Part 4- Stock Analyse and Observation from Warren Buffet's portfolio

Today I will share with you some insights that I get when I do the analysis for those companies this year. As you can see on the screen, Apple, Google, Coca-Cola, P&G, Meta, Nvidia, DSMC, and Tesla. And also based on when I look at the Warren Buffett portfolio from 1998 until now, I also figured out something. And I also came up by analyzing some of his companies in his portfolio. I also understand why he made some decision to reduce the investment or fully sell out some of the companies. So, why? Just let me quickly lead you through the Warren Buffett portfolio from 1998 until now. So, as you can see in 1998, Coca-Cola took more than 30%. But then 10 years later, Wells Fargo took place and Coca-Cola took about 16%. And at that time, P&G joined the portfolio, also took around 10%. But then 10 years later, P&G gone, Coca-Cola decreased to around 11%, and Wells Fargo also now takes only 10%. But Apple takes place, and until now, Apple takes most of his investment, but not over 30%. And you also can see American Express, Bank of America, now takes more proportion in his portfolio. Why Coca-Cola decreased and why? There is a reason, and mostly it's because those companies like, for example, Coca-Cola and P&G, they are not in the good trend to still keep the advantage at a durable competitive advantage. And that's why he reduced the value he invest in those companies. And another reason is that all the companies, for example, Apple, show more strong evidence about how they can have the durable competitive advantage and also how they can keep this trend in the long term. So, just let me give you one of the examples here, for example, Coca-Cola. When you look at here, you also can see some of my analysis. For Warren Buffett, revenue should usually go up and keep the trend stable. But in here, you see the Coca-Cola is not in that trend. The gross profit is quite somehow acceptable because it is quite stable, around 60%, and over 40%. So, it is good in case of Warren Buffett. But then you look at the net income, net income ratio, and EPS, you will see that something is not met yet. And this is not stable for some reason. You can figure out more. So, this is first when you look at the income statement of Coca-Cola, you will see it is not somehow still good, but not as good as Warren Buffett expects. Later, when you look at the EPS, you will know more about why I said like that. Now, when you look at the balance statement, you will see the cash and cash equivalent is also not stable for Warren Buffett. Durable competitive advantage always goes with the stability. And then you can see like most of the things, like the assets of the Coca-Cola somehow decreased, and they just increased recently, but they still keep the heart to defeat assets in order to entry and compete them. And then when you look at the long-term debt, you will see like somehow now, even the short-term debt Coca-Cola decreased, but the long-term debt they increased. This is something is not in the good signal for Warren Buffett. And the retaining earnings is still in place, so that is good. But the thing for Warren Buffett is always for the durable competitive advantage, they need to control their debt. But when you look at the net debt, you will see like the debt is over the cash. So that's why you always see the very positive figure here. So from Warren Buffett's perspective, like if the debt is lower than the cash, it means that the company has a very strong cash power to control their debt. But here, Coca-Cola is not. And then when you look at the cash flow statement, you will see a lot of things. And one of the things is that for Warren Buffett, if you use your retaining earnings to get back most of your stocks and buy back them, that will bring the benefit for the stockholders to increase the value of the stock. But as you can see here, recently, if you see the uptrend, that means the company do not spend more to buy back the stock because it is always in the negative, so that's why the trend is up. So that means the Coca-Cola do not have much ability to keep continue buy back their stock and that cannot bring more value for the stockholders like Warren Buffett. And when you look at the ratio, you will see that some of them are quite good, but some of them is still not in the good term because they are not stable ability and they have some deep doubt on the trend. But the most important thing when you look at here, let's see, you will see like also other analysis can give you like mostly it is always fluctuate, not stable ability, which Warren Buffett don't like. And when I go to the advanced analysis, I can see something more. And some of the things even to me that this metric, liability over the real equity. And as you can see, it is not really good because as Warren Buffett said, this one should be less than 0.8. That to see that like the company can use its equity to solve the debt. But in here, mostly over 1 and even they are increasing. So for Warren Buffett, this is not the good sign, good signal because that means the company are depend too much on the debt. But at least they are still somehow, Warren