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Strategies & Market Trends : Dividend Growth Investing and chit chat.
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jvincen2
To: chowder who wrote (1665)12/11/2021 7:55:06 AM
From: cemanuel1 Recommendation  Read Replies (2) of 2146
 
"If others feel against it I'm okay with that, I'm not trying to sell AVGO to people, I'm simply showing what I do and explaining why."

In message Message 33614480 I said, "their policy of growing the company through major M&A vs R&D worries me. They don't make small buys and all they need to be is wrong a time or two."

I've owned a lot of companies with slow growth that have turned to M&A where it hasn't panned out. Two recent examples are GILD and MO. GILD has made several in the past 4 years, none of which have resulted in revenue growth commensurate with the costs and MO had the Cronos and Juul deals, the second of which has been a disaster. Neither of those companies is in any real trouble but their recent M&A hasn't worked. And then there's T with the media acquisitions, particularly TWX.

AVGO has been right, repeatedly. And maybe I should just set aside my concern. As I also said, "maybe I'm being stupid." I'm not trying to tell people to avoid the company, just why I haven't picked it up despite every financial metric saying it's a great company I should buy - which I was very close to doing a couple of years ago when it was trading around $200.

I've left a lot of $$$ on the table not buying it then and I may be leaving a lot now. But I'm OK with that.
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