Continuous Compounding

Deep dive on my highest conviction idea just dropped! Quick pitch readers are already up +4-5%! You know where to find it. 👀

Will make a thread post tmrw, but feeling under the weather, for those who don't wanna wait, you know where to go

New free post out on Buffalo Co. (TSE-3352)! You guys know where to go!

@katakana_kurisu @CompaCompu That is why I chose "Continuous Compounding" cuz it doesn't apply to just money, compounding everything. Relationships, health, money, anything u want

@CompoundingUp @CompaCompu Continuous compounding of health benefits

@CompoundingUp @katakana_kurisu End of an era, thanks for the ride. 🥲

@itsDanielWu I was once in a restaurant and said if u give us a 5 star rating, we'll give u a free coke or something. Bribed ratings essentially.

@CompoundingUp If you are not exclusively using tabelog, you are doing it wrong. A 4.9* Google rating could be the worst food you eat in Tokyo (speaking from personal experience).

For all my Japanese followers, just want a sanity check on restaurant Google ratings. Back in 2019, when I went, a 4.1+ star rating would secure a good experience. A 4.3+ star rating, I could be almost certain the food would be good. I just read some Google reviews on Pisola, a casual medium-priced Italian restaurant chain in Japan, and they range from 3.5-3.8. A lot of 3-star reviews said the food is delicious but nitpick on something that I personally believe is a minor inconvenience. Have people become more strict in their ratings?

@itsDanielWu Yes, I understand that Tabelog in Japan is goated for sure

@HKTweetout I guess 5 is for something like a life changing experience

@CompoundingUp Check out tabelog, Japanese reviewers are very strict and picky and informative . If it’s great , then it’s 3 out of 5 . And there’s a reason why it’s a 3 , not a 4 or 5 . 😂

@sasurai_bito1 Damn thanks a lot for the indepth response, was not expecting that

I've never been to Pisola, but your question piqued my interest, so I did some research. Hope this helps your next trip to Japan! Sanity Check on Japanese Google Ratings Your observation is incredibly sharp. In Japan, the "rating culture" has evolved since 2019, and a 3.5–3.8 score for a popular chain like PISOLA actually indicates a very solid, high-quality experience. Here’s why the numbers might seem low compared to your expectations: 1. The "Deduction Method" Mentality In Japan, many users view ratings through a deduction lens. 5 Stars: Miraculous/Life-changing. 4 Stars: Excellent/Highly recommended. 3 Stars: Good/Satisfactory (Standard). Many people think, "The food was delicious, but I had to wait 15 minutes, so -1 star." That’s why you see "Delicious!" paired with only 3 stars. 2. The Price of Popularity (Common PISOLA complaints) PISOLA is victims of its own success. Most low ratings (1-2 stars) focus on operational issues rather than food quality: Wait Times: Even with a reservation, you might wait. Without one, it can be 2+ hours. Noise: Because it’s a "resort" theme, it attracts families and large groups, which can be loud for those seeking a quiet date. Service Lag: During peak hours, staff might struggle with drink bar refills or slow serving times. 3. Taste Preferences PISOLA’s seasoning is bold (rich in salt and oil) to cater to younger crowds and groups. Some older or health-conscious diners rate it lower for being "too heavy." 4. Authenticity of Reviews Since 2019, Google’s algorithms and stricter Japanese regulations have successfully removed many "fake 5-star reviews" (incentivized by coupons). The current 3.7 is a raw, honest reflection of a busy, high-demand restaurant. Summary for you:A 3.7 in Japan today is equivalent to a 4.2+ in many other countries. If you see a 3.8 at a PISOLA, it means the food is great, but expect a crowd! Pro-tip: Always make a reservation, and avoid peak lunch hours if you want a quieter "resort" vibe.

@katakana_kurisu Good to know, for me delicious is worthy of 4+, but my bar for delicious might be higher. If the meaning of delicious is used appropriately, then I think the 3 star ratings are too harsh imo.

