Stock Spotlight

Where do good investment ideas come from and how do you keep an exciting opportunity from becoming too much of the same bet? Nick Rossolillo of Chip Stock Investor joins me to discuss how he identifies secular growth trends, studies industries and finds companies worth researching. He shares what he looks for in the first 5-10 minutes of reading a 10-K, why he maps customers, suppliers and competitors before diving into management’s story and what takes his research beyond semiconductors.We also explore why Nick puts probabilities and risks management at the center of investing, including his candid views on “high conviction” ideas. Using Nvidia and Arista Networks, we discuss when owning another great business adds diversification and when it increases exposure to the same underlying risks. Then we tackle semiconductor cycles, the limitations of valuation multiples and how Reverse DCF can help assess what a stock’s price already assumes. We finish with a lightning round covering Free Cash Flow, time value of money, favorite research resources and Kasey’s hypothetical plan for running Disney.----------------------------------------------------------------00:00 Intro00:59 Nick’s Background and Finding Secular Growth05:46 Researching the Industry Before the Company12:16 Looking Beyond Semiconductors16:08 Probabilities and Risk Management22:31 Nvidia and Arista Networks33:18 Rapid-Fire Lightning Round37:47 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumCheck out the Chip Stock Investor website: https://chipstockinvestor.com/Watch Chip Stock Investor's NVDA vs. ANET YouTube video: https://www.youtube.com/watch?v=OuMuLBVcb84Follow Nick on X: https://x.com/nrossolilloFollow me on X: https://x.com/invest091Listen to the episode on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to my Substack: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

Trash collection might seem like a boring business, but behind those garbage trucks and landfills are some surprisingly attractive economics. In Episode 42 of Stock Spotlight, I'm putting three of North America's largest waste operators head-to-head: Waste Management ($WM), Republic Services ($RSG) and Waste Connections ($WCN). From route density and landfill ownership to pricing power and competitive advantages, we explore what makes these businesses so difficult to disrupt. Then I dig into their historical shareholder returns and financial performance, comparing free cash flow growth, capital efficiency, operating leverage and the consistency of cash generation.Of course, a great business doesn't always make a great investment at the wrong price. That's why I'm also evaluating management incentives, capital allocation, future growth opportunities and historical valuations before building a 5-YR Total Shareholder Return (TSR) model for all three stocks. The findings aren't as straightforward as you might expect. $RSG stands out for its financial quality and management alignment, $WM has opportunities to unlock cash flow from recent investments and $WCN combines a differentiated operating strategy with the strongest modeled shareholder returns. After 5 rounds of analysis, only one company comes out on top. Tune in to find out who wins.----------------------------------------------------------------00:00 Intro01:16 Why This Comparison Matters04:15 Performance & Correlation07:20 Business Models15:23 Quality Profiles19:48 Future Growth Potential25:33 Management & Ownership30:13 Final Verdict30:52 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumFollow me on X: https://x.com/invest091Listen on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to my Substack: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

Can we systematically measure whether a business is gaining momentum and whether it's performing better or worse than Wall Street expected?In this episode of Stock Spotlight, I introduce my new Composite Momentum Score, a research framework built to evaluate business fundamentals and earnings expectations across the S&P 500 and beyond. Unlike traditional price momentum strategies, this model separates Business Momentum from Expectations Momentum, then combines the two into a single score designed to identify improving businesses, deteriorating fundamentals and potential disconnects between company performance and market expectations.I'll walk through the methodology behind the model, explain why separating these two dimensions matters, share a few surprising findings and discuss how I plan to incorporate the framework into my investment process. Over time, I hope it becomes a useful starting point for deciding where to focus my research.----------------------------------------------------------------00:00 Intro01:22 Why I Built It02:24 The 11 Signals04:50 How the Score Works06:18 What Surprised Me07:25 A Few Company Examples09:20 How I Plan To Use It11:19 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumRead the companion Substack article: https://stockspotlightpodcast.substack.com/p/building-a-composite-momentum-score?r=73vbqmFollow me on X: https://x.com/invest091Listen on YouTube: https://www.youtube.com/@stockspotlightpodcast----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

