I've seen many folks complain that they haven't found great ideas lately (some even 1YR+).
That's just not true if you venture outside the US.
But that's scary.
Here's what you do: find simple businesses
For example, Stock Exchanges
THREAD: 6 Stock Exchange Ideas
That's just not true if you venture outside the US.
But that's scary.
Here's what you do: find simple businesses
For example, Stock Exchanges
THREAD: 6 Stock Exchange Ideas
1/ Why Stock Exchanges?
Stock Exchanges are simple business that don't change (too much) depending on geography.
Plus, they're predisposed to monopoly/network-effect benefits as more people use a specific exchange.
Also, exchanges are as old as the 17th century (Lindy).
Stock Exchanges are simple business that don't change (too much) depending on geography.
Plus, they're predisposed to monopoly/network-effect benefits as more people use a specific exchange.
Also, exchanges are as old as the 17th century (Lindy).
2/ Hong Kong $HKEX/388
World's largest exchange by market cap and and listed companies.
Stats:
- 96% GM
- 73% EBIT margin
- Almost no share dilution
- HK gov't largest shareholder (don't want to see it fail)
- 30% ROC
- 40x Normalized Earnings
World's largest exchange by market cap and and listed companies.
Stats:
- 96% GM
- 73% EBIT margin
- Almost no share dilution
- HK gov't largest shareholder (don't want to see it fail)
- 30% ROC
- 40x Normalized Earnings
3/ London Stock Exchange $LSEG
Founded in 1801, LSEG is one of the world's oldest exchanges.
Stats:
- 90% GM
- 40% EBIT margin
- 15% ROC
- 27.5x Normalized Earnings
Founded in 1801, LSEG is one of the world's oldest exchanges.
Stats:
- 90% GM
- 40% EBIT margin
- 15% ROC
- 27.5x Normalized Earnings
4/ Tel Aviv Stock Exchange $TASE
TASE is Israel's only public stock exchange. Talk about a monopoly!!
Some stats:
- 100% GM
- 16% EBIT margin
- $95M in net cash
- 8% ROC
- 29x EBIT
TASE is Israel's only public stock exchange. Talk about a monopoly!!
Some stats:
- 100% GM
- 16% EBIT margin
- $95M in net cash
- 8% ROC
- 29x EBIT
5/ Philippine Stock Exchange $PSE
Philippine's national stock exchange (monopoly) created in 1992, so relatively new.
Some stats:
- 80% GM
- 50% EBIT margins
- 15% ROE
- 15x LTM EBITDA
- $90M net cash w/ no LT debt
Philippine's national stock exchange (monopoly) created in 1992, so relatively new.
Some stats:
- 80% GM
- 50% EBIT margins
- 15% ROE
- 15x LTM EBITDA
- $90M net cash w/ no LT debt
6/ Kazakhstan Stock Exchange $KASE
Kazakhstan's largest exchange founded in late 90s. While one of the more off-the-beaten-path ideas, the company's metrics are insane:
- 98% GM
- 57% EBIT margins
- Trades 4.6x LTM EBIT
Kazakhstan's largest exchange founded in late 90s. While one of the more off-the-beaten-path ideas, the company's metrics are insane:
- 98% GM
- 57% EBIT margins
- Trades 4.6x LTM EBIT
7/ Moscow Exchange $MOEX
Russia's largest stock market exchange w/ $5B market cap. Again, a monopoly-like business
- 100% GM
- 67% EBIT margin
- 23% ROC
- Trades for ~14x NTM FCF
Russia's largest stock market exchange w/ $5B market cap. Again, a monopoly-like business
- 100% GM
- 67% EBIT margin
- 23% ROC
- Trades for ~14x NTM FCF
End/ I hope you enjoyed this thread.
If it makes you study even *one* ex-US company I've done my job.
Also, if you want write-ups on companies like this (fantastic ex-US businesses) subscribe to my Substack. It's free.
New Ideas Every Week.
macroops.substack.com
If it makes you study even *one* ex-US company I've done my job.
Also, if you want write-ups on companies like this (fantastic ex-US businesses) subscribe to my Substack. It's free.
New Ideas Every Week.
macroops.substack.com
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