Buffett said like short-term debt to long-term debt, that means Coca-Cola is not go to the trend that they will use to get the benefit from the short-term debt to over the long-term debt. So that is something still good, but for this one, it's not so good. And when we look at to the dual bonds, ROI, we will see that they are increasing, but the reason they are increasing is because of the increasing of the multiple. And the multiple here means the Y, but when you look at to the return rate and also the margin, you will see they are not so have a good increasing in the value, but only the increasing in the multiple. That means Coca-Cola is using the debt to leverage their value. So which is quite dangerous to Warren Buffett, that's why he do not like Coca-Cola anymore. And when you look at to other things, you also can see like equity bond rate is quite good. Let me share you something. As I mentioned before, you can see now they are not spend too much on buying the stock. And also, when we look at to the retention rate, we will see like they are spending more of their cash. Do not to for the, how I can explain here. So as you can see like, this is something like the dividend pay out ratio is so high. That's why the retention rate for the retained earnings is low. And that is what Warren Buffett don't like. From his perspective, whatever you gain, you should not pay the dividend to anyone. You should keep it for the retained earnings and use it to upgrade your value of the stock, like buy back the stock or invest in something that can expand your business. But Coca-Cola is not that way. And even when you look at to some other further analysis, you will see like the growth rate of revenue, EPS, free cash flow, BE, earning before tax, everything is very low. And that is not good in case of Warren Buffett. And with my analysis, you will see Coca-Cola will satisfy around 66%, over 100% of the average acceptance. And that's why you will know like why Warren Buffett do not hold more share of the Coca-Cola, but he still keep it because one of the reason is that like everyone will need to drink Coca-Cola, right? And Coca-Cola still has the very good growth rate. They are also not, even they are depending a lot now, have a trend depending a lot on to leverage the debt. But they are still somehow in the control. And they are somehow also can generate a good growth rate in this way. But all of those things is not durable. Like this is still durable, but it's not to bring him a lot of advantage. As Coca-Cola cannot like upgrade their stock value anymore. Because if they cannot use the retained earnings to buy back more stock or expand their business, that means the business cannot scale up anymore. And the value of the stock like cannot increase anymore. So here is the one reason why Warren Buffett do not like to hold the Coca-Cola anymore. And from my analysis, somehow I think like maybe he will reduce the Coca-Cola portfolio more due to something I showed you. And for the BNG, you know that like he buy in 2008, but then now he does not hold anything related to BNG. I think there is some many reasons, but one of the reasons is that like during at least the last 15-10 years from 2014 to 2024, I see some trend that like BNG manage their business is not so good. And the way they invest and the way they are doing is like bring them to the hard competition. And for Warren Buffett, like if you are in the competition that you cannot easily to win over other, that means something is not durable. And BNG also in that case. So just for example, just quickly check some of the points. So let's see where are some things that we can see. First, you can see like the net income of the BNG just recently increased. So you can see like from 2014, it is good, but then it decreased a lot. And now it just go back to the normal state that it had in 2014. And maybe during this time, Warren Buffett see like the downtrend of the BNG and he decide to not keep it anymore. But that is not the only thing. Another thing is that like for Warren Buffett, like most of the time the net income ratio should be over 10%. But as you can see from here, it is not stable, right? So one thing for BNG. Then the next thing is that like you can see from here, the cash is not stable. So the goodwill somehow the BNG do not, maybe because they integrated their M&A into their company. Or maybe the company they are buying is not perform well. So that's why it decreased the value over time. And for Warren Buffett, it is not the good signal. And then when you look at to the total asset, this is something I think like why Warren Buffett really worry and he decide to selling it. As you can see from 2014 until this point, it decreased continuously. And recently it just increased a bit. But this is the very bad side for BNG. And also they spend a lot for the long term debt. And for the next step, yes, again, this is not stable. And this is still like we would say like it is just recently in the downtrend. But it is not good in terms of the controller debt. And when you look at to the cash flow statement, you will see like one of the favorite thing of Warren Buffett is like purchase the common