Buying This Fast Growing Company With 100% Upside
Revenues have grown by 40% and net income by 90% annually since 2021. Trading at just 13x forward EBITA.
Simple, boring, and consistent—this is how Peter Lynch describes the best businesses.
This is also what steered our investment decisions earlier this year, when the market was at its peak before the Iran War. AI euphoria was pervasive, the market was at all-time highs, and investors were expecting rate cuts. Naturally, sexier, high-growth tech businesses were restrictively expensive across the board.
At that point, instead of forcing those expensive stocks, we shifted our focus to simple, boring, and consistent businesses that were ignored due to AI euphoria.
We picked Tasmea with that mindset, and it’s been one of our best-performing positions this year, alongside Nebius and AMD, which we bought in early 2025.
In my Tasmea write-up, I said it could double within the next 12 months. We are almost there, and it’s been only 6 months since my write-up:
It performed incredibly despite not being a tech stock in an environment where investors only wanted tech companies with AI exposure because its fundamentals and prospects were undeniably strong. The execution we saw so far validated this.
This is a clear example of the market creating opportunities somewhere else when everybody focuses on specific sectors and names.
I think we are going through a similar period again.
It doesn’t take a genius to see this:
The market is at a near all-time high despite war and a jump in inflation.
Valuations are high as the S&P 500 forward P/E is at 21 and shiller P/E is at 35.
Stocks that can be even remotely connected to the AI boom go up 30% overnight.
It’s again time to shift our focus to simple, boring, and consistent, as the concentration of the current rally on the AI theme has created opportunities in other, less sexy corners of the market, opportunities like Tasmea.
Today, I am introducing you to one such opportunity:
40% annual revenue growth since 2021.
90% annual income growth in the same period.
Insiders still own around 15% of the company
What’s even better is that it’s trading at just 13x this year's EBITA while guiding for +15% annual growth in the long-term.
Stock can easily double over the next 12-18 months if the management delivers on medium-term targets, and it could be even faster, like Tasmea, if they keep up exceptional execution.
It’s a true gem in an environment where almost everything is priced for perfection.
So, let’s cut the introduction here and dive deep into this hidden gem.
🏭 Understanding The Business
One type of business, when done right, has consistently outperformed the market.