New post is out: Find out who Charlie Munger wouldn't want marrying into his family and why he finds millennials peculiar. Also his views on why he and Warren Buffett have been so successful, China, Crypto, $COST vs $AMZN, Elon and more!
You and @dillon_jacobs are doing a good job getting me interested in $GPRO again— they were one of my worst investments 2014-2016 so it's hard to revisit. But I do like it when a small segment of an overlooked business starts growing fast. Those can be diamonds in the rough.
An excerpt from my investment notes on $GPRO coming in the next few days - subscribe (for free) if you want it direct to your inbox and thank you for the support.
GoPro has gone through a step change in terms of its business model. Historically the company was focussed on selling hardware products via retailers. This revenue was lower margin and one off in nature. Today the business has pivoted to a hardware plus subscription model. The business has also returned to growth, with TTM revenues growing in the last 4 quarters, along with ~18% FCF generation. GoPro is a stock that has lost trust with the market and today it trades at ~5x TTM free cash flow.