stock. And you see like most of the time they do not purchase too much and they just purchase like maybe two times high. But now it's back to normal. So this is something I can consider for BNG. And just let me quickly give you something. As you can see, like the current ratio of BNG is less than one. And this is not good. That means like the company cannot leverage good his current ratio to support and show the current liability. And return on investment also not good. It's just around 10%. That is something is not good. And return on assets also. It's not so good in this way. It's not agree and it's not stable. Then now let's look at the growth. You will see this is also not stable and quite fluctuate. And when you look at to some of the analysis here, you will see like the liability and the real equity. It is so bad. That means like they cannot show the liability with their real equity so good anymore. Because if you look at the number here, you will see it's increasing. And it's not good, right? And if you look at to the DuPont's ROI, you will see like in here. The good thing is like it's increasing but it's not mainly depend on the margin. But it's good because they increase the return rate. But the multiple is also high. That means they are still depend on the debt. And so on. When you look at to some other point and you look at like their performance over recent year. It is so bad. The ROI is not so good like Coca-Cola. And when you look at to this one, you will see that they will have like something. Let me share to you. Yes. That is something that I would say to you like that's why the World Market do not want to hold the B&G anymore. Because somehow they are spending too much in the way. Let me see. Yes. So that's it for B&G. Yes. You can do the analysis and you also can see some trend like that. So for me like the debt control and also the good thing related to the stock reversal is not there yet. And that is something is not so good for B&G. And after analysis, you can see they just similar to Coca-Cola. So higher than a bit because recently they have the increasing. And Warren Buffet is already sold them out before they get the uplift. But even they get the uplift, it's also not the good signal from my perspective and also based on what I understand via the book I read. It's not something Warren Buffet like even they are increasing. Right. Yes. So that's it for the B&G. And now we just look at some of his portfolio for Apple and we will see a very different story and why Warren Buffet decide to invest in this one. So firstly when you look at to the revenue, you will see this is the totally different trend from Coca-Cola and B&G. This is stably increasing over the 10 years, 2014 to now. And then the gross profit even you see slightly decreased but mostly this is around 40%. And that is good to Warren Buffet. And it is consistent have the net income ratio over 20% and for Warren Buffet, any company that has the net income ratio over 20%, that is a very good company. But if you look at to the Coca-Cola, let's see Coca-Cola here and you will see like the net income, no, ratio is not there, right? And even for B&G, if you look at here, you also see no, it's not right, it's not right but Apple is there. So this is the first big win for Apple in the eyes of Warren Buffet. Then when you look at to the balance sheet statement, you will see like it is quite fluctuating. Okay, this one no, it's not so good. This is the goodwill of Apple here is quite different from the goodwill that Coca-Cola and B&G investing. Apple, they just do like one M&A, as I know, like one M&A with the big company and the But then they integrated those two companies into their own Apple and they do not depend on to grow the business based on the M&A company. They want to build their own strength on their brand and that is something now Apple is the very good brand and that's why it has a good signal for me and also maybe for Warren Buffet. And when you look at to the total assets, you will see another different totally different story from the B&G right. The Dow trend over the time is just increasing but here they are mostly increased and even decreased. Now it is still in the high range. And when you, but they are still have some drawback as you can see here. And but the thing is that like even growing and the stock price of the Apple is very high but the company is still able to use their profit to have the return earning and then in later you will see like they spend most of their return earning for rebuying the stock and that is the good signal for Warren Buffet. Now, let's have a look at the cash flow statement and then in here. Oops, something wrong. Let me see. If you see something wrong like this, you just need to go to, this is, sorry, this is means extension. You go to this one, you will refresh the error and wait for it. Then it will show. So in here, I just, it is not here yet, but I will let you know that like the stock Apple is buying is increasing over the time and it is super high. Okay, I hit the daily quota. Okay. So later when you have it, you will see. Ah, thank you God. Like you see here, they spend a lot and even more over the time. The