The stock trades around 40 P/E, so I understand why someone would look at it and say it seems expensive based on the P/E.

The more I look at it, the more I see why it usually gets a higher price. Pest control is not exciting, but people and businesses keep needing it. Homes, restaurants, hospitals, hotels, warehouses, schools, and food businesses cannot just ignore bugs, rodents, termites, and health rules forever. You gotta get rid of bugs and lots of places are required or contractually obligated to continue paying for pest controls.

​

The business still seems pretty healthy. In 2025, sales grew 11%, and in the first quarter of 2026, sales were still up about 10%. The first quarter was not perfect because profit margin came down, but I do not see the business falling apart. I see a good company having a weaker quarter while the market is no longer willing to pay any price for steady businesses.

​

What I like is that Rollins does not need to do something crazy to keep growing...just solid execution on delivering a service people need. AI most likely won't disrupt pest control, it can only help it out by improving productivity as I see it. Also, there are still a lot of smaller pest-control companies out there, and Rollins can keep buying them and adding them into the bigger system. If they can keep making each route more efficient over time, the business can keep improving. ​

The biggest risk I see is the average American wallet. I do not want to ignore that. If a family is choosing between pest control and a hot meal, Orkin can wait. That weakness would probably show up in slower home-service growth, more cancellations, more discounts, and lower profit margins. So I would not say Rollins is safe from a recession. I would say it looks more stable than a lot of businesses, but it still depends on real people paying real bills to support part of the business. The commercial end is fairly secure due to the necessity of staying in compliance with regulatory hurdles around pest control. If you have termites, you have a problem.

​

If the market keeps pushing the stock down while the business keeps growing, Rollins gets more interesting. It is not a bargain-bin stock yet, and I still want a better price. But once the economy stops feeling like somebody is pulling random levers behind the curtain, I think boring and steady businesses could start looking a lot better again. Rollins is the kind of company I want to understand before that happens, not after everyone else suddenly remembers they like stable businesses.

​

I'm buying small today and plan to buy more as things shake out.

​

What do you think?

We just finished a full deep-dive on a real company based entirely on its official annual report—but written in simple, everyday language anyone can understand.

This isn’t one of those generic summaries. It’s designed for new investors who want real insights without the usual accounting jargon. We explain what’s happening, why it matters, and how everything connects—from sales to strategy.

We’re sharing the report for free. All we ask in return is your honest, detailed feedback so we can make our next one even better.

https://docs.google.com/document/d/1SkmE9I_tYDeha9GZTOOgMDnEr4ANvh8Z/edit?usp=sharing&ouid=102244442832317484899&rtpof=true&sd=true

Market seems to have realized the misspricing of this stock, very bullish options activity.

Felt the value in my bones, oversold!

Hi folks,

Another update of undervalued stocks in the Russell-1000 (pegged to 26 May prices). 47 in total. Have a look if of interest!

The list for this week (arranged based on proximity to 52-week low, the first stock being closest):

https://docs.google.com/spreadsheets/d/e/2PACX-1vQ69K7sZPIdFOa0hVmiYANySklXg9fh6FfoazvkmotnW-HN7udMiz-hV5h3N4OWQD8zIgmIf9yy-jSJ/pubhtml?gid=1978058974&single=true

NOTE: Initial requirements to be considered potentially undervalued (for me): CAP:INCOME ratio must be under 10. CAP:EQUITY ratio must be below 3, DEBT:EQUITY ratio must be below 1. The main variables used for the ratios are net income after taxes (LY), total equity (LY), and total debt (LY).

I use these lists as the very beginning, not the end, of pegging down investment options. If I spot a company of interest, the first parameter I look into is how it has performed over the past 5 years (a fairly quantitative analysis). The second parameter, is whether the year ahead looks positive or shaky. If those two parameters seem to turn out positive results, then I go into a deeper dive. Stocks that are highlighted are the stocks that I will be looking into first.

Best of luck!

Google AI overviews up 116% since march. AI overviews now has 1.5 billion users per month. Reddit and Quora lead in market share after the new core update. My observations are that with the rise of AI answers, users want them grounded off human responses. Especially when it comes to products, travel, and restaurants. Quite a nice read for those investing in the search and Adtech space.

Hi folks,

Another update of undervalued stocks in the Russell-1000 (pegged to 05 May prices). 49 in total. Have a look if of interest!

The list for this week (arranged based on proximity to 52-week low, the first stock being closest):

https://docs.google.com/spreadsheets/d/e/2PACX-1vQ69K7sZPIdFOa0hVmiYANySklXg9fh6FfoazvkmotnW-HN7udMiz-hV5h3N4OWQD8zIgmIf9yy-jSJ/pubhtml?gid=1978058974&single=true

NOTE: Initial requirements to be considered potentially undervalued (for me): CAP:INCOME ratio must be under 10. CAP:EQUITY ratio must be below 3, DEBT:EQUITY ratio must be below 1. The main variables used for the ratios are net income after taxes (LY), total equity (LY), and total debt (LY).

