Ann: AGM Presentation 2016, page-23

"Maybe i should've mentioned this before (and this may be obvious anyway), but i'm asking these questions not as a critic of FSA, but because i am actually interested in the business and am actually trying to talk myself out of buying it - which is something i do with most stocks i want to buy."

Can't argue with that reasoning - brilliant idea.


There's some excellent discussion on this thread regarding how FSA's employees are easily trained and obtained, how there's low capital requirements etc., and the first thing that pops into my head is: "low barriers to entry".

I thought that was the case (and still do to a degree), but the barriers can't be that low, as they've held a similar level of market share for a very long time. Either other management teams aren't as effective, or there are other reasons why FSA have defended their share for so long. TBH, I have an hypothesis on this but don't know for sure - but I bought this at about 10* earnings. My investment didn't really need any growth in cash flow from this segment for it to be successful (As an aside, NIM on their loan books is impressive, as is their knowledge of their customers, as shown in the accounts in arrears)

P.S. I should have changed my sentiment to Hold. I am not actually buying at current levels and don't intend to.