Love the posts and in a similiar position (started buying at 9 and kept increasing the avg to 11.5 as I got more comfortable with the company and made it a 7% position).
I think you are spot on with the research and potentially extremely conservative in your bull case. If interest rates inevitably subside, the credit product works ok and they keep executing, 30%+ profit margins with 20% growth seems reasonable.
Your conclusion makes sense. There was a lot of margin of safety at 9 and still a lot of optionally still worth holding for.
Yea that’s true, it certainly could be too conservative. I could see a scenario where their financial expenses drop significantly and their margins expand much more than I anticipated. I would welcome that scenario.
Love the posts and in a similiar position (started buying at 9 and kept increasing the avg to 11.5 as I got more comfortable with the company and made it a 7% position).
I think you are spot on with the research and potentially extremely conservative in your bull case. If interest rates inevitably subside, the credit product works ok and they keep executing, 30%+ profit margins with 20% growth seems reasonable.
Your conclusion makes sense. There was a lot of margin of safety at 9 and still a lot of optionally still worth holding for.
Happy new year!
Thank you very much!
Yea that’s true, it certainly could be too conservative. I could see a scenario where their financial expenses drop significantly and their margins expand much more than I anticipated. I would welcome that scenario.
Happy new year to you as well!