Posted on January 7, 2021
Today’s underlying is an ecommerce outfit based in the Cayman Islands, banking home of the independently wealthy, both criminal and hard-working.
They call themselves StoneCo (NASDAQ:STNE), and they claim to facilitate financial transactions for small business in Brazil.
Of all things…
Fundamentally speaking, StoneCo has some dastardly numbers:
Granted, she’s an online business – and that explains, at least in part, the inflated metrics – but with 6000 employees, we’re beyond start-up stage growth numbers. So something’s amiss.
A scan of the company’s press releases reveals little in the way of thrill-inducing buy signals.
Yes, Berkshire Hathaway owns a chunk of the company, and yes, that’s exciting.
But at some point, buying must needs exhaust itself.
And we believe that time is now – for now.
Many happy returns,