I've made the same decision a while ago and luckily got out over $200. It's s great business but needs to reinvest massively right now for future growth. That's a painful transition during a downtown. It's also just not cheap enough for what they'll be able to deliver.
With highly cyclical and capital intensive businesses, you really need to time it perfectly to maximise returns for the risk. Agreed on valuation too, if it was still at 18 times forward earnings today it would be a very different decision.
Appreciate you reading and sharing your view. That’s a fair perspective, and I agree TXN’s capital allocation discipline is among the best in the industry. For me, it ultimately comes down to this sort of business model and earnings unpredictability not aligning with my investment philosophy.
I've made the same decision a while ago and luckily got out over $200. It's s great business but needs to reinvest massively right now for future growth. That's a painful transition during a downtown. It's also just not cheap enough for what they'll be able to deliver.
With highly cyclical and capital intensive businesses, you really need to time it perfectly to maximise returns for the risk. Agreed on valuation too, if it was still at 18 times forward earnings today it would be a very different decision.
Appreciate you reading and sharing your view. That’s a fair perspective, and I agree TXN’s capital allocation discipline is among the best in the industry. For me, it ultimately comes down to this sort of business model and earnings unpredictability not aligning with my investment philosophy.