Vadim Perelman's Basic-Fit thesis $BFIT
Vadim Perelman goes through his thesis on Basic-Fit (BFIT) and why he thinks it could be a ~10x in ~10 years. Key topics include a detailed walk through the unit economics and why competitors won’t be able to open new gyms once the company “fortresses” their markets.My notes on BFIT: https://twitter.com/AndrewRangeley/st...Vadim's BFIT write up: https://punchcardstocks.substack.com/...Chapters0:00 Intro1:00 BFIT intro6:55 The key BFIT question: is 30%+ ROIC sustainable for gyms15:00 Why winning the "land grab" precludes competitors in local markets20:55 How BFIT's scale gives them a cost advantage25:00 Quick mentions of BFIT's marketing and rent advantages30:00 Comping BFIT's costs to UK low cost peers32:50 Why aren't we seeing a faster land share grab by competitors?40:15 Why isn't BFIT pursuing a franchise model?46:55 Could BFIT's ROIC go higher over time as penetration goes up?51:35 What bear cases does Vadim worry about?56:35 Store aging risk / underinvesting in MCX59:45 How BFIT uses their scale to bring down employee costs and create a moat1:05:15 Closing thoughts