If you zoom out, the contrast is striking for me: Intuit is the definition of a compounder that has already compounded: sticky ecosystem, enviable margins, but you’re buying it at a premium multiple with FCF yield below Treasuries. That’s basically paying for safety.
Nu Holdings, on the other hand, is where the asymmetry lives: 80%+ revenue CAGR over a decade, pristine balance sheet, insiders holding real skin in the game, and now throwing off a 5.7% FCF yield. That combination is rare in emerging markets: hyper-growth + actual cash compounding. Great post.
Actually I had thought about this as well, but doesn't come up with a different versions for banks yet. Any suggestions? Two options: the threshold can be changed or the metrics can be different.
If you zoom out, the contrast is striking for me: Intuit is the definition of a compounder that has already compounded: sticky ecosystem, enviable margins, but you’re buying it at a premium multiple with FCF yield below Treasuries. That’s basically paying for safety.
Nu Holdings, on the other hand, is where the asymmetry lives: 80%+ revenue CAGR over a decade, pristine balance sheet, insiders holding real skin in the game, and now throwing off a 5.7% FCF yield. That combination is rare in emerging markets: hyper-growth + actual cash compounding. Great post.
Your standard check like Net Debt/EBITDA does not work for banks. I think to have to adapt them when analysing banks/fintech.
Actually I had thought about this as well, but doesn't come up with a different versions for banks yet. Any suggestions? Two options: the threshold can be changed or the metrics can be different.