores Ulta’s business model, financial strengths, and market position. James discusses Ulta’s loyal customer base, growth potential, and the recent stock price fluctuations. He also examines the challenges Ulta faces from increasing competition. How does Ulta fit into the modern Buffett investment approach, balancing quality and value? Read the full article here.
Roger Conrad: $MAA is a REIT Worth Buying
In a discussion with James, respected dividend investor Roger Conrad shares his view that Mid-America Apartment Communities (NYSE: $MAA) is an undervalued REIT with significant long-term potential. Despite market concerns, Conrad believes the company is well-positioned to thrive, citing its recent dividend hike, mid-investment grade credit rating, and potential to benefit from future interest rate cuts. Conrad sees the stock rising from around $150 currently to $200 or even $250 in the coming years. Watch the full video to learn more about Conrad’s investment thesis on Mid-America Apartment Communities.
Starboard Value Sees Value in Autodesk ($ADSK) with Necessary Changes
Starboard Value LP targets Autodesk (NYSE: $ADSK) as a potential turnaround play in the design software market. Despite ADSK’s strong position in architecture and engineering sectors, Starboard cites significant underperformance under current leadership. The activist investor proposes leadership re-evaluation, cost reductions, and improved capital allocation to boost shareholder value. With a robust subscription model and growth potential in construction cloud solutions, Starboard projects 45%+ adjusted operating margins by FY2027 if changes are implemented. While acknowledging ADSK’s strong fundamentals, Starboard emphasizes urgent action on governance and operational issues to unlock the company’s full potential. Click here for the full article.
Bill Ackman: Two New Positions Added in Q2 2024 Portfolio Update
Pershing Square Capital Management, led by Bill Ackman, has released its Q2 2024 portfolio update. The report highlights two new positions: Brookfield Corp ($BN) and Nike Inc ($NKE), the first additions to the portfolio since Q1 2023. Alongside these new investments, Ackman reduced holdings in some long-term positions, including Chipotle ($CMG) and Alphabet ($GOOG/GOOGL). Click here for the full article.
Weekly Roundup: 2024 Fantastic for Stocks, Staying Invested, Gold, Small Caps
This week’s news roundup covers several key topics:
- US Stock Market Outperforms Expectations: The S&P 500 has surpassed all major investment banks’ 2024 price targets, highlighting the market’s strong performance and the difficulty of accurate predictions.
- Importance of Staying Invested: Data shows that missing just a few of the market’s best days can significantly impact long-term returns, emphasizing the value of consistent investment over market timing.
- Gold Reaches All-Time High: A weakening US dollar and anticipated Fed rate cuts have pushed gold prices to record levels, though some caution about potential bubble tendencies.
- Small Caps Appear Undervalued: Small-cap stocks, represented by the S&P 500 Equal Weight index, look cheap compared to the overall market, potentially setting the stage for mean reversion.
Read the full roundup post here.
Happy Investing,
Barry Freeman
CEO @ BBAE
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.
