A World-Class Cash Machine Just Went on Sale
Let's take advantage of Mr. Market's manic-depressive mood swings
Let’s say I offered you an investment opportunity, based only on numbers - no narratives.
The opportunity: a business which grew revenues and earnings more than 20-fold over the last 10 years, including over 30% growth in both metrics last year. The business enjoys 80% gross profit margins, and over 30% returns on equity, with a wide and durable competitive moat.
At what valuation would you be willing to buy a stake in such a business?
For some context, over the past five years, Mr. Market has assigned a valuation ranging between roughly 20x - 40x trailing earnings. But today, you can purchase an ownership stake in this business at under 16x trailing earnings - the lowest price ever offered.
Is that something you’d be interested in?
I certainly am, and in full disclosure, I’ve already placed a bet on this business myself.
Today, I’ll explain why I believe Mr. Market has grown far too pessimistic on the future prospects of this world-class cash machine, and why I’m betting on a brighter future ahead.
Let’s get started…