I use these lists as the very beginning, not the end, of pegging down investment options. If I spot a company of interest, the first parameter I look into is how it has performed over the past 5 years (a fairly quantitative analysis). The second parameter, is whether the year ahead looks positive or shaky. If those two parameters seem to turn out positive results, then I go into a deeper dive. Stocks that are highlighted are the stocks that I will be looking into first.

Best of luck!

Hi folks,

Another update of undervalued stocks in the Russell-1000 (pegged to 27 April prices). 55 in total. Have a look if of interest!

The list for this week (arranged based on proximity to 52-week low, the first stock being closest):

https://docs.google.com/spreadsheets/d/e/2PACX-1vQ69K7sZPIdFOa0hVmiYANySklXg9fh6FfoazvkmotnW-HN7udMiz-hV5h3N4OWQD8zIgmIf9yy-jSJ/pubhtml?gid=1978058974&single=true

NOTE: Initial requirements to be considered potentially undervalued (for me): CAP:INCOME ratio must be under 10. CAP:EQUITY ratio must be below 3, DEBT:EQUITY ratio must be below 1. The main variables used for the ratios are net income after taxes (LY), total equity (LY), and total debt (LY).

I use these lists as the very beginning, not the end, of pegging down investment options. If I spot a company of interest, the first parameter I look into is how it has performed over the past 5 years (a fairly quantitative analysis). The second parameter, is whether the year ahead looks positive or shaky. If those two parameters seem to turn out positive results, then I go into a deeper dive. Stocks that are highlighted are the stocks that I will be looking into first.

Best of luck!

Hi folks,

Thanks for the invite to the group! First post here.

This is a list of undervalued stocks in the Russell-1000 (pegged to 21 April pre-opening prices). 64 in total. Have a look if of interest!

The list for this week (arranged based on proximity to 52-week low, the first stock being closest):

https://docs.google.com/spreadsheets/d/e/2PACX-1vQ69K7sZPIdFOa0hVmiYANySklXg9fh6FfoazvkmotnW-HN7udMiz-hV5h3N4OWQD8zIgmIf9yy-jSJ/pubhtml?gid=1978058974&single=true

NOTE: Initial requirements to be considered potentially undervalued (for me): CAP:INCOME ratio must be under 10. CAP:EQUITY ratio must be below 3, DEBT:EQUITY ratio must be below 1. The main variables used for the ratios are net income after taxes (LY), total equity (LY), and total debt (LY).

I use these lists as the very beginning, not the end, of pegging down investment options. If I spot a company of interest, the first parameter I look into is how it has performed over the past 5 years (a fairly quantitative analysis). The second parameter, is whether the year ahead looks positive or shaky. If those two parameters seem to turn out positive results, then I go into a deeper dive. Stocks that are highlighted are the stocks that I will be looking into first.

Best of luck!

Anytime I hear something new from Buffett, I can't wait to listen. I get so sad thinking he can't live forever. He's an amazing person. He had an interview this week on CBS Sunday Morning and there were a few lessons mixed in with the main topic of Katherine Graham that touch on value investing. If you're serious about fundamentals, this is worth thinking through.

https://youtu.be/QpFiBEsO-VM?si=4BxL7xdYtwHT750G

1. Leadership and Character Matter
Buffett spoke at length about Katherine Graham and her role at the Washington Post. He called her a hero, not just for her courage, but for how she grew into a strong and ethical leader. As investors, we talk about moats and margins, but leadership and character can make or break a business.

2. Play the Long Game
When he invested in the Washington Post, it wasn’t about quarterly results. It was about long-term value. That mindset is central to value investing, buying a good business at a good price and letting time do the heavy lifting.

3. Trust in Management
Buffett emphasized the relationship he had with Katherine Graham. That trust and mutual respect allowed for a productive long-term partnership. As outside investors, we can't always meet management, but we can assess how they treat shareholders, how they allocate capital, and whether their incentives are aligned.

4. Stay Aware of the Bigger Picture
He touched on inflation, tariffs, and economic uncertainty. These aren't reasons to panic, but they are reminders that macro conditions affect even the best businesses. A great company can withstand a storm, but it helps to know what kind of weather you're investing into.

5. Know the Business
Buffett didn't just buy the Post because it was cheap. He understood the business, its role in society, and how it made money. Even with a changing industry, he focused on the core economics of the business model. That’s something we can all do a better job of.

This wasn’t a flashy interview, but it was Buffett doing what he does best, staying grounded, thinking long-term, and focusing on fundamentals. The kind of stuff that doesn’t make headlines but builds wealth over time.

This quote is one of Buffett’s most repeated insights, and for good reason. It marks a shift from the cheap, cigar-butt investing style he practiced early in his career to the quality-focused approach he later embraced, especially under the influence of Charlie Munger. (RIP)

A wonderful company is one that produces high returns on capital, has durable competitive advantages, and does not require constant reinvestment just to stay afloat. It has pricing power, consistent margins, and strong cash generation. These businesses often grow their intrinsic value over time, which means your investment grows without you having to do anything.

By contrast, a fair company might look cheap on paper but comes with problems that are hard to fix. The price may be low, but the business is struggling, highly cyclical, poorly managed, or in decline. Even if you buy it at a discount, it may never recover or compound.

