Launching a new Substack focused on large cap companies
Hi everyone, hope you had a nice weekend.
I have a relatively important announcement regarding my Substack newsletter. After speaking with a couple dozen of my Substack subscribers over the past few months I’ve decided to launch a new Substack focused exclusively on large & mega cap stocks while keeping my current Substack focused exclusively on small & mid cap stocks aka “smid” caps.
If you are receiving this email than you are currently a free or paid subscriber for what used to be called Jonah’s Deep Dives which is now called “Jonah’s Deep Dives on Small & Mid Caps” and here’s the new link… http://smidcapdeepdives.substack.com
If you are interested in becoming a free or paid subscriber to “Deep dives on large & mega caps” than you can use the box below or you can click on this link… http://largecapdeepdives.substack.com
Hopefully this isn’t too confusing but if it is, please feel free to email me at jonah@luptoncapital.com
For anyone that isn’t familiar with the terms above, every public company has a market cap which is simply the current stock price multiplied by the # of shares outstanding. Depending on a company’s market cap they are considered a small cap, mid cap or large cap.
Small cap companies have market caps between $250 million and $2 billion
Mid cap companies have market caps between $2 billion and $10 billion
Large cap companies have market caps between $10 billion and $200 billion
Mega cap companies have market caps above $200 billion but since there are only ~25 mega cap companies in the US it’s unlikely that I’ll writeup about them too often
Small & mid caps are typically more risky but provide more upside because they are growing faster.
Large & mega caps are typically more stable/mature but provide less upside because they are growing slower.
Some investors prefer the smaller companies and some prefer the bigger companies. Some investors (like myself) invest in both however my portfolio is weighted towards the mid caps. My sweet spot is companies with market caps between $2-20 billion however I’ll still invest in companies that are outside of that range.
In my investment portfolio I currently have 30 positions which might sound like alot but my top 10 positions represent 65% of my portfolio and my top 15 positions represent 82% of my portfolio so I’m clearly weighted towards my highest conviction stocks.
Out of those 30 positions, based on their current market cap… 14 of them are mid caps, 8 of them are small caps and 8 of them are large caps. The average market cap across all 30 positions is $12.4 billion however the weighted average market cap is slightly higher at $15.7 billion and this is because MELI and UBER are both top 5 positions with market caps above $60 billion.
I find opportunities in companies of all sizes but many investors don’t have the same time horizon or risk tolerance as me so they tend to focus on only large caps ie more established companies. Considering this, I felt it was prudent to launch a second Substack focused exclusively on larger companies with market caps above $10 billion.
Over the past 18 months I’ve done deep dive writeups on 60+ companies and many of them qualify as large caps such as UBER, ABNB, CRWD, DDOG, MBLY, MELI, NET, SHOP, SNOW, ALB, NU, CPNG, TTD, SQ, TWLO and TSLA. These are all incredible companies but some investors say they’re too big and therefore they focus on the small/mid caps which might provide better returns over the long term.
Example of some small/mid cap companies I have written about over the past 18 months include CELH, SWAV, LNTH, FOUR, ONON, XPOF, CROX, INMD, GLBE, SDGR, HIMS, FIGS, FLNC, TDW, DOCN, PGNY, PRCT and DUOL. This is another group of incredible companies but they are less proven than the large caps and therefore carry more risks especially in an unpredictable macro environment.
I believe it adds more value for more investors by having two different Substack’s focused on companies with market caps above $10 billion and companies with market caps below $10 billion.
I hope this all makes sense. Feel free to reach out if you need further clarification.
My next deep dive writeup for the small/mid caps will go out tomorrow and then my first writeup for the large caps will go out by end of week.
If you’re interested in the large cap deep dives, I’m offering a special deal for the next few days… signup today and lock-in your annual rate for $150/year because after this deal is over the price will increase to $200/year — or you can just do $20/month.
As a reminder, in addition to the 3-4 deep dive writeups per month, all paying subscribers (for both Substack’s) get full access to my investment portfolio (up +31.8% YTD) as well as my investment models and my daily webcasts at 10:30am and 3:30pm (including the recordings for both). I’m also looking into the new Substack Notes for paying subscribers as well as a quarterly webcast where I can provide updates and analysis on recent deep dives and earnings reports.
Okay, time to subscribe…
Have a great week and look for those new deep dives in the next few days :)
Regards,
Jonah Lupton