Beachman's comeback portfolio - Part 5 (Semiconductor picks)
Portfolio: My favorite semis...what I am buying, how much and at what prices
This comeback-portfolio series has grown into several posts with many more to come. Such is the nature of informed investing based on due diligence and analysis. While each post is a 5-7 min read, behind each article is about 15-20 hours of research followed by 2-3 hours of writing, drafting and publication.
In order to help you follow along, here are links to everything in this collection…so far:
The need for a comeback portfolio approach
State of global macro and current trends
Quarterly forecast and roadmap
Comeback porfolio structure (Paid content)
Sectors and allocations (Paid content)
Cybersecurity picks (Paid content)
Crypto picks (Paid content)
And now we come to semiconductors...
It is widely understood that semiconductor chips are the brains behind many of the devices, appliances, machines and automobiles that we use on a daily basis. Without these micro-processors, life would be slower, costlier and less comfortable. The semiconductor revolution started in 1959 with Robert Noyce's invention of the first monolithic integrated circuit chip at Fairchild Semiconductor. The world has not been the same since. As a growth investor, I want to put my money to work in semiconductor companies that are serving strong secular trends, that are growing market share, that have demonstrated operational superiority (especially amidst recent macro challenges) while building a solid balance sheet and innovating rapidly to get ahead of the competition.
Screening and filtering
I started with 441 semiconductor companies and then boiled the list down using a series of filters based on revenue growth, institutional ownership, margins and cash flows. I ended up with six names that needed further analysis…