downtrend means they spend more like you see. And this is a very good signal for Warren Buffet because the more they can buy back the stock, the more the value of the stock will increase. Right? So that's why the price of Apple now even higher and higher over the time. That's what Warren Buffet like. And when you look at to the ratio, you will see like the current ratio is also in the control. ROI is so good. And as you can see, like if you look at to Coca-Cola and B&G, they are maybe just around 10%. Let me see return on investment of Coca-Cola. Then we can see like ratio here. ROI, you will see just around 8 or 10%. And B&G also at that rate. Let's see B&G. Sorry. Ah, yeah. Also around 10%, right? But for Apple, this is so promising. Over 20%. And even now they are increasing and more than 40%. Their business expand. They get more revenue. They get more net income. But they are also increase the return on investment a lot. And this is what Warren Buffet really like it. And now you have one of the signal, right? With over 20% and their asset is more than 100 billion. And this is very hard for any company want to defeat them, right? And this is another moat that can ensure the business of Apple in the long run. And let's look at the row. You will let's see. Oh, this is error again. Yes. So, maybe after you duplicate and you refresh the page like what I did before, you will get it easily. Just let me try again. Extension. Refresh the error to see whether it give me a chance to get back my income or not. If you look at to this one. R&D and SMA. This one is Selling, Marketing and Administration. They are the reason. And could you imagine? This is the philosophy of Warren Buffet. If the very durable company is the company that can spend less on R&D. Actually, as you can see, they spend less on R&D. This is not they spend less. The money they use to invest in R&D decrease over time. So, you see like, for example, in 2014, the row compared to 2013, they invest more 30%. But then when you look at to the 2024 and compared to 2023, they only increase 4% for R&D. And this is a very good signal for Warren Buffet because that means the company do not keep continue to spend more and more R&D over the year to keep their competitive advantage. And that is a good signal for Warren Buffet. And when you look at this one, you will see that something is also interesting. It's like short-term debt to long-term debt. That means they do not use the short-term debt to bring the benefit for their short-term value. And this is very good. And for the long-term debt to the earnings, that means if you look at to those numbers, you can see that like if they have the debt and for all the long-term debt, they can easily to solve all the debt within 2 years. And this is by their earnings. And this is a very good signal for Warren Buffet. And then also if we look at to some of the other things, we will see like the ROI also increasing over time. And the reason they are increasing is because of the asset sales over increasing. You can see here, it is increasing a lot. A lot. That is a very good signal of Apple and Warren Buffet really like it. But one thing Warren Buffet don't like it is that they are still use the debt to leverage their business. And this is something Warren Buffet don't like it. So I also give here for you to see. And the reason is that like the company equity, if you look at, it is high like that. But if you take out the money that the company use to buy back their stock, you will see like their real multiple equity is just around 3. And that means the company control the long-term debt within 2 years and leverage it around 2.5. So it is acceptable. If you just look at the equity, then you will think it is very high, yes. But if you look at to the real equity, you will think that is in the quite acceptable rate for the company like Apple. So that's why Warren Buffet hold a high portion of Apple in his portfolio. And even when you look at to something more, you will see it is very good. That's like the capex. You will see like the capex here. The company just invest even lesser and lesser than 25% of their net income for to buy in or to establish some fixed asset or open the company for the capex. And this is really good in the eye of Warren Buffet. And even you accumulate it, it is also very good. Right, you see? Very low, very low. Lower than 25% is something really good. But if you look at to the portfolio, for this ratio, let's see. You will see here, you will see. It is still, it is less than 50%, right? And now it is start to less than 25%. So somehow acceptable to Warren Buffet. But it's not so promising like Apple. And now if you look at to B&G, let's see what happen to B&G. Then you see like they are decreasing but somehow it is in controllable. But it's not so promising like when you compare to the Apple, right? Yes, so this is something Warren Buffet like in the company. And you will see like the percentage they are using to buy in their stock is very good. It is very, very good. And this is what make Warren Buffet like them more. And those rates is not so good. That's why you will know like why recently even Warren Buffet still keep most