If you are looking for the best ideas for your portfolio you may want to consider some of Greenhaven Road Capital‘s top stock picks. Greenhaven Road Capital, an investment management firm, is bullish on Nintendo (NYSE:NTDOY) stock. In its Q3 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Nintendo (NYSE:NTDOY) stock. Nintendo (NYSE:NTDOY) is a video game company based in Japan.
On October 13, 2019, Greenhaven Road Capital had released its Q3 2019 investor letter. Nintendo (NYSE:NTDOY) stock has posted a return of 37% in the trailing one year period, outperforming the S&P 500 Index which returned 15.4% in the same period. This suggests that the investment firm was right in its decision.
Greenhaven’s fund posted a return of less than 1% in the third quarter of 2019, underperforming the S&P 500 Index which returned 1.7% in the same quarter. Let’s take a look at comments made by Greenhaven Road Capital about Nintendo (NYSE:NTDOY) in the Q3 2019 investor letter.
“Historically, Nintendo (NTDOY) has not been a high-quality business as almost all of its revenue was tied to the booms and busts of the video game console business. Unlike our “status quo” bets, our bet here is that Nintendo is becoming a high-quality business. The transformation is being driven by Nintendo’s transition to the Switch gaming platform, which should have a significantly longer life than the traditional video game consoles. Nintendo is also layering on significant subscription revenue and better monetization of IP in mobile games. These changes should provide more recurring revenues with higher margins. If this transition continues to progress, Nintendo will have revenue growth, margin improvement, and multiple expansion.”
This isn’t the first time Greenhaven Road Capital talked about Nintendo (NYSE:NTDOY) favorably either. The investment firm has been a long time Nintendo (NYSE:NTDOY) bull. In August 2020, we shared Greenhaven Road Capital’s bullish Nintendo (NYSE:NTDOY) thesis in this article.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.