Simon

Investor in undervalued stocks

[Simon @mauerstrasse]

Another stock I recently added to my portfolio is $LMND. I opened an 11% position at around $32.

I had been watching $LMND for a while, but never really dug into the company. That changed about a month ago thanks to @ShadyJosh5 and his recommendations of @PaperBagInvest and @Ironic_Ape. Through them and the broader $LMND community, I was able to quickly build a solid understanding of the business.

What ultimately made the biggest difference in building real conviction was taking the time to actually watch the full Investor Day presentation instead of just scrolling though the slides.

Here are the four main reasons I decided to invest:

1. High Level of Automation
$LMND's business is built on a very high degree of automation, which gives it the potential to scale far more efficiently than traditional insurers. As the company grows, these structural advantages could translate into strong operating leverage and improved margins over time.

2. High Customer Satisfaction
Despite being a relatively young company, $LMND consistently earns strong customer reviews and loyalty. In an industry known for frustrating user experiences, their customer-friendly approach could become a long term competitive advantage.

3. Predictable Data-Driven Modeling
One of the most impressive aspects was how precisely $LMND can model and forecast its loss ratios and other key metrics. That level of predictability creates a strong foundation for long term planning and risk management, which is especially valuable in insurance.

4. Strong and Accelerating Growth
$LMND is not only growing quickly, but its growth is and probably will be accelerating as newer product lines and geographies scale. That’s a rare combination and one that could drive significant upside if execution remains strong.

I had actually planned to increase my position in the last few days, but after the stock jumped about 30% shortly after my initial buy, I haven’t added for now.

[Simon @mauerstrasse]

@memyselfandi006 Successful ragebait

[Simon @mauerstrasse]

My main concern with $RDDT is that the platform itself may not be growing structurally, as reflected in logged-in user growth. The growth currently visible may largely be driven by one-off effects from increased search traffic, for example due to AI Overviews. Once that effect is included in the base, structural growth could slow down significantly.

[Simon @mauerstrasse]

@ariaradnia To be fair though, the accelerating revenue growth comes from the Semrush acquisition and is not organic

[Simon @mauerstrasse]

@outlierrcapital Yeah, unfortunately I'm not too optimistic either. That friendly against the U.S. was really hard to watch. But if you don't believe in your own country, where's the fun in that?

Good luck to you, too!

[Simon @mauerstrasse]

@TaylorStCap It's pretty bold to make a comment like that after deleting your old tweet, which totally backed up my point. I don't remember the exact wording, but you said that if it's just the old Bear Thesis, this dip is absolutely stupid.

[Simon @mauerstrasse]

@ShadyJosh5 Morgan Stanley US Financials Conference

[Simon @mauerstrasse]

@ReneSellmann I don't think Eventim uses earnings call presentations at all, do they?

[Simon @mauerstrasse]

@CapexAndChill He's busy completing a few side quests

[Simon @mauerstrasse]

@DutchInvestors It’s become a bit of a trend on social media to hide your credit card inside one of these wands, use it to pay, and surprise the cashiers. I think it’ll sell pretty well, but it’s probably just a marketing gimmick at heart.

[Simon @mauerstrasse]

@ReyaneRemache @ariaradnia My point is simply that the EU is a huge market that is currently working on becoming independent. I don't quite understand your point.

[Simon @mauerstrasse]

@Mr_Derivatives https://t.co/zSA1z8O73P

[Prepared Remarks @P_Remarks]

SPCE up 50% because wsb said its most likely typo when ppl trying to buy SpaceX ipo

And you care about fundamentals

[Simon @mauerstrasse]

@ReneSellmann And what about the strategy of repeatedly cutting prices as profits grow? As I understand it, that’s exactly the strategy

[Simon @mauerstrasse]

@MaaizKhan 2x

[Simon @mauerstrasse]

@ReneSellmann Which one wouldn't you choose, and what would you choose instead?

[Simon @mauerstrasse]

As I understand it, under US GAAP, Wise is required to recognize all interest income as revenue, rather than just the first 1% as it did previously. The previous "underlying income" metric only included the first 1% yield on customer balances as revenue. Everything above that (i.e. interest income exceeding the first percentage point) was reported separately. The 13-16% underlying PBT margin referred to this narrower definition of revenue.
Since this change results in higher reported revenue but the cost basis remains the same, the reported margin increases as a result.