VIST
📈 Vista has shown high returns on invested capital and excellent growth in recent years.
📊 It maintains good profitability margins, which makes it stand out compared to larger competitors in the industry.
🧐 Despite being considered a good company, the speaker does not hold it in his portfolio due to personal risk and understanding preferences.
@invertirdesdecasa:
“Yesterday, on the YouTube channel of Invertir Desde Casa, we published, as every Sunday, the video where it is always a bit longer on Sundays. We do a deeper analysis, of course, of what is happening with a particular company. You can find the title of the video now on the channel; it is ‘S&P Enters Correction,’ and in that same video, we analyzed a company that you will surely know, which is Vista Oil & Gas. In general terms, you can watch the video, of course, but we did an analysis of what is happening today, what you are seeing a bit in the news. I am not telling you anything new, mostly with the headlines filled with what Donald Trump is doing or not doing, what he says he does, what he says he will stop doing, and a lot of other things that are putting some clouds in the future, at least in the short term, of the US economy, interest rates, protectionist measures, and a lot of other things. Again, the video is there if you want to see it, but truthfully, I couldn’t make a video solely on politics; I would really feel like it’s a wasted video. So, in that same video, after making a conclusion, I analyzed a company, which, as I said, is Vista Oil & Gas. Firstly, because I believe that crises, eventually, if we get to see one—because it seems we are far from seeing one, at least as of today, surely it will come at some point—but crises, for me, are transfers of wealth. What do I mean? Nothing is really destroyed, or rather, of course, in the short term, in terms of market value, there are large fluctuations and anything can happen, but in the long term, you have seen that wealth continues to be generated, continues to grow. And well, there are plenty of examples to tell you that after all that has happened, there are many people, many investors who have made a lot of money with investments. That’s why we analyzed Vista Oil & Gas in this video that I’m telling you about, because, well, firstly, it’s a value investing channel aimed at everyone, but I live in Argentina, so many people from Latin America and many people from Spain, many people from parts of the world that I would never have imagined I could be communicating with. But we analyzed this company, and again, you can see the video. It’s the third time I’ve said it, but my conclusion was it’s a good company, and it’s not the first time I’ve said it, let’s be clear. We have been following Vista for a good while. Vista seems to me an excellent company, but I said I don’t have it in my portfolio. I try in the videos to be as transparent as possible without arousing suspicion, of course. I say just enough to not generate any type of date, but to tell you I have this company, I don’t have this company, so you know, eventually, nothing, where I’m speaking from. And I commented that in the case of Vista, what I came to tell you, what I came for is that a subscriber of the channel, and here I am going to read, sorry, so I don’t forget badly, I don’t like to forget names, Cristian Gómez from Mar del Plata, from La Feliz, left me a comment. Of course, I won’t read it verbatim, but it said, ‘Arturo, I have seen you in this and in a lot of videos say this is a good company, an excellent business, but you don’t have it in your portfolio, and the question I want to ask you is why do you do it? Why don’t you have it in the portfolio despite it being a good company? What worries you? What doesn’t add up?’ And it seemed to me an excellent question that, of course, answering it in two or three lines seemed very difficult, and I think it can add a lot of value to everyone in general. Of course, my point of view, don’t think that, for example, the fact that I don’t have a company in my portfolio means that the company is destined to fail, because nothing could be further from the truth. I have been wrong thousands of times, and surely I will be wrong again, but I try to study and I try to understand these issues, and I think we can talk about this. Vista, and following the example that Cristian Gómez was asking me about, I don’t want to forget, Cristian Gómez was asking me, Vista has all these things that I am commenting on. It has high returns, or at least in recent years, with the average capital invested or of the investors put into Vista’s business. Besides, besides having had excellent growth, besides having had or having good profitability margins, which is why, even compared to much heavier players in the industry, well, that is also a plus perhaps for Vista because it is less bureaucratic, it is more agile because it is a bit smaller. That, for me, makes it a good company, makes it a good business, undoubtedly. The numbers tell you that. Of course, you have to have a bit of accounting to understand this about return on capital, to understand the degree of leverage, if it is a healthy leverage or not, but don’t think it’s something impossible to learn or impossible to understand. In fact, in the investment course, people who have no knowledge of accounting learn it; it can be understood. But that is only one of the parts, and in fact, the question they asked me was why do you say that a company is a good business or a business that you like and at the same time you don’t have it in your portfolio? I understand that someone may worry about saying, ‘Is this person saying something that is not B?’ They may worry because they say, ‘I’m seeing something, I’m missing something that I’m not seeing before making an investment decision,’ and a lot of things. And the truth is that there is another value judgment that is still missing when deciding whether or not to buy a company, a financial asset, let’s call it. I talk a lot about companies because I like companies much more than bonds, companies, let alone commodities, let alone cryptos, because they retain earnings, they can grow in a compound way, and a lot of other things. But the point is, why decide if it goes into your portfolio or not, or as the thumbnail image says, ‘Don’t let them pass,’ that is, when one is letting a good investment opportunity pass and when one is doing something intelligent by not investing in a company even though it is a good company. I hope it has been understood, and all this is reduced to the other part of the equation that we are missing, yes, which is mostly a matter of valuation. But be careful, I anticipate from now on because I don’t know if there are people who stay until the end of the video, I anticipate, I am not saying, I am not saying with this that Vista Oil is excessively overvalued, I am not saying this, but if it is a matter, I clarify, I am not saying this, if it is a matter of valuation.”
Watch the exact part of the YouTube video where the stock is discussed here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Vista Oil & Gas (VIST) at the following link. VIST stock.
