SMB Food Guy

Former Private Equity and Hedge Fund Guy: Now Owner and Acquirer of (mostly) Food Businesses

[SMB Food Guy @SMBFoodGuy]

@Jason Check out the Nagano area. Convenient bullet train from Tokyo and you’ve got mountains and towns like Nozawa onsen, shiga kogen, Myoko. Avoid Hakuba that has also been over run. Even better powder than up north.

[SMB Food Guy @SMBFoodGuy]

Is this not a frothy part of the market, at least for traditional mega fund LP stakes?
I agree with the massive need for liquidity and the massive backlog of private companies looking for exits - why is it then that secondary funds are buying these stakes at record low discounts on arguably overstated marks? Looks like secondary fund investors are bailing old fund LPs out and could end up holding the bag

[SMB Food Guy @SMBFoodGuy]

@ankurnagpal 👍

[SMB Food Guy @SMBFoodGuy]

@ankurnagpal QSBS

[SMB Food Guy @SMBFoodGuy]

@pepemoonboy I like EAGL and MOAT. Both a focus on qualities companies but less tech and less concentration

[SMB Food Guy @SMBFoodGuy]

@TipOfTheBanana I am a big fan of the bone broth products at Brodo and Fond

[SMB Food Guy @SMBFoodGuy]

@endowment_eddie And what about taxes owed on that 12% vs tax free via the SPX ETF? These hedge fund models have also been calibrated to serve tax exempt institutions but don’t compete effectively for taxable high net worth allocations

[SMB Food Guy @SMBFoodGuy]

@tonitrades_ @skhetpal I’d be curious what that 12% was net of tax, and then compare that to the SPX return which is probably about 10% with no taxes owed at all

[SMB Food Guy @SMBFoodGuy]

@ContrarianCurse Absolutely. And even if you find a stable business where you can underwrite durable flat earnings for 10+ years, trading at a 10% earnings yield, you need to trust that management will think about the business the same way, distribute cash, and not destroy value

[SMB Food Guy @SMBFoodGuy]

@buccocapital The gorilla game

[SMB Food Guy @SMBFoodGuy]

@buccocapital Some SaaS tools will see AI disruption as workflows are streamlined, licenses are eliminated
Others will see ARPU 3x’d on embedded AI functionality into mission critical licenses that everyone needs
Office is a boundary condition latter example
(And G Suite is a winner too)

[SMB Food Guy @SMBFoodGuy]

@LeylaKuni I wonder how often these private credit lenders are recapping their own earlier private equity funds, robbing Peter to pay illiquid Paul