of his share in the Apple. But he still selling it because of this reason. But they are still good. And then if you look at to here, you will see the R&D. Like even they are increasing, not so good. But the proportion is not so high, right? It's just less than 20%. But from Warren Buffet, it is also not a very good signal for his. If you find one company that spend zero for R&D, they are super good. But it is hard, right? But the lower is the better. But now Apple is increasing. But the growth rate as I showed you before is not so high. So it's somehow acceptable. And it is just not more than 20%. And then when you look at to other things, you also can see like especially for the depreciation and amortization. It's less than around 8%. Start to less than around 8% and forward to Warren Buffet. It is so good. That means like the company spending to buy some carpets and depreciation and amortization over the time less than 8%. It is super good. That means the company do not give a lot of pressure and do not spend their profit for buying the carpets to maintain their business. So that's the really good signal for Apple. And if you look at to Apple, you will see like they are fairly meet the requirement. But I would like to say to you like Google, Meta and TSM even do it better. So just first start with Google. I will let you see this one. For Google, you will see this is revenue. Yeah, very good, right? Gross profit is over 40%. It is better than Apple. As you remember, Apple is just around 40%, but they are more than 60%. And then when you look at to something more, their profit is over 60% all the time. Now even they are decreasing, but they are still around 60%. This is quite good. And they maintain this for 10 years. But when you look at to Apple for their ratio, you will see like here net income ratio at the 40 is just 20%. And now they are starting to have just also around 20%. But for Google, they are already... Ah, sorry, the gross profit. I am looking to the wrong one. The gross profit ratio, you will see they are around 30%, 40%, and now they are just more than 40%, right? But Google have it in 10 years more than 60%. And then when you look at to the other like the net income ratio, you will see like they are keep over 20%. And Google also the same. Then when you look at to the balance sheet statement, you will see something. Let me show you like the good view. They have a very good investment in other company. That is so good. And the total asset is super good. And now they are undefeatable asset that any company want to defeat them. And then when you look at to retained earnings, they are increasing. And they use most of their retained earnings to buy back the stock and do not spend the dividend which to me like is the one of the key golden point for Warren Buffett. But he did not buy Google because in his view, Google is something he cannot understand. And he think like it is not like something in his knowledge or maybe in his control. So that's why maybe even they are good like that. He do not invest in it. And the next step here, you see they are good. They are good even they are increasing recently. But most of the time they are less than zero. And that is the good thing to show that like the debt and the thing is under control. Yes, maybe here this is 55. Yes. And then if you look at to the cash flow statement, you will see like something like they are buying back a lot of the stock. If you look at to the ratio, you also see something very interesting. The BE over the time is only one time higher. That means the market is over expecting. But mostly less than 30 and that is a good signal. And then you will see the current ratio also show that they are using it effectively. The ROI is increasing over the time. And yeah, this is not good as Apple in terms of the return on investment, right? But it is over 10%. Yes. And return on asset also the same story. Then let's have a look at the rule. Let's see whether we see anything. Yes, this is something not so interesting to say. But when we look at you here, you will see like the liability and the realty. That means they are much more better. So from World of Warcraft less than 0.8 is so good. But the disc rate from Google is just around 0.3. So even better double than what World of Warcraft expected. And then you look at the other thing like for example the long term debt to the earnings. This is so low. And that means like with all the long term debt, even if it is increasing, in the Google, they can really solve all of the long term debt within one year. And this is super good. This shows the financial power of Google. And also when I look at you the ROI also see a very good increasing in trend. And this is the very good is that like the company mostly increased because they are increased in the ROI and because the equity multiple is low. As you can see, this is lower than Apple and it is just around 1 to 1.5. And that is the very good signal for the Google. That means they have the return on equity is something is so good. And then when you look at to the CapEx, this is not so good. That means they are still spending a lot of their net income to work for the CapEx. And