This post just goes to show people think that blind optimism is...

This post just goes to show people think that blind optimism is a foundation for a "great analysis." The bar just became so much lower for what constitutes "great analysis" that the floor has literally cracked.

Onto the content itself, how on earth can you conceivably even think of comparing FMG and Zip? Fortescue is run by a visionary with a great management team. It supplies necessary resources that powers industrialization in the developing world. Its Pilbara mines specifically hold a cost-leadership position in iron ore. It has actual assets, infrastructure, cash flow and it pays dividends. Its success is determined by the margin between its cost of production and iron ore selling price. Its customers aren't sub-prime borrowers: they are governments or steel mills operated by governments/major conglomerates.

What does Zip have? What does it do? What competitive advantages does it have? It borrows money at expensive rates, lends it out through an extremely expensive platform, to poor Americans - many who don't even earn $10/h, can't access traditional credit because they have disastrous credit scores, and don't have stable jobs.

BNPL is not only low margin, there's no surety borrowers will even pay loans back and you're already seeing it in Zip's delinquency rates while its margin gets whacked further by rising rates and lower spending from inflation. On top of that, Square, Klarna, Apple, Visa etc. are literally looking to bring this company and smaller providers to their knees because there are no barriers to entry in the BNPL market.

But here you are comparing Zip to Fortescue, because it's so easy to set up a new iron ore mine tomorrow for some mining speccy?

A GREAT BUSINESS!

Please by all means, go buy it. No skin off my back as its not my money.