In this episode of Stock Spotlight, host Michael is joined by investor and content creator Will Biddy to discuss how they build and manage quality growth portfolios. Will shares how he got started in investing, what makes a business “world class” and how he balances business quality with valuation.Michael and Will also use Toast ($TOST) and Intuitive Surgical ($ISRG) as case studies, comparing what attracted them to each company, the key metrics they follow and the risks that could challenge their investment theses. They finish by discussing position sizing, when to add or sell and a rapid-fire lightning round.----------------------------------------------------------------00:00 Intro01:14 Will's Investing Background05:53 Defining a Quality Growth Business11:23 Balancing Quality and Valuation15:43 Shared Stock Case Studies24:41 Building and Managing the Portfolio29:49 Rapid-Fire Lightning Round32:43 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumFollow Will on X: https://x.com/WillBiddy_/Listen to Will YouTube: https://www.youtube.com/@Will_BiddyFollow me on X: https://x.com/invest091Listen on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to the newsletter: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

In this episode of Stock Spotlight, Michael takes a deep dive into Interparfums ($IPAR), the fragrance company behind major licensed brands including Coach, Jimmy Choo, Montblanc, GUESS and Lacoste. He breaks down the economics of its licensing model, brand concentration, U.S. and European operations, competitive position, financial quality, founder ownership and the upcoming 2027 product cycle that management believes could reaccelerate growth.The episode also examines $IPAR’s management incentives and key company KPIs to watch before translating the thesis into Bear, Base and Bull 5 year expected returns. With strong returns on capital and a healthy balance sheet offset by uneven free cash flow, rising marketing intensity and reliance on brands it does not own, the key question is whether Interparfums is still a durable compounder moving forward or simply a very successful tenant of valuable brand equity.----------------------------------------------------------------00:00 Intro01:50 Business Overview09:43 Industry Overview14:53 Quality Growth Profile19:09 Financial Statement Overview26:30 KPIs to Track27:41 Leadership & Incentives31:45 Expected Return Profile (2026-2030)33:45 Verdict35:15 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumFollow me on X: https://x.com/invest091Listen on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to the newsletter: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

In this episode of Stock Spotlight, host Michael sits down with his longtime college friend and financial advisor Jon Tan to explore what more than 15 years of working with investors has taught him about building lasting wealth.They discuss how Jon’s investing philosophy has evolved, the behavioral and planning mistakes he sees investors make, why performance chasing is so difficult to avoid and what separates successful long-term wealth builders from everyone else.The conversation also covers portfolio construction, rebalancing, the role of individual stocks within a broader financial plan, when a financial advisor can add value and why investing success often comes down to a few simple habits practiced consistently.Michael and Jon then close with a lightning round covering investing books, savings rates, alpha vs. beta and the advice Jon would give his 25 year old self.----------------------------------------------------------------00:00 Intro01:18 From Marine Biology to Financial Advice08:22 California to South Carolina12:33 Investor Behavior16:55 Building Better Portfolios24:09 When a Financial Advisor Adds Value29:50 Rapid-Fire Lightning Round33:20 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumEmail me ([email protected]) if you're interested in connecting with JonFollow me on X: https://x.com/invest091Listen on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to the newsletter: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosures:The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.References to specific securities do not constitute a recommendation from Ali Financial, Palmetto Private Wealth Management or Jonathan Tan. Opinions and forward looking statements expressed reflect the opinions of the speakers and are subject to change without notice.

