TIP806: Wise PLC w/ Kyle Grieve and Daniel Mahncke

You're listening to TIP. Over the last five years, WISE PLC has compounded reported profits at 90% per year. And yet, if you've owned this business since its IPO in 2021, your return has roughly been only 1% per year. So what exactly is going on? The answer, as it turns out, is actually pretty straightforward.

Wise went public when the market was at peak euphoria. This euphoria created a price for WISE that was simply not sustainable over market cycles as it approached 390 times earnings. A valuation like that leaves zero room for error, and even if you continue to generate high profit growth, the market is very unlikely to maintain a multiple like that for a very long period of time. But if you strip away the noise of the inflated IPO price, what you find is a business that has been quietly compounding its fundamentals and executing at a very high rate. Today, I'll be joined by my co host Daniel Manka to take a closer look at WISE.

We'll get into how the business actually works. While most investors have probably sent money overseas before, The specific mechanisms of just how that actually happens are probably going to surprise you. And where WISE has its advantage will surprise you even more, as it's very different from what most cross-border payment companies do, which is why WISE has some very unique advantages. We'll also look at WISE's revenue streams, honestly assess their true competitors,

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