In their latest monthly update, Carlos Gil talks about a new position for the fund:

That, to me, sounds awfully like Viva Leisure. IPO in 2019, check. Revenue and EBITDA figures, check.

I've always been puzzled as to why the fundies like VVA so much. Perennial and Regal also have positions which they also appear to be building. Yes the growth has been impressive, but most of it has been through acquisitions, and these have failed to hit the bottom line to date, hence the use of bullshit EBITDA.

I don't quite share Munger's entire opinion on EBITDA. I think it can make sense for some businesses in some instances, but in this case I'm not sure it's any good at all as a metric. I haven't done the work here, but I suspect the stuff getting depreciated is the gym equipment, the improvements to the leased spaces to suit their specific needs, the financing costs.. It's hard to think these things will disappear in a near future.

Anyway, thought I would post in the case of someone being able to educate me if this indeed is a bargain at 4x EBITDA.