TBBB的大规模门店扩张（从3500家增至15000家）将推动未来利润，尽管当前估值较高，但仍是强劲的长期买入标的。

We will be talking about "TBBB", a leading and growing discount retailer in Mexico. The fundamental question is: they have 3,500 stores, so will the economic viability remain the same when expanding from 3,500 stores to 15,000 stores in Mexico?

The current rating is too high. The stock price has risen dramatically, and I hate to look at the stock price and wonder, "Did we miss the opportunity?" But did we really miss out? As you know, I hear from many who were previously optimistic, “It’s difficult for me now to value this stock at attractive internal rates of return.”

But again, from 3,500 to 15,000 stores with a two-year capital recovery period, that's how you get the result, and it doesn't matter if you paid 20 times, 40 times, or 100 times at the beginning. Because when you go from 35 to 1500 and then to 15000, the profits increase very quickly.

So, let's delve deeper into the company we want to talk about today. The company we are talking about is listed on the New York Stock Exchange under the symbol TBBB. It is Tiendas 3B, a Mexican chain of stores.

I consider Tiendas 3B to be the most convenient way to buy groceries in Mexico. They simply follow the Aldi model. Instead of selling 30,000 products, they only sell 1,000 products. They can buy them in large quantities, get a better price, and sell them much faster than other grocery stores . They can pass these savings on to the consumer.

Anthony invested in BIM, the Turkish version of this company. He said, "This is a great model. Where can I apply it myself ?" Then he looked around and said, " Mexico has all the ingredients I need to succeed." The man did not speak Spanish, so he moved to Mexico in 2004 and opened his first store in 2005.

Today, he has not yet expanded to northern or southern Mexico, but his activity is limited to the center , and he has more than 3,700 stores. To clarify, this number exceeds the total number of its stores in the United States, which is the second largest growth market in the United States .

The reason we are so impressed with this work is that we focus on four key things. We are long-term focused investors , in the style of Charlie Munger, as we might call it. So, we like something, a project that will grow over the next 20 or 30 years and remain strong during that time .

Everyone needs food. Everyone wants food that is easy to eat. Third, they want food at reasonable prices. No one ever said, "I love the chicken pieces you sold me, but I wish they were twice the current price."

Secondly, if you are thinking long-term, you don't like having too much debt because it will sink you at the worst possible time. They paid off their long-term debts when they put their shares up for public subscription. They have some cash reserves.

Third, excellent management. I mean, we judge management based on its actions, not its words. The man's record speaks for itself. He is a shining star.

and fourth, in terms of valuation, as you know, we prefer a margin of safety, but if we look at it from a fixed perspective, it is not a winning deal. Not an exceptional deal. But it is actually a machine for multiplying growth.

We believe that the 38% we achieved last year will continue to grow. Let's divide this ratio by two. We believe it will continue to grow over the next two or three decades , and that means the potential for a profit of up to 100 times.

It is simply a great business venture that prioritizes its customers and passes on their savings to them. And I think they are building this good reputation.

Because, as you said, there is a long history of discount retailers working with vendors. I mean, Aldi in Europe is the most famous example, is n't it? But there is also Trader Joe's in the United States . Everyone wishes Trader Joe's shares were listed on the stock exchange, wouldn't they ? But these things come at very low prices , and they are mostly private label brands, as if they capture a large share of the market, and the company that becomes large dominates and achieves great success. This is what happens with TBB.

The stock price has risen significantly over the past year and is currently trading at high prices. People are beginning to realize, perhaps too late , that this is a great business venture. Look, if you look at it from our perspective, you're looking at next year, and I don't know what's going to happen in it. There are significant fluctuations, but when you add the accumulation factor to this business, the cash flows will be reflected over time. We cannot deny this, and we do not expect this growth to stop.

Allow me a side note. As you know, we already went to Mexico, without the administration being present. We met with management later, and toured the stores. In short, we visited stores in different cities. We found that this product is the least expensive . There are three competitors, but they are all too far behind, and I could add more, but they are all too far behind. They are imitating this model.

Going back to Trader Joe's, they bought a company called Yama (they don't publicize it). We visited their stores a year ago, and they had two stores. Today, they have four. They are imitating the Trader Joe's model. They imitated him. They have far more products in their basic model, which is the national model. As you know, but this is just the beginning. I consider it a valuable addition. I wouldn't bet on this company just because Yama is involved. Their basic work is absolutely fantastic, and there's no need for that. But it's an addition.

So, what we see is a great company ready to be talked about more. This company is one of our flagship projects, I am interested in its history. As I mentioned, these companies have a proven track record of success worldwide, and the CEO here , the founder, does not speak Spanish. He simply said, "I saw how this worked in Türkiye, I think. I want to implement it somewhere else, don't you?"

There's a "chicken or egg" dilemma when it comes to these companies, is n't there? Because all these companies will tell you, "We have 1,000, 2,000, 3,000 stores . I think this company had 3,500 stores at the end of the second quarter. We use our store base to negotiate our business volume, to negotiate the best products. Private labels, you know, say, "We have distribution centers, so we can be more efficient with regard to distribution centers." "But how do we begin? Let's say we're in Canada and for some reason we don't have discount stores, how do we start? Because we don't have a distribution center to begin with, and we don't have a store base, so we start with one store. So, how do we solve the chicken-and-egg dilemma ?

I ask this out of curiosity, and because their stores have a two-year payback period, the first thing that comes to mind is the competition. So, if we explain how they overcame this problem, it might help people understand why nobody else has been able to, or why it's so difficult , so to speak.

I think first and foremost, this guy, you know, was successful at everything he did. That's evident from his