2025 Investing Resolutions, $URI’s Growth Potential, InsiderEdge Highlights, Emerging Markets, and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will keep you informed and ahead of the market. Don’t forget, some of our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- 2025 Investing Resolutions
- Qualivian Investment: United Rentals ($URI) Investment Case
- InsiderEdge Highlights: December 2024’s Top Insider Trades
- Weekly Roundup: Not-So-Overpriced Stocks, Emerging Markets, ETFs Killing Mutual Funds?
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2025 Investing Resolutions
In his farewell piece as BBAE’s Chief Investment Officer, James Early offers a personal and practical guide titled “2025 Investing Resolutions.” The article, intended as sage advice one might give to a family member, underscores the importance of aligning investment expectations with realistic time horizons and the difficulties of stock picking. Early emphasizes that most investors fail to match market returns due to frequent trading and overconfidence, advocating for a disciplined, long-term approach. He concludes by urging investors to resist the allure of market timing, highlighting the significant impact of missing key trading days on overall returns. With this final advice, Early seeks to steer investors towards more successful strategies that focus on steady, informed, and patient investment. Read the full article here.
Qualivian Investment: United Rentals ($URI) Investment Case
Qualivian Investment Partners highlights United Rentals ($URI) as a strong investment in their Q2 2024 investor letter, underscoring its market leadership in the North American equipment rental industry. They point out URI’s consistent growth and decreasing cyclicality within a consolidating market. With strategic acquisitions and government infrastructure projects fueling its expansion, URI’s disciplined capital allocation and robust performance metrics, including a notable 25% CAGR in EPS over five years, position it for potential valuation gains. Despite being perceived as cyclical, URI’s structural advantages suggest significant upside, making it an undervalued opportunity according to Qualivian. Read the full article here.
InsiderEdge Highlights: December 2024’s Top Insider Trades
- Rezolute, Inc. ($RZLT): Reported on December 19, the CFO purchased 10,000 shares at $4.29/share for $42,900. Following the InsiderEdge signal, the stock price increased by +26.23% to $5.15.
- Tidewater Inc. ($TDW): Reported on December 17, a Director acquired 2,067 shares at $48.26/share for $99,758.17. After the InsiderEdge signal, the stock price climbed by +18.45% to $55.73.
- United States Antimony Corp. ($UAMY): Reported in December, a Director purchased 70,000 shares at $1.46/share for $102,000. Since the InsiderEdge signal, the stock price rose by +15.33% to $1.73.
Weekly Roundup: Not-So-Overpriced Stocks, Emerging Markets, ETFs Killing Mutual Funds?
This week’s news roundup covers several key topics:
- US Valuations Not Entirely Overpriced: The S&P 500’s forward P/E ratio of 21.9 is high compared to its 25-year average of 17.3 and other global markets. However, earnings growth has risen significantly, making current valuations less stretched than they might seem.
- Emerging Markets Require Context: Emerging markets have historically outperformed U.S. stocks, but since the 2008 crisis, the stronger U.S. dollar has led to their underperformance. Investors considering EMs should closely monitor dollar trends for opportunities.
- ETFs’ Tax Efficiency Crushing Mutual Funds: Active ETFs rarely distribute capital gains compared to mutual funds, making them more tax-efficient. With distributions averaging just 1.9% of NAV for ETFs in 2023 compared to 3.6% for mutual funds, the shift toward ETFs continues to gain momentum.
Read the full roundup post here.
Wishing you a great week ahead~
Barry Freeman
CEO @ BBAE
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.
