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Very interesting shortish read on why the market does what it does and how to pick great companies.

this is a must read ! Enjoy!

https://www.elearnmarkets.com/school/units/joys-of-compounding-by-gautam-baid/the-holy-grail-of-long-term-investing

Insiders own 22% of the stock, with the CEO owning 16%, plus numerous staff have share ownership plans.

This is important as it shows an incentive to make the company work and succeed, history shows founder led stocks outperform compared to salary based managers who only think in quarterly results only and their job security and yearly salary.

Simply put, founder-led stocks outperform the market for several reasons. This has been tested over the years and we have found the charts to prove it.

The more the founder is involved in the business, the better. Elon Musk's nearly 18% ownership is very ideal. Sometimes founders own only 1% or less and they may still outperform, but it definitely isn't as convincing as 18%.

High founder ownership combined with high insider ownership of other key members (CFO's, board members etc.) should yield even better results as you can be assured that it is in the key members' best interests to succeed.

here are some quotes--

"Don't just blindly buy a company because it is founder led! The company needs to be of high-quality and have a reasonable valuation. This will almost guarantee exceptional returns over the long run."

" invest alongside people who have a sizable equity ownership in the business. The first thing I do when I look at a business is pull up the proxy. If there are no significant shareholders among the executives and directors, it’s an easy pass. I go on to the next name."

"Entrepreneurial instinct equates with sizable equity ownership. If management and the board have no meaningful stake in the company – at least 10 to 20% of the stock – look elsewhere."

"You want to fish in good waters. Stocks with higher levels of insider ownership tend to outperform their peers, as backed up by various studies. In short, there’s good fishing in these pools".

"The more the founder is involved in the business, the better. Elon Musk's nearly 18% ownership is very ideal. Sometimes founders own only 1% or less and they may still outperform, but it definitely isn't as convincing as 18%."

Edit, this video is from 2022, discussing 2021 results, but still important to investors today.

Morning, first post after being off Lse for about 5 yrs. Came back on simply because of this gem of a company and feel many more investors should know about it. I have been watching and learning about it over last 6 months, finding out everything I can. Plus, impressed with the quality and knowledge of all posters here!!

It simply is incredible company, huge growth potential( which it is executing very well) debt free, cash rich, high inside ownership, high returns on capital, cash flow rich.

It is now as we know 3 companies within one brand ( FX, alternative banking and fund finance) I am most excited about alternative banking. As it is the one with the most growth and margins. With a potential 1.6 million accounts available and alpha is serving only 4000 at moment, means huge growth potential and scalable. It is also where the staff head count will be lower as its mostly tech and compliance front staff needed( less back office) hence lower wage cost. Alpha has its on high tech proprietary systems in use ( which i believe will be using some form of A.I.)( which also reduces the need for back office staff). Also with UK interest rates to remain elevated until 2025 and then settle around 3-4% for the long term, this is good news for the amount of interest alpha will earn.

We have a fantastic CEO ( who owns a lot of shares, as well as does the staff) who are thus incentivised to make the company grow, expand and remain very profitable, who thinks for the long-term, he states if you read the last earnings report, that the company thinks and plans for years ahead not simply for each 1/4. then IMO this is not only heading for ftse250( where tracker funds can buy in) but potentially ftse100.

Of course being on AIM allows basically any fund manager to own it, as times have changed over the years, but we all want tracker funds to, and could alpha be dual listed on the nasdaq? who knows, as that is where the huge volume of trades come in, and really raise the p/e ratio from the buyers.( we currently have a relatively low p/e only 26) compare that to other nasdaq stocks !

There are few you tube videos about alpha, but can all watch this form 2021 especially around 5 min mark where the ceo explains the alternative banking, which is in stealth mode. thanks.

in summary, we are an undiscovered gem of a stock, that few retail investors know about.

https://www.youtube.com/watch?v=XEBy5QdHOsA