maybe because of this World of Warcraft may say like Google need to maintain a lot of their business by investing more in CapEx to maintain their competitive advantage. And that is something he did not like. Maybe this is the reason when he look at to this figure he don't want to buy Google. Maybe because compared to Apple, Coca-Cola and B&G, this ratio is very low and in the acceptable way. So for him, less than 50% is good, less than 25% is bad. And this is Apple, Coca-Cola, B&G is somehow appear in his portfolio. Maybe because of this reason. And then when we look at to some other thing, we will see like this is really good. And especially here, if you look at here, oh so amazing. To me, Apple, Coca-Cola, B&G cannot have so good growth rate over the time like this, like Google. It is super, super amazing to me. That's why I decide to buy this one. And then when you look at to this one, you will see like they spend R&D also high but less than 30% so maybe acceptable. And when you look at to all other thing related to the debt, this is super low and this is super good. And even the depreciation, as you can see like they spend a lot of their net income to invest in the car back over the 10 years. But the rate for the depreciation and amortization is so low and even decrease over the time. That means what they invest bring them more value over the time. If you remember the return on asset when you combine everything, you will see like they are so good in managing the business. So that's why if you look at here, you will see I am rating Google like this. But I remember one thing, I think I am over-evaluating or over-rating for Google in this way. Just let me quickly check this one. They are okay but they have the increasing trend. Everything is quite good but 55 is not something really reflected here. So I just give it 34. So let's see. Yeah, it's still high. Now, then another one I would like to show you is the Meta, very interesting one. If you just look at to the summary, you will see Meta here. The current price is 600. I would say to you like last year it's just about 300 and when I do the analysis, I still see this is the good one to buy but this is too expensive for me to buy. So I did not buy last year and even this year they are 600 but Meta is still in the good price. The reason is that if you look at to the BE, you will see like the value of the company and the expected from the market is the same. That means like the market is not over-evaluate the value of the Meta and that 600 reflects somehow the correct value of Meta. And even you can see like the fair price and even if you just check 50% discount, this price is the discount price for you with the 60%. If you think like you want to invest in Meta, you can make a try. From my side, yeah, it is still so high but the analysis say like this is so good and why? Let's have a look at it. So, revenue good, gross profit is super good. If you look at to this gross profit, you will see oh my god, this is over 80% and over 40% is the best. But over 80% during the last 10 years is super good, right? Yes, and then when you look at to some other things, for example, the net income ratio over and it is more than 40%. If you remember, Google and Apple is just around 20%. And this is also again to show that like it is the good signal. And if you look at to the balance statement, you will see the cost increasing, the trend, right? And the goodwill also increasing. The total asset is also increasing and now it is indefatigable. And retarded earning also increase. And the net debt also decrease and they just like the way of Google, right? So that means they control the debt very good. They can use the cash to cover the debt most of the time. And then let's look at the cash flow statement. You will see like they increasing to spend to buy back the stock. What will give them? Like when you see this signal, that means like the value of the stock will increase. And then when you go to this ratio, you will see something here, right? Current ratio return on investment. But here it is not so good as Apple and especially Google, right? So that's why I am writing it in this way. It is in the acceptable way, right? But it is so good, right? And return on asset also so good, yes? Then when we look at to the growth of the company, of the something, this is also good, also good. Yes, this is also quite good. And now if we look at to here, if we look at to some of the key points here, you can see like they can solve the debt within one year. This is so good. They mostly less than 0.5 over the time. That means their real equity can cover most all of the debt. And then the dual point ROI increase over the time. And it's mostly because of the increasing in the asset turnover. And this is not and the equity multiple is just around 1 to 1.5. And this is so good. That means the company lift up their value because of their good asset turnover and the net profit margin. And when you look at to some other thing, you will see like this is also good. And here also, yeah, excellent. This is excellent, I would say. This is excellent. Because if you look at to Coca-Cola, B&J and Apple, you will not see something very