Redbubble Stock DEEP DIVE - Fast Growing + Cheap

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MUST READS FOR VALUE INVESTORS - I don’t want to make a course because these books are better than any course. I prefer to listen to them through audible. Here are the links to the books and audiobooks.

Great For Beginners

Invested - Danielle Town and Phil Town (Great introduction to value investing)
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Rich Dad, Poor Dad - Robert Kiyosaki (Mindset and Motivation)
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The Barefoot Investor - Scott Pape (Day to Day Financial Planning)
https://amzn.to/2QioPLl

One Up On Wall Street - Peter Lynch (Full of Gold)
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Great For Getting Deeper into Investing.

The Little Book of Common Sense Investing - Jack C. Bogle (Index Strategy)
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The Little Book The STILL Beats the Market - Joel Greenblatt (Simple Strategy)
https://amzn.to/3f3xtI3

The Acquirer’s Multiple - Tobias E Carlisle (Simple Strategy)
https://amzn.to/3scoc43

The Dhandho Investor - Mohnish Pabrai (My Favorite Investor)
https://amzn.to/3lEyZS9

100 Baggers - Christopher Mayer (My Favorite Book)
https://amzn.to/393xNTb

The Education of a Value Investor - Guy Spier (Advanced Mindset for Serious Investors)
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Redbubble is about a billion dollar Australian company that is a little like Etsy, but with a few key differences.
Like Etsy, it has a two sided marketplace with buyers and sellers. These network effect type businesses are easy to start but very hard to grow.
You need to attract buyers and sellers at the same time somehow. But once you have buyers and sellers, well it snowballs really nicely. Redbubble has now achieved this critical point.

So the Total addressable market is huge.
Not only is ecommerce already over $700 billion globally, it is expected to be more than $1 Trillion in 2024.
Both Redbubble and Etsy report about 30-40% of this E-commerce market are looking for unique, meaningful items. This segment is also expected to grow faster than overall e-commerce as unique, meaningful products are becoming more mainstream.

Simply put, there are a lot of tailwinds for Redbubble and Etsy.

Long term debt levels are practically 0, so no issues here.

Now the founder and director of the company, Martin Hosking, holds about 16% of the company. That is great. He has retired as CEO and the new CEO Mike Ilczynski has only just started and the board made him buy about 2 million dollars of shares.

Opinion

Ok, the negatives to this investment idea are.
Big players might enter the space and compete more aggressively in the print on demand style business model. Etsy being the obvious one.
Copyright issues need to be addressed.
Working out how to continue growing repeat customers is a challenge in my opinion.
Shares have been diluted. So per share metrics are what we needed to look at.

And the positives are.
Big industry tailwinds helping the business grow.
a 3 piece flywheel network effect business is one of the best business models.
Asset light business with no long term debt.
Great compounding metrics.
Founder is still part of the management team
High net promoter score.
Massive total addressable market
Easy path to reinvestment and growth
Still a small business with a long way to go
Bonsai partners have heavily invested, giving me more conviction.
Network effect model is strengthening the competitive advantage everyday.
And most importantly, it is cheap.

Видео Redbubble Stock DEEP DIVE - Fast Growing + Cheap канала Andrew Brown