In this episode of Stock Spotlight, host Michael opens up his portfolio and walks through what has changed since his last quarterly review, including the stocks he sold, bought and how his individual stock positions fit together today.Michael explains why he exited Nintendo ($NTDOY) and Honeywell Aerospace ($HONA), why he added Intuitive Surgical ($ISRG) and Karman Holdings ($KRMN) and then goes deeper on two current holdings: Toast ($TOST) and Booking Holdings ($BKNG).For Toast and Booking, he breaks down:​ Why he owns each company and what has changed​ The KPIs he’s watching most closely​ The biggest debate around each stock​ How he’s thinking about valuation today​ A Green / Yellow / Red ratingThe goal is to make portfolio management more transparent: not just what Michael owns, but why each position earns its place and what could cause him to change his mind.----------------------------------------------------------------00:00 Intro00:50 Portfolio Snapshot02:25 Portfolio Changes09:55 Company 1: Toast ($TOST)17:43 Company 2: Booking Holdings ($BKNG)26:44 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumFollow me on X: https://x.com/invest091Listen on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to the newsletter: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

MercadoLibre ($MELI) is widely followed, but some of the most important parts of the investment case remain misunderstood. In this episode of Stock Spotlight, host Michael reconnects with Shivam following his trip to Brazil and his presentation on the company to professional investors.They discuss what Shivam’s local observations revealed about the strength of MELI’s ecosystem, why investors may be misreading the credit book and near-term margin pressure, and how the company is gaining ground in Mexico while confronting Chinese cross-border competition.The conversation then turns to the key questions heading into earnings: whether current spending is strengthening MELI’s moat or weakening its economics, how investors should normalize reported cash flow and whether the company is best valued through a DCF or Sum-of-the-Parts framework.The episode closes with the expectations embedded in today’s valuation, the metrics that could break the thesis and a rapid-fire round on topics not covered earlier.----------------------------------------------------------------00:00 Intro01:22 What Brazil Revealed04:28 The Geographic Playbook10:14 The Credit Book: Moat or Hidden Leverage?16:13 Finding MELI's True Cash Flow19:17 How Should Investors Value MELI?22:24 Market Expectations Moving Forward24:26 Rapid-Fire Questions28:46 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumFollow me on X: https://x.com/invest091Follow Shivam on X: https://x.com/shivamkashanCheck out Shivam's website: https://kvcapitalgroup.comListen on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to the newsletter: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

A great company is not automatically a great investment at any price. That is one of the hardest lessons for quality-focused investors because the better the business looks, the easier it becomes to justify paying too much. In this episode, host Michael is joined by Fajasy, founder of StableBread, to examine how much future growth is already embedded in two high-quality businesses: Ferrari and Costco.Using Residual Earnings valuation, Reverse DCF analysis and market-implied Competitive Advantage Period models, Michael and Fajasy separate the value supported by current fundamentals from the portion investors are paying for years of future growth. Why does Ferrari's premium valuation appear easier to defend? And what would Costco need to achieve for its current price to make sense?Tune in if you want a practical framework for deciding when business quality is already fully priced into a stock.----------------------------------------------------------------00:00 Intro01:17 Introducing Fajasy and StableBread05:14 What Residual Earnings Means12:19 Ferrari Residual Earnings Analysis17:00 Costco Residual Earnings Analysis21:41 Michael's Reverse DCF Analysis25:38 Michael's Competitive Advantage Period (CAP) Model28:21 Final Thoughts32:11 Rapid-Fire Questions34:58 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumFollow me on X: https://x.com/invest091Follow Fajasy on X: https://x.com/stablebreadCheck out his website: https://StableBread.comListen on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to the newsletter: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.

Most investors spend countless hours researching stocks, building valuation models and trying to improve their investment returns. But before your portfolio can compound wealth, you first have to create the capital to invest.In this episode, I explain why I believe your savings rate is the single most important financial KPI, share two simple examples that quantify its long-term impact and introduce a Personal Capital Allocation Dashboard with four metrics I use to think about my own finances. If you enjoy analyzing great businesses, this episode will show you how to apply that same framework to your own financial life.----------------------------------------------------------------00:00 Intro00:55 Think Like A Great Business02:49 The Power of a Higher Savings Rate04:06 Personal Capital Allocation Dashboard07:11 Outro----------------------------------------------------------------Intro Music: Andrey Rossi – Seize the DayOutro Music: Ra – Prospect*Music provided by Uppbeat PremiumFollow me on X: https://x.com/invest091Listen on YouTube: https://www.youtube.com/@stockspotlightpodcastSubscribe to the newsletter: https://stockspotlightpodcast.substack.com/----------------------------------------------------------------Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.