Thanks for the great work. Can I ask your opinion on Tiny in the small cap space (https://www.tiny.com/)? Recently I've seen a number of articles highlighting the business as a Warren Buffet/Berkshire approach for 2023 with a focus on tech and software.
Thank you in advance!
TINY is a $600M company, that started acquiring businesses using a similar decentralized approach as Berkshire Hathaway. The company was founded in 2016, has over 30 investments, and aims to return value to shareholders via share buybacks and dividends. In FY2022, it generated $154M in revenue and $3.4M in net profits. It has a somewhat high debt load, generates positive free cash flow, but issues debt to help fund operations. It trades at an OK valuation, of 29X forward earnings and 2.8X forward sales. Overall, its stock price momentum has been quite negative since inception, but it seems to have found some support since late 2022. We would consider the name to be of higher risk at this time, given its shrinking margins, smaller size, and high debt loads. If the company can improve its margins and continue to grow its top line, we might become more interested, but for now, we have a difficult time endorsing the name.