Wise is a favourite company & product of mine but I'm not invested either, a slight concern would be within the short term the company is just going to acquired before it has time to really compound, like what often happens with the UKs exciting growth companies. Prime example Darktrace last year
Interesting company for sure. I will have to open a small position while studying it further. If the bear case is getting acquired with significant premium I think I can live with it.
Why can fintech companies reduce costs compared to traditional banks? According to Wise’s investor materials, they say they’ve reduced intermediaries. However, I don’t think Wise has subsidiaries in all 160 countries they serve. That would imply Wise does need intermediary banks in each country. So where does their cost advantage come from?
Why did you pick Wise instead of Remitly? Wise’s growth rate has slowed compared to Remitly’s recently. One key difference is that Wise offers bank-like international accounts, which generate interest income. However, in terms of the money transfer business itself, Remitly seems to be growing faster, even though they project a slowdown in 2025. Is there a specific reason you prefer Wise over Remitly?
I would be curious to hear more around your thoughts on why you decided to not invest for now? I am long Wise and Remitly. Hard to see what's going to stop Wise's growth
Wise is a favourite company & product of mine but I'm not invested either, a slight concern would be within the short term the company is just going to acquired before it has time to really compound, like what often happens with the UKs exciting growth companies. Prime example Darktrace last year
This could happen. But I get a different vibe from the management team.
Interesting company for sure. I will have to open a small position while studying it further. If the bear case is getting acquired with significant premium I think I can live with it.
Haha that’s not a bear case yet rather just a disappointment when you aren’t able to ride the compounding capability to its truest potential
Costco algorithm in play!
Indeed sir
Hi Antonio,
Thank you for the detailed article!
I have a few questions:
Why can fintech companies reduce costs compared to traditional banks? According to Wise’s investor materials, they say they’ve reduced intermediaries. However, I don’t think Wise has subsidiaries in all 160 countries they serve. That would imply Wise does need intermediary banks in each country. So where does their cost advantage come from?
Why did you pick Wise instead of Remitly? Wise’s growth rate has slowed compared to Remitly’s recently. One key difference is that Wise offers bank-like international accounts, which generate interest income. However, in terms of the money transfer business itself, Remitly seems to be growing faster, even though they project a slowdown in 2025. Is there a specific reason you prefer Wise over Remitly?
I would be curious to hear more around your thoughts on why you decided to not invest for now? I am long Wise and Remitly. Hard to see what's going to stop Wise's growth
I hold 5 extraordinary companies and am in no rush to buy any others. I usually monitor a company quarterly for years before making a move.