MBUU
Malibu Boats, Inc. Class A
stock NASDAQ

That is why I used lower profitability margins than recently reported + positive tax rates on top of a very high margin of safety.
If GAMB starts losing revenue, then I'd be covered to some extent PROVIDED they find a way to put a stop to that. If that becomes structural, then we'll have to start looking into whether they can sell off their assets. Market cap of $67 is unfortunately double the amount of total equity less goodwill, which would be the most you could probably wring out of the company in liquidation bankruptcy.
Still, this is why you have to update your numbers whenever the underlying fundies have changed. You never know if & when value has shifted with it.
Anyway, capital allocation is key. I never put more than a certain % of my portfolio into a company I've never done a deep dive on, and even then I *still* have a max size limit that applies regardless of my depth of analysis.
So easy to lose money... you could be wrong, well-meaning managers could be idiots, macro could ambush you with a suckerpunch to the head, an exec with an ego to protect might do something unethical that's also value-destructive (see US: MBUU as an example), bad actors are out to fleece shareholders, etc.

That is why I used lower profitability margins than recently reported + positive tax rates on top of a very high margin of safety.
If GAMB starts losing revenue, then I'd be covered to some extent PROVIDED they find a way to put a stop to that. If that becomes structural, then we'll have to start looking into whether they can sell off their assets. Market cap of $67 is unfortunately double the amount of total equity less goodwill, which would be the most you could probably wring out of the company in liquidation bankruptcy.
Still, this is why you have to update your numbers whenever the underlying fundies have changed. You never know if & when value has shifted with it.
Anyway, capital allocation is key. I never put more than a certain % of my portfolio into a company I've never done a deep dive on, and even then I *still* have a max size limit that applies regardless of my depth of analysis.
So easy to lose money... you could be wrong, well-meaning managers could be idiots, macro could ambush you with a suckerpunch to the head, an exec with an ego to protect might do something unethical that's also value-destructive (see US: MBUU as an example), bad actors are out to fleece shareholders, etc.