We Study Billionaires (TIP)

We Study Billionaires (TIP)

Kelly Partners Group (KPG) is an Australian serial acquirer consolidating fragmented accounting and tax firms through a unique "partner-owner-driver" model that incentivizes original owners to remain. After a 50% stock decline from early 2025 highs, the company—valued at roughly A$300 million with minimal share dilution and founder ownership near 50%—presents an early-stage opportunity analogous to Constellation Software but within essential, relationship-driven professional services.

We Study Billionaires (TIP)

Drew Cohen of Speedwell Research argues that Constellation Software's 50% drawdown due to AI fears is overblown, explaining that mission-critical vertical market software customers prioritize reliability and switching costs over marginal cost savings, making disruption by AI-generated alternatives unlikely despite the technology lowering barriers to entry.

We Study Billionaires (TIP)

Following an 80% post-IPO decline, Figma now trades at a $12 billion valuation—40% below Adobe’s blocked $20 billion acquisition offer—despite maintaining 45% annual revenue growth and establishing itself as the dominant collaborative design platform that defeated Adobe XD.

We Study Billionaires (TIP)

Duolingo trades at a surprisingly reasonable valuation of 20x free cash flow despite 30% growth, but investors are divided on whether its gamified learning model can overcome high user churn and limited fluency outcomes to capture a trillion-dollar education market.

We Study Billionaires (TIP)

Lyft trades at a $7 billion market cap but could be worth 3x or more to tech giants like Amazon or Alphabet, who would pay a premium for its 30% North American market share and Flex Drive fleet management capabilities to accelerate autonomous vehicle deployment.

We Study Billionaires (TIP)

Constellation Software (CSU) has experienced its largest drawdown ever, falling 50% amid AI disruption fears, creating a potential buying opportunity in a high-quality compounder often called the "Berkshire Hathaway of software." The company operates a decentralized model acquiring over 1,000 niche vertical market software businesses with a permanent capital mindset under founder Mark Leonard, who recently stepped down due to health concerns.

We Study Billionaires (TIP)

Despite its removal from the 'Magnificent Seven' and a recent 30% stock decline, Netflix has solidified its dominance through ad-tier monetization, password crackdowns, and superior user retention, positioning it for sustained double-digit earnings growth.

We Study Billionaires (TIP)

Hermes commands a persistent 50x PE multiple and has delivered 21% annualized returns over the past decade by operating as "true luxury"—selling scarcity and status rather than products at scale, making it uniquely resilient to economic cycles despite appearing perpetually expensive.

We Study Billionaires (TIP)

Doximity operates a HIPAA-compliant professional network used by 80% of US physicians, combining high-margin pharmaceutical advertising (via a unique subscription model rather than auctions) with AI productivity tools that reduce doctor admin time by up to 13 hours weekly, creating a dominant 'walled garden' in healthcare tech with powerful network effects.

We Study Billionaires (TIP)

Despite Meta trading at a significant discount to tech peers (22x forward PE) and improving its core ad business with AI, the market is pricing in skepticism about $100B annual AI investments. The Reality Labs division has burned $70B with limited success in VR, and Meta faces steep competition from Google's Android XR ecosystem in the AR glasses race, raising questions about whether this massive capex will generate returns or simply dilute the core business.

We Study Billionaires (TIP)

Churchill Downs (CHDN) operates the iconic Kentucky Derby while generating consistent profits through a unique ecosystem of Historical Racing Machines and B2B gambling technology, delivering 17% annual returns over the past decade—a rare combination of trophy asset prestige and viable business economics.

We Study Billionaires (TIP)

Mercado Libre is the only public company to deliver 30%+ revenue growth for 27 consecutive quarters, yet trades at its lowest valuation ever despite expanding operating profits 30-fold over five years while the stock rose only 30%, creating a potential opportunity as Latin American e-commerce penetration sits at just 14%.