Value Investing with Options: Selling Puts to Buy Wonderful Businesses at Better Prices

Value Investing with Options: Selling Puts to Buy Wonderful Businesses at Better Prices | S08 E18 – The Acquirers Podcast

Mentioned

Bullish

OWL— Asset management company with stable permanent capital structure, investment grade credit, strong free cash flow, and high dividend yield (~9.5%). Options are attractively priced due to headline risk despite solid business fundamentals.
NOW— ServiceNow is positioned as an AI beneficiary due to its role in IT infrastructure. Stock got demolished from highs but fundamentals remain strong with revenue growth, good balance sheet, and trading at historically low multiples. Management addressing stock-based compensation concerns.
AMZN— Amazon at $200 presented attractive opportunity with multiple growth drivers: AWS as crown jewel, advertising business larger than YouTube and growing rapidly, entering third-party logistics competing with UPS/FedEx. High-return AI infrastructure investments justify current spending despite near-term free cash flow pressure.
DATACENTER— Hyperscalers investing hundreds of billions in CapEx primarily going to data centers, creating significant job growth and opportunities across multiple companies and sectors in the data center ecosystem.

Bearish

TSLA— Tesla faces competitive challenges from heavily subsidized Chinese EV manufacturers like BYD. Chinese EVs are described as beautiful and much cheaper, with significant government subsidies creating difficult competitive dynamics.

Not investment advice.