Investing is an incredible pursuit of growth and self improvement Humbling to hear an investor with 40% CAGR over 20yrs discuss he’s still making mistakes and learning from them

Love learning about stuff like this Ah this is why yoga in the middle of the day feels so productive and refreshing for the next half of the day

These are the sorts of paragraphs I look for when reading write ups. @JoeValue summarises many hours of work in a few simple lines. I made a quick buck on Tobila a few months ago but maybe I should do some deeper work on it as a permanent position.

Thank you so much Javen! 🙏

Thanks Micheal. Great meeting you on the trip 🙌

Conversations with exceptional investors - my takeaways: Growth - Should be more willing to pay for growth, Cyclicals - too quick to put cyclicals outside my circle of competence, A few market heuristics, Position Sizing - it can affect behaviour

I looked at $FOUR recently in detail, and it’s not as good as it looks IMO. Big debt, poor Managment, hidden costs and impacts of new acquisitions, little to no organic growth. Think it’s quite messy and screens better than it is. I’m not short and not proposing that either, just trying to flag it’s worth digging deep for this one. It deserves caution and strongly recommend chucking in the financial statements into AI and asking it for red flags and risks. @stonkmetal can probably vouch for this view in greater detail Seems there’s a bit of an echo chamber on this name and it screens cheap Hope this helps at least someone

Most of my research goes nowhere. Hundreds of companies screened. A handful researched. One or two bought. Nobody posts about the hundreds.

Greenblatt's special situations class starts with one rule. If you can't say in a sentence why it's mispriced, move on.

Already 17 Q&A's with detailed answers regarding this article on my blog. Worth checking out if you're interesting in Tobila. specialsituationsglobalequit…

Lots of questions on operating margins. FY26 was always a heavy spending year. This is my answer: 2019–21 looks unusually strong rather than representative of Tobila’s steady-state economics. Operating margins of ~40% benefited from the business being more heavily weighted to the extremely scalable mobile/carrier business, alongside relatively low marketing and customer-acquisition spending. Since then, the growing Solutions business has changed the mix. In particular, TobilaPhone Biz has upfront hardware, sales and customer-acquisition costs, which suppress margins as the installed base grows. Those economics should improve as customers renew because much of that upfront acquisition cost does not recur. So I’d think of low-to-mid 30% consolidated operating margins as a reasonable normalised level for the current business mix, rather than assuming a return to the ~40% margins of 2019–21. The underlying Solutions economics may actually be better than the reported segment economics suggest: once hardware and acquisition costs are stripped out, mature customers could plausibly generate high-30s operating margins, although Tobila hasn’t stated this anywhere. FY26 looks like an unusually heavy investment year and that was guided last year, with spending to accelerate new product developments and increase sales team, plus office moves. Managment have guided for much lower hiring in FY27, so I expect low 30s op margins in FY27 and thereafter, with further upside possible as the Solutions customer base matures and renewals become a greater proportion of revenue

Thank you! 🙏

Great feedback on my latest article! Will update again once I’ve spoken with Managment

Munger kept a grid of over 100 mental models. Why? To run a decision through many before acting. One model on its own will usually confirm what you already think. modelthinkers.com/mental-mod…

Mathematically this should happen after a 5 year period of no increase in annual sales for Biz (flat sales YoY). While annual sales keep beating the previous year (which they have done each year so far and at an increasing rate), the income statement will lag the FCF, because the contract liabilities are building faster on the balance sheet than they are being recognised on the income statement. I think we are a long way from this happening, but the valuation is so low that you're not paying for the expectation that growth in Biz will continue for 10 years, or even 3 years of growth, as I just don't think the market has priced in the growth. I think at this valuation you are just paying a good price for the core high margins cash cow business. But of course this is my opinion... Thanks for the great question!

At some point revenue should accelerate in line with FCF (… with a delay). When do you expect this to happen?