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⚠️ Circle (CRCL): A Valuation Beyond Perfection ⚠️
Description
This episode provides a comprehensive financial overview of Circle (CRCL), a fintech company primarily known for issuing the USD Coin (USDC) stablecoin, detailing its business model of earning interest on stablecoin reserves and its efforts to diversify revenue. It examines Circle's customer base and the significant growth of USDC circulation, which directly impacts its income. The text then addresses various short-term and long-term risks, including interest rate fluctuations, regulatory changes, and competition. Additionally, the analysis explores Circle's cost structure, dominated by partner revenue-sharing, and assesses the management team's alignment with shareholder interests, before concluding with a detailed intrinsic valuation (DCF) that suggests the current market price significantly overvalues the company compared to its fundamental financial performance and growth prospects.
📚 Value Investing Books Recommendation
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Warren Buffett
The Snowball: Warren Buffett and the Business of Life
Kindle: https://amzn.to/3FVasqy
Hardcover: https://amzn.to/3HIfeZ2
Paperback: https://amzn.to/4kBjUOZ
Warren Buffett and the Interpretation of Financial Statements (by Marry Buffett)
Kindle: https://amzn.to/43Vr5dD
Hardcover: https://amzn.to/4n6yNus
Paperback: https://amzn.to/45XBBDL
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Charlie Munger
Poor Charlie’s Almanack
Kindle: https://amzn.to/3Zsw9VB
Hardcover: https://amzn.to/4jMExq7
Collector's Edition: https://amzn.to/3SRgsn7
Tao of Charlie Munger
Kindle: https://amzn.to/4nk0akT
Hardcover: https://amzn.to/44eq8OR
Influence, New and Expanded: The Psychology of Persuasion
Kindle: https://amzn.to/4619DqL
Hardcover: https://amzn.to/40a8TMi
Paperback: https://amzn.to/40gtwq7
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Howard Marks
The Most Important Thing (Uncommon Sense for the Thoughtful Investor)
Kindle: https://amzn.to/3Tqb4Yg
Hardcover: https://amzn.to/3SRyy8A
Paperback: https://amzn.to/45ohdM0
Mastering The Market Cycle: Getting the Odds on Your Side
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