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($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Will the market go up? Or will the market go down? Times have never been more challenging with headline news whipsawing the market on a daily basis. What if you didn’t care if the market went up or down? Who could possibly be in that position? Well, if you were a company that handled trades, you’d naturally want more trades. If the market is volatile there are people buying and selling all of the time. The more volatile…the more trading. Well things are pretty volatile right now!
What kind of company does this? Interactive Brokers Group does! Today I bought IBKR at 227.07. I will sell it in 4 to 6 weeks at 262.27. Here’s why I like IBKR.
Look at this awesome chart…this stock just goes up and up? Any why? Because all of the money it makes booking all of these trades.
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. They serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Their four decades of focus on technology and automation has enabled them to equip their clients with a uniquely sophisticated platform to manage their investment portfolios. IBKR strives to provide their clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others.
This isn’t just braggadocio…if you look at this company’s sales, the growth is off the charts!
2024 - 9342
2023 - 7776
2022 - 4085
2021 - 2938
2020 - 2492
Earnings are even more cra cra:
2024 - 755
2023 - 600
2022 - 380
2021 - 308
2020 - 195
The comments from the most recent earnings conference call are MOST encouraging:
“In the fourth quarter, Interactive Brokers clearly demonstrated the power and leverage of a diversified, fully automated global platform.The international interest in securities markets continues. We added 775 thousand accounts in 2024, a record number of annual adds. 217 thousand came on board in the fourth quarter alone. Our client equity was up 33% to $568 billion, an increase of $142 billion from last year and the
first time we finished a year with over half a trillion dollars. Rising markets and the anticipation of lower rates led clients to actively trade securities, and to be comfortable taking on risk. In addition to increasing their exposure to various markets, they chose to take on more leverage using margin loans, and to take on more assertive positions, which increased our exposure fee revenue. This translated into strength in our financials. Our quarterly pretax income was a record, reaching over $1 billion for the first time, while our GAAP pretax margin rose to 75% for the quarter. For the full year, we earned over $5 billion in net revenues for the first time and achieved a 71% pretax margin – by far, the highest in the brokerage industry. Over the past several quarters, we have added multiple new products and enhancements worldwide. We have spent a great deal of time to understand the needs of our various client types.”
How do they do it? It’s simple…really simple. They use their proprietary technology and international trading experience to offer low cost, seamless global access to multiple types of securities for both institutional and individual investors. They deploy Award-winning platforms (desktop, mobile and web-based) that match a client’s trading style and expertise—from powerful trading features for professional traders to streamlined solutions for beginners.
The company is rock solid. They have a very conservative balance sheet, with significantly low duration risk, no external debt, and no off-balance sheet valuations. This isn’t exactly Revenge of the Nerds but the majority of senior management are software engineers, committed to automating as many brokerage processes as possible. So the punchline is that they know how the sausage is made. All of this results in more accounts and client equity on their highly automated platform mean higher activity.
Look…at the end of the day, I don’t have to know how they do it….but I do know that they are doing it and there is no reason to believe that this train is gonna stop any time soon. This stock is trading at a new high but it’s up over 150% over the last year. That means it’s clicking off stock gains at 13% per month. IBKR's strategy will allow the company to decure a greater portion of the retail trading market. This has provided them with an operating margin of 70% because of product automation. They have over 3 million accounts and they are seeing strong growth in customer accounts as well as customer equity balances. That’s a nice combo.
Now the PE of this company is higher than most of the companies I like to buy. It’s presently at 33 but when you look at the size of this company and it’s rampaging earnings growth and operating margins, it feels like a really safe play. Don’t diss the brokers…they just take the vig. Market goes up, market goes down…they don’t care. They just go to the bank, which is what I’m going to do when I book this profitable trade!
$$$MR. MARKET$$$
Will the market go up? Or will the market go down? Times have never been more challenging with headline news whipsawing the market on a daily basis. What if you didn’t care if the market went up or down? Who could possibly be in that position? Well, if you were a company that handled trades, you’d naturally want more trades. If the market is volatile there are people buying and selling all of the time. The more volatile…the more trading. Well things are pretty volatile right now!
What kind of company does this? Interactive Brokers Group does! Today I bought IBKR at 227.07. I will sell it in 4 to 6 weeks at 262.27. Here’s why I like IBKR.
Look at this awesome chart…this stock just goes up and up? Any why? Because all of the money it makes booking all of these trades.
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. They serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Their four decades of focus on technology and automation has enabled them to equip their clients with a uniquely sophisticated platform to manage their investment portfolios. IBKR strives to provide their clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others.
This isn’t just braggadocio…if you look at this company’s sales, the growth is off the charts!
2024 - 9342
2023 - 7776
2022 - 4085
2021 - 2938
2020 - 2492
Earnings are even more cra cra:
2024 - 755
2023 - 600
2022 - 380
2021 - 308
2020 - 195
The comments from the most recent earnings conference call are MOST encouraging:
“In the fourth quarter, Interactive Brokers clearly demonstrated the power and leverage of a diversified, fully automated global platform.The international interest in securities markets continues. We added 775 thousand accounts in 2024, a record number of annual adds. 217 thousand came on board in the fourth quarter alone. Our client equity was up 33% to $568 billion, an increase of $142 billion from last year and the
first time we finished a year with over half a trillion dollars. Rising markets and the anticipation of lower rates led clients to actively trade securities, and to be comfortable taking on risk. In addition to increasing their exposure to various markets, they chose to take on more leverage using margin loans, and to take on more assertive positions, which increased our exposure fee revenue. This translated into strength in our financials. Our quarterly pretax income was a record, reaching over $1 billion for the first time, while our GAAP pretax margin rose to 75% for the quarter. For the full year, we earned over $5 billion in net revenues for the first time and achieved a 71% pretax margin – by far, the highest in the brokerage industry. Over the past several quarters, we have added multiple new products and enhancements worldwide. We have spent a great deal of time to understand the needs of our various client types.”
How do they do it? It’s simple…really simple. They use their proprietary technology and international trading experience to offer low cost, seamless global access to multiple types of securities for both institutional and individual investors. They deploy Award-winning platforms (desktop, mobile and web-based) that match a client’s trading style and expertise—from powerful trading features for professional traders to streamlined solutions for beginners.
The company is rock solid. They have a very conservative balance sheet, with significantly low duration risk, no external debt, and no off-balance sheet valuations. This isn’t exactly Revenge of the Nerds but the majority of senior management are software engineers, committed to automating as many brokerage processes as possible. So the punchline is that they know how the sausage is made. All of this results in more accounts and client equity on their highly automated platform mean higher activity.
Look…at the end of the day, I don’t have to know how they do it….but I do know that they are doing it and there is no reason to believe that this train is gonna stop any time soon. This stock is trading at a new high but it’s up over 150% over the last year. That means it’s clicking off stock gains at 13% per month. IBKR's strategy will allow the company to decure a greater portion of the retail trading market. This has provided them with an operating margin of 70% because of product automation. They have over 3 million accounts and they are seeing strong growth in customer accounts as well as customer equity balances. That’s a nice combo.
Now the PE of this company is higher than most of the companies I like to buy. It’s presently at 33 but when you look at the size of this company and it’s rampaging earnings growth and operating margins, it feels like a really safe play. Don’t diss the brokers…they just take the vig. Market goes up, market goes down…they don’t care. They just go to the bank, which is what I’m going to do when I book this profitable trade!
$$$MR. MARKET$$$
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