Ideas
Sold Kohl's after valuation gap closed.
Kohl's was a Ben Graham-style deep-value/cigar-butt trade bought at a discount to tangible book value with a margin of safety and limited downside. After the stock spiked over 200% and the price-value dislocation closed, he sold almost the entire position because Kohl's is not a great long-term compounder; he would take profits and move on rather than hold it for the long term.
Expensive market warrants caution.
The broad market is expensive and euphoric, with major indexes near highs and few value opportunities. Geopolitical unknowns involving Russia/NATO, China/US, and a potential Taiwan conflict add risk. He advises caution, avoiding wild risks, and investing as if the worst is yet to come, favoring stable, understandable, dividend-paying businesses.
Still long Centene; Medicaid fears overdone.
Centene is still the second-largest portfolio position. It is a boring health insurer hurt by Trump administration Medicaid/Medicare changes and its guidance withdrawal, which created fear, but the EPS math remains analyzable. The sector is unloved, Buffett's UnitedHealth purchase highlighted its value, and Centene can reprice/raise prices in its markets; margins should be defensible, it has a long track record of consistent earnings and no going-concern risk, so he expects it to outperform in coming quarters.
Cheap UnitedHealth plus Buffett stake attractive.
UnitedHealth is the largest portfolio position and very cheap with a dividend. It has faced extraordinary rough patches, including the CEO assassination, ethical/regulatory scrutiny, and negative sentiment, but underlying economics are good, regulatory matters often resolve with payments or operational fixes, and new leadership is moving in the right direction. Buffett's $1.5 billion stake in UnitedHealth validates the unloved health insurer sector, and he expects it to outperform the market in coming quarters.
Unloved US health insurers are cheap.
Large US health insurers provide a ubiquitous service with few alternatives for Americans, so they will not disappear even if Trump administration policies hurt earnings. They trade at very low valuations with no going-concern risk, defensible moats, locked-in customers, and pricing power; Centene can reprice, and UnitedHealth has a dividend. Extreme negative sentiment and long histories of consistent earnings create an opportunity to buy productive assets at a huge discount.
Iconic Nike brand and R&D remain strong.
Nike is a great, iconic American brand that invests in R&D and is developing 3D-printed shoes for better fit. Footwear is an important replacement purchase, and past product/design missteps are fixable. When it traded at its lowest level in about 20 years in April, it was a safe value investment and has since dramatically outperformed the S&P 500.
Cash is defensible when markets expensive.
With markets expensive and few compelling opportunities, investors should not feel obligated to trade. Sitting on cash and saying no is a defensible strategy, especially when capital is burning a hole in one's pocket; patience and waiting for better value dislocations can improve returns.
Boring bread maker offers defensive dividend.
Flowers Foods is a boring, stable defensive staple company that makes Wonderbread, Dave's Killer Bread, and other bread products and pays a dividend. Even amid wars or geopolitical conflict, people will still buy milk, eggs, and bread. It provides a product and business investors can understand and has beaten the S&P 500 since his last appearance, making it suitable when the market is expensive and risks are high.
This The David Lin Report video, published August 18, 2025,
features Emmanuel Lemelson
discussing KSS, SPY, CNC, UNH, IHF, NKE, CASH, FLO.
8 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Emmanuel Lemelson
· Tickers:
KSS,
SPY,
CNC,
UNH,
IHF,
NKE,
CASH,
FLO
