RBL, SMP, both are incredible business models with strong unit economics.
But it’s also possible that superior technology comes out in the next 5 years that will derail their current structural growth trajectory. Which means a divorce may be needed.
The businesses truly worthy of marriage are those in industries with little or no technological innovation and an impenetrable moat that still stand the test of time.
there are very few of these businesses on the ASX, and if there were they would all be so expensive there’s not enough $ to be made. (CSL, WES, WOW, COL)
Also, IV is not static, too many people think it’s a magic number that stays the same. So no I would not buy any business that’s at a discount to IV.