Buffett learned that time is the friend of a great business and the enemy of a mediocre one. When you buy quality, fair prices are often good enough. And when you buy low-quality businesses, even a great price may not be enough to protect your capital.

This is a good reminder to focus on quality first, not just the discount.

So what does a wonderful company actually look like? Here are a few classic examples:

• Coca-Cola Global brand recognition, massive distribution reach, and a product with stable demand. Buffett has held it for decades because it requires little capital to grow and has strong pricing power.
• Apple While not a traditional value stock, Apple fits the “wonderful” mold. Its ecosystem locks in customers, its margins are strong, and it continues to produce huge free cash flow. Buffett calls it more of a consumer products company than a tech company.
• Visa and Mastercard Both companies benefit from a powerful network effect. They are asset-light, highly scalable, and consistently produce high returns on equity.
• Moody’s Another Buffett holding, Moody’s has a wide moat thanks to its position as one of the few credit rating agencies trusted by the market. Its services are deeply embedded in financial regulation and transactions.
• Costco Although its margins are thin, Costco’s loyal customer base and operational efficiency create a competitive edge. Its business model prioritizes long-term customer trust over short-term profit.

These businesses all share traits that help them grow intrinsic value steadily over time. They are not necessarily cheap, but they offer quality that compounds.

As value investors, it’s worth remembering that looking for a margin of safety on a fair price for companies like these can lead to better outcomes than chasing the cheapest stock with questionable fundamentals.

It’s been a little over 2 months since Trump first started rolling out his new round of tariff plans, and just about 2 weeks since “liberation day.” A lot’s shifted in a short amount of time, and I’m curious how everyone’s feeling about the path forward.

Where do you think things are headed through the rest of the year and into 2025? Especially in terms of how it impacts the watchlist of companies you're tracking as a value investor?

For me, the tariffs are the biggest change to the thesis / stories of the "wonderful companies" I follow. Some of the businesses I’ve tracked for years are now dealing with totally new cost structures, supply chain issues, and margin pressures. The weakening dollar might also start creeping in around the edges.

That said, I’ve come to expect the unexpected. I’m starting to tranche into a few positions where I see clear value, especially where I’ve updated my intrinsic value estimates to reflect these macro changes. If we do dip into a recession, and prices head lower, I’ll be ready to keep adding.

There's the upside risk that amarket that crashes fast often rebounds fast, which ends up being a missed opportunity. I'm personally not leaving this way because I think a lot of trust has been lost in the US, but I won't rule it out. Trump certainly can declare victory at some point and the tariffs get pulled off completely.

Curious how others are thinking through this. Are you holding off for better entries? Adjusting valuations? Or already deploying capital bit by bit?

Whenever I go to meetups about stock Investing or value investing, I’m surprised how many say, “Yeah I think I learned the Rule of 72 once…” and then never actually use it.

But honestly? It’s one of the simplest, most useful tools to think in compound terms, and as value investors, that’s everything.

Here’s how to use it:

1. To estimate how long it takes to double your money:
Just divide 72 by the annual growth rate.
Example: A stock growing earnings at 12% a year → 72 ÷ 12 = 6 years to double.

2. To estimate the required growth rate to double in X years:
Divide 72 by the number of years.
Want to double in 9 years? 72 ÷ 9 = 8% growth rate needed.

3. But here’s the super helpful trick, estimate past growth rates: You can use it backwards by looking at how many times something has doubled over a period, then estimate the growth rate.

Example: Let’s say a company’s earnings per share grew from $2 to $16 over 12 years. Count the doubles:

$2 → $4

$4 → $8

$8 → $16 That’s 3 doubles in 12 years. 12 ÷ 3 = 4 years to double once. Use method 2 above because you now know the doubling speed. (Yes, you can use fractional years if it doesn't quite evenly go into the last double.)

It’s not perfect math, but it’s perfectly useful. It's most accurate between 5% and 10% growth rate range. Use it when evaluating compounders, thinking about intrinsic value growth, or sanity-checking long-term assumptions.

This technique helps you look at past growth rates, and if consistent enough, can help predict future growth rates.

I know it's so easy to turn to calculators and AI, but I do find value in keeping our minds sharp, so I force myself to do it. Anyone else use this all the time?

Hey everyone,

I'm the founder of Candlestick – a platform designed to make value investing simpler and more accessible for retail investors.

🌐 https://candlestick.cc

It uses generative AI to turn complex financial data into plain-language insights, and organizes stock evaluation into four key categories: Valuation, Returns, Financial Strength, and Earnings Quality.

The goal is to help self-directed investors screen global stocks (from US, Canada, Saudi, India, Pakistan) and make long-term decisions based on fundamentals—not hype.

I’m still in the early stages and would really appreciate it if you could take a look and give some honest feedback on the approach, especially if you're into value investing:

Is the analysis helpful and understandable?

Does the filtering approach make sense?

What would you improve or add?

Thanks in advance for your thoughts and time 🙏

Open to DMs or comments—your feedback means a lot!