Thanks, what a lovely comment. I must admit that I've been sitting on this idea for six months, as it has taken me that long to get comfortable with my understanding of the business.
Thanks for this. Very interesting. I remember the name from when I followed (& invested in) the First State Japan fund (which recently closed). They did amazingly well for a while - as they had a basket of 'Quality Growth' like this. And then it all collapsed horribly. I suspect that they may have closed the fund at exactly the wrong time, but it never had a big AUM (Japan not really their core specialty) & communications were never strong, so am guessing they couldn't explain that things were looking up.
Thanks for your comment. This is important context - the market has indeed treated many Japanese quality growth names as a group, despite utterly different business models.
From old fund factsheets, I see that the fund you mention held GMO Payment Gateway, Nihon M&A, Rakus and Raksul, among other names that had similar boom-and-bust trajectories.
Nice write up. Have followed M3 and its competitors and subsets since 2015. Curious about your 20% rev growth in FY26! If it is Elan, then 55% of 45bn in 2 years, while declining to flat organic, hardly make up for 20%.
Thanks for your comment. I don't factor in any unconsummated M&A, but FY26 will benefit from over six months worth of Elan, which is revenue-heavy but margin-dilutive.
Great that you've followed the names for that long in real time. Do you rate M3 as high quality? What are its challenges vs the competitors?
Thanks for actually explaining the business clearly. Never really understood M3 until reading this.
Thanks, what a lovely comment. I must admit that I've been sitting on this idea for six months, as it has taken me that long to get comfortable with my understanding of the business.
IR was very helpful and speaks fluent English.
Good to know if I ever pursue the idea.
Thanks for this. Very interesting. I remember the name from when I followed (& invested in) the First State Japan fund (which recently closed). They did amazingly well for a while - as they had a basket of 'Quality Growth' like this. And then it all collapsed horribly. I suspect that they may have closed the fund at exactly the wrong time, but it never had a big AUM (Japan not really their core specialty) & communications were never strong, so am guessing they couldn't explain that things were looking up.
Thanks for your comment. This is important context - the market has indeed treated many Japanese quality growth names as a group, despite utterly different business models.
From old fund factsheets, I see that the fund you mention held GMO Payment Gateway, Nihon M&A, Rakus and Raksul, among other names that had similar boom-and-bust trajectories.
Nice write up. Have followed M3 and its competitors and subsets since 2015. Curious about your 20% rev growth in FY26! If it is Elan, then 55% of 45bn in 2 years, while declining to flat organic, hardly make up for 20%.
Thanks for your comment. I don't factor in any unconsummated M&A, but FY26 will benefit from over six months worth of Elan, which is revenue-heavy but margin-dilutive.
Great that you've followed the names for that long in real time. Do you rate M3 as high quality? What are its challenges vs the competitors?