Christian Schwarzer Velazquez @Khrix69: "🔥💰The best companies in the..."

Spain

🔥💰The best companies in the world don't make money from their Main Products! 💸 Well, the market finally seems to have found support at the 100 EMA, so we can get back to what's really important, which is continuing to provide value. Yes, as you've read in the Title. The best companies in the world don't make money from their main products. The best companies in the world are those that sell you a main product and make money from the maintenance services and the consumables that must be used periodically. Something that obsesses me are the parameters. Parameters to filter companies and make my circle of companies smaller and smaller, as I become more and more demanding. This way, I only get the excellent ones. One of these parameters is called: Recurring Revenues. Companies with recurring revenues are highly valued by the market. Normally, these companies have an optically expensive multiple, because the market is valuing what it values most, forgive the redundancy: predictability. That's why companies with recurring revenues are very predictable, therefore, the market is able to include those future benefits in the valuation and discount those cash flows to a greater extent thanks to their stability and visibility. $MSCI (MSCI Inc) is a company that I love, of extreme quality, and that is reflected in this parameter, where recurring revenues represent approximately 95% of total revenues. But going back to our topic, let's talk about companies that sell you a product, but make money from the services they provide for the maintenance of that product or with the consumables necessary for its use. $ISRG (Intuitive Surgical Inc) is a company that meets all these aspects. Magnificent in every way. It has clear competitive advantages, with a TOP product, difficult to replicate, with high entry barriers regulated by the FDA, and that is already critical in many operations. Thanks to the Da Vinci machines, surgical procedures are safer and can perform maneuvers that, with the human pulse, would be risky for the patient. Anyone would think that the company's profit is in selling these high-tech medical machines. Well, no: in fact, it's what they make the least money from in the long term. The annual recurring revenues in the form of consumables and maintenance services represent, after 5 years, more than what the machine itself cost. When $ISRG sells a machine, it sells a one-time product that can last 10 years, but what's really interesting is the robot's maintenance. Another company that I find fascinating in this sense is $OTIS (Otis Worldwide Corp) Who hasn't gotten into an elevator and seen the $OTIS logo? Hotels, offices, corporate buildings around the world. All these segments are operated by a company that sells elevators, but makes money from their maintenance. And you can imagine how critical, important, and even mandatory this service is for their clients. It's also fascinating that they are the same ones who operate the escalators that might be in your city's subway. Again, maintenance, repairs, inspections are needed… $TGYM.MI (Technogym S.p.A) is another good example. Once again, they provide exercise machines for gyms, especially hotels and then sell them a service membership where they don't have to worry if a machine breaks down, as the technical service comes to repair it at no additional cost. In some cases, they even replace it for you. When you sell a product, you have to sell another one again. But with recurring revenues derived from services, you ensure free cash flow straight into your veins and visibility for the coming years. $OTIS $ISRG and $TGYM.MI are companies that sell you machinery and then make money from post-sale services. Even so, they are not “asset-light” companies, and recurring revenues are between 60% and 80%. As I mentioned at the beginning, there are asset-light companies, light on assets, that are capable of having recurring revenues of up to 95%, as is the case with $MSCI Companies like $ADBE (Adobe Systems Inc), $MSFT (Microsoft) or $NFLX (Netflix, Inc.) saw this early and switched from a business model based on selling software licenses to a recurring subscription model, cheaper for the customer, more flexible and affordable, but much more profitable for them in the long term, granting them predictable and sustained cash flow for the years to come. When you're going to include a Key Parameter, to know whether to buy a company or not, add this parameter, Recurring Revenues, and you'll see how your results improve! Another one that I'll talk about soon and how it fully meets these characteristics is the one I've already talked about before, but many still don't see it or understand it: $TSLA (Tesla Motors, Inc.) It's positioning itself to create recurring revenues in the next Decade. That's all for today. I hope I've provided you with value. Best regards, Christian $SPX500 $NSDQ100 $BTC $TSLA