TIP837: Adobe, Lululemon, PayPal – Are our Biggest Losers a Buy Now? w/ Daniel Mahncke & Shawn O’Malley

**SPEAKER_1** (0:00)
You're listening to TIP.

**Daniel Mahncke** (0:03)
Welcome back to The Investor's Podcast. Today's episode is number 837, and it's also a little anniversary because it's the 19th episode of our stock research episodes, and the last stock I pitched to you, Shawn, was DLocal.

**Shawn O'Malley** (0:17)
Yeah, you tortured me with another payments company. But I got to admit, for this one, it was a brilliant business. You're earning something like 50% plus, high returns on capital, massive cash flows, and all that for a very reasonable price with a mid-teen multiple.

**Daniel Mahncke** (0:30)
Well, today, I have something different to talk to you with. And instead of looking at a single stock, I want to go through a couple of stocks that we covered here on the show at some point. And some of them we used to own, but then we sold them.
Some we still hold, but I feel like we should give an update because it's been some time. And some we have covered here on the show, but we never owned them. In fact, I only picked out stocks that tanked a lot since we looked at them. And we'll sort of analyze why they tanked, what we all can learn from those situations, and whether those stocks are worth buying at today's prices.

**Shawn O'Malley** (1:02)
Well, if you enjoy laughing at our mistakes, this should be a fun one for you.

**SPEAKER_1** (1:10)
Since 2014, with more than 200 million downloads, we have interviewed the world's best investors, studied deeply the principles of value investing, and uncovered many compelling investment opportunities.
We focus on understanding businesses and intrinsic value, investing accordingly, and sharing everything we learn with you. This show is not investment advice. It's intended for informational and entertainment purposes only. All opinions expressed by hosts and guests are solely their own, and they may have investments in the securities discussed. Now for your hosts, Shawn O'Malley and Daniel Mahncke.

**Daniel Mahncke** (1:56)
In case you don't follow The Investor's Podcast for too long yet, on this show, my co-host Kyle and I alternate on pitching you, Shawn, our favorite new stock ideas each week. And the end goal is to basically find great businesses that we can integrate into our intrinsic value portfolio of stocks. Today though, as you heard in the introduction, we'll do something slightly different by looking back at stocks that we covered in the past and especially the ones that unfortunately turned against us. And I'm honestly not quite sure where we want to start here today because if we first discuss the companies that we actually own or owned in the intrinsic value portfolio, we might get into a bad mood. But if we cover them last, we end on a bad note. So I would say we just start with the companies that we used to own but sold, sort of our biggest mistakes and then we go to the companies that we covered but wisely decided against owning. And who knows, perhaps they are more attractive at today's prices and we can discuss them looking at it from today's angle.

**Shawn O'Malley** (2:54)
And I want to say that on Saturday, we'll do an episode on our biggest winners too. So hopefully you don't get the feeling that we have no clue what we're doing here and we can have a sober reflection on the mistakes we've made.

**Daniel Mahncke** (3:06)
Speaking of Saturdays, why don't you also tell the audience where they should be on Saturday, the 19th of September?

**Shawn O'Malley** (3:14)
It's a great point, Daniel. We hope that many of you will join us in midtown Manhattan on that day to attend our Intrinsic Value Conference. Obviously, the two of us will be on stage alongside Kyle as well. And we have some of the brightest minds of our mastermind community of investors that will be giving presentations. So it should be great. If you want to join us and network with a really thoughtful group of value investors, people are calling it the Value Investing Event of the Year. That's just the rumor on the street. Head to intrinsicvalueconference.com to purchase your ticket before they sell out.

**Daniel Mahncke** (3:49)
I'm excited already, I gotta say. Obviously, it's also my first time in York City. So we have a great venue and also a lot of great people that I look forward to seeing again. I would be surprised if there are not a lot of people showing up there. We also saw in Omaha earlier this year. But enough of that, I would say we should get into it. And I want to actually start by giving another introduction to how exactly the Intrinsic Value Portfolio works. And I think this will be particularly important today because there will be positions that we discuss which one of us is or was more bullish than the other one. So the basics. Basically, the Intrinsic Value Portfolio is a shared portfolio that Shawn, Kyle and I manage. And the way we handle this is basically by a simple rule. So the portfolio is obviously a paid portfolio, since we don't give any financial advice, nor do we actually manage money. However, each of the positions owned in the portfolio has to be in the personal portfolio of at least one of us hosts. Some are obviously in all of our portfolios, but the main rule, one of us has to own the company. So for all the stocks in our Intrinsic Value Portfolio and the ones that we discussed today, you can be sure that we actually lost money on them.