good like this. This is just the way that Meta and Google can make it. And then when you look at to here, you will see also something interesting. This is quite anomaly. Yeah, you will see this is interest expense and their depreciation is like this. Yeah, this is also acceptable but not less than everything, right? And here you will see like one thing is that like they have a lot of profit. And mostly they spend the gross profit for the R&D. And actually, I don't know. This is one of the reason make me feel like because Meta get a lot of money and a lot of gross profit. And then they spend because they spend too much on the R&D. And that's why like this make me feel like I don't know what are they doing. They do any R&D for something, just develop something to make people engage more in the social media. And for me like it's not really contribute something for the human needs. It's just like make you and your children be addicted to the social media more. So for me, it's not show something really benefit for the human and society like Google. Because only Google creating something that you can use and support your business, support your intelligence and support your daily work better. But for me, Meta now it's just more like entertainment. Nothing more. And that's why maybe the reason when I also look at to all the thing and I look at to the way they use their money like this and investing more on the R&D. But nothing can really bring the benefit for the human except the business itself. That's why I said to you like even I see this is good and this is potential and this is for sure very potential. As you can see right, the gross profit over 80% and the net income ratio also very high. And also all the like main thing related to the debt and the way they control the debt, everything and the tax is so good. Everything mostly good. Yeah. And if you like it, you can investing in it. And that is how you can make the decision. And I just give you the overview for Coca-Cola, B&G, Apple, Google and Meta. For Tesla, Nvidia and Taiwan semiconductor, you can read it and you also can understand the logic behind. And after all, I decide to buy this three. Yeah. But I still need to consider about Apple even they are good but fairly good, just fairly good, meet the acceptable rate. But for me like I also investigate Nvidia and TSMC and I figure out like I would like to invest in the Taiwan semiconductor manufacturer because they produce something really good, right? And they do not spend too much on their, how to say, like their control. Even they invest more in the AMD, they invest more in the CapEx but the way they control the debt is so good. Normally, it should be higher but they are the leader of the market and they can control the debt very good. And that's why I decide to buy Taiwan semiconductor because Nvidia mostly they can generate more thing because they mostly just decide the chip. And ask TSMC produce the chip that they decide and bring it to the market. But for me like many company like Nvidia, Google, Meta, Apple will need to have their own chip, right? And in the end, even they order from Nvidia, Nvidia will for sure will go to the TSMC to order to produce the semiconductor for them. And I'm quite sure that like to have the scale like the TSMC is now undefeatable asset. If you want to have the ability to produce some semiconductor like TSMC, it's very hard for any like new startup company decide to do that. And even their technology and their knowledge in that is super good and now it is the leading of the world. So that's why I decide to buy the TSMC instead of Nvidia because this is the one, the core of every other around the world. Even they are not have the some chip basement like Nvidia but Nvidia order them to make it. So they are just the producer. So if you buy from the origin, this is also to me like it is more safe than buying from someone that we can say how to say like from the retailer or from the wholesaler, right? So that's it my analysis and my decision. This is a very long clip. Hopefully that like you don't feel boring or you feel it is too much. I hope that like my analysis give you some insight for this 2025 and you also can use my 5 to do your own evaluation and make your own rating for all the retailer in the financial statement. And that's one I think like anything is always better that you do it by yourself rather than hearing from someone. So my suggestion is that like even I give you all the information here. I give you my own analysis. But you can make it by your own is better. So hope you enjoy the session. And if you want to know how to use my 5 to do your own analysis and also to have a quick check on the price of any stock market that you want to get. Then just go to the other clips of my series and watch it and follow the steps so that you can use it properly. Yeah, thanks a lot and wish you enjoy the journey to become the value investor. Thank you and see you in the next video. When I will talk to you about what if you want to invest like monthly from your salary and there is a strategy for you and don't worry you can follow that strategy very well. Yeah, hope to see you soon. Thank you and goodbye.