Investment Q&A

Q: I have all small positions in those equities … which one or 2 would you increase in size at the present moment?

Q: QXO stock is seeing a significant surge today primarily due to new coverage initiated by Wolfe Research.
Specifically:
* Wolfe Research began coverage of QXO with an "Outperform" rating and a price target of $44. This target represents a substantial increase (over 150%) from Thursday's closing price.
* Wolfe Research analysts cite QXO's potential for superior EBITDA growth as a key driver of their positive outlook, forecasting a 35% compound annual growth rate in EBITDA over the next five years.
* The company exhibits promising fundamentals, despite current profitability challenges, with a gross margin of 40.5% and a strong cash position.
This new positive coverage from a research firm has generated renewed optimism among investors, leading to a noticeable increase in QXO's stock price.

Do you think 44$ is a reasonable target ? This seems stretched a lot ?

Q: I found a company that I feel could be long term compounder and would appreciate your opinion. The CEO Brad Jacobs is stellar. Former founder of United Rentals and XPO. The CEO put in 1B of his family money. QXO will consolidate the building supply industry. And modernize warehousing and distribution with tech and AI. The company just started rolling several months ago so its early days. Huge TAM and secular tailwinds galore. Just completed an 11B deal to acquire Beacon Roofing.

Thanks.