The Grinch

Jam made his shopping list of stocks to steal for Xmas; cheap SaaS, double digit % dividend yields, stocks covered (multiples times) by financial assets value (FAV), etc...

Thank you Grok for helping me create this 👆 image. It is not a complete success yet, but it shows a lot of promise for 2025!

The image was meant to visualize some of the 2024 Jam_invest stories; Simply Solventless Concentrates ($HASH.v), First Pacific (toll roads), China Tower, Sintana Energy (oil platform), and Tianjin Development (Tianjin port). Judge for yourself how Grok handled the job.

With Xmas approaching, it is traditionally a good moment to reflect what stocks are looking good for the next year and beyond. So I’ll mention some of my favorites for the long-term… and some others that (are starting to) look interesting as well.

In general, the combo of the continued strong run in tech, crypto, and megacap asset prices, along with elevated government debts and budget deficits, keep me quite cautious. The overall environment just does not look too enticing, and seems quite risky.

From left to right: 1) 10x+ EV/Sales multiple stocks represent 25%+ of US equity market cap, 2) The largest cap US stocks represent a near record share in the S&P 500, and 3) US high yield credit spreads are at trough levels

I have mostly been avoiding the hottest parts of the market, and allocating in lower valuation, high dividend, smaller cap and/or emerging markets names. My main goal in the current (high risk imo) environment is wealth preservation and dividend income generation. Obviously, I won’t shy away from long-tail stocks when I find attractive opportunities like with Sintana Energy and Simply Solventless Concentrates… but I do not mind sitting on a lot of cash either.