@CompoundingUp 3 is generally very good here. People are strict 😂 It’s not uncommon to see comments saying simply “it was delicious” and then 3/5.

@VanjaPoker Are we assuming equal chip stacks or the stacks in the image?

What an insane lineup. Let’s say those 7 play that table 1,000,000 times. Who wins the most?

@cronosbro They closed their structure protection sheets business and lower cogs in 2024

@CompoundingUp why is revenue growth and earnings growth negative?

Want a way to bet on mini-LEDs? Keiwa Inc: (4251-TSE) Overview: Keiwa is a specialized manufacturer of optical films that direct and diffuse LED backlighting for displays in laptops, tablets, automotive monitors, and smartphones. Valuation: Share price: 1,326 yen/share (as of Jan 26, 2026) Mcap: 25.6 bn Cash/ST securities: 9.5 bn LT securities: 0.17 bn Debt: 2.3 bn Net Cash: 7.3 bn EV excl. LT securities: 18.3 bn P/B: 1.1x FY2025E EV/EBIT: 5.2x FY2025E P/E: 8.1x Div yield: 2.6% EBIT Margins: 14-26% last 4 years Why Invest: Keiwa dominates its niche with an 80-90% market share in the growing medium-sized mini-LED display market and approx. 40% market share in small/medium edge-lit LED display market. Keiwa has a large patent portfolio and is expanding into potentially high-growth sectors like EV battery films, automotive display applications, agricultural films, medical and sanitary applications, and infrastructure protection sheets. Offers a low-downside, high-upside setup trading at just 1.1x book value. Mgmt has increased dividends and increased share buybacks to raise P/B above 1.0x P/B which was effective. 👇 Quick stock pitch released on the other platform, see link in bio

@DaBao_ Glad to know, primarily due to my own lack of knowledge in this industry. You know of any good comps I should compare them to?

@CompoundingUp This is an A+ biz in my book. Basically a micro Ecolab, wow

Niiitaka (TSE-4465), a 🧵: 1/The Numbers (Cheap) 📈 • Market Cap: 14bn Yen • Debt: 1.7bn yen • Cash: 7.3bn Yen (Huge "dry powder" for more M&A) • EV*: 8.2 bn excl. investment securities (0.5bn yen) • EV**: 7.7 bn incl. investment securities • EV*/EBIT: ~4.1x • P/B: 0.9x • Dividend Yield: 3.3%

Looking for my third interesting Japanese stock this week, join me in my live stream: youtube.com/live/H_n4sigt5…

6/The Hurdles ⚠️ • Sensitive to raw material costs (petroleum/natural oils). • Limited ability to pass 100% of costs to customers. • CEO ownership is surprisingly low (worth watching). • No active buyback program currently.

5/Why you’d look at it: ✅Cheap valuation with a clean balance sheet. ✅ Improving margins (falling raw material costs + high-margin healthcare). ✅ Gradually capturing market share via operating leverage. ✅ Expansion into dental clinics and other hygiene niches.

4/New Growth Levers 🚀 • Healthcare: Acquired Biobank (lactic acid bacteria supplements). These carry higher margins than industrial cleaners. • China Hotpot Trend: They sell solid fuels for self-heating takeout meals and meals served in ryokans—odourless and high demand. • Tourism Boom: They are a direct beneficiary of the Japanese tourism recovery. • Overseas revenue expansion

3/The Competitive Edge: Vertical Integration 🛠️ Unlike many peers, Niitaka is vertically integrated. This allows them to create custom solutions like "Chemifine." The Value Prop: It’s a quick-rinse product that requires no scrubbing and bubbles less after rinsing, reducing labour costs

2/What is Niitaka? They specialize in cleaning chemicals for high-traffic food related industries: • Restaurants & Hotels 🏨 • Food Factories 🏭 • Schools & Supermarkets 🏫 New Healthcare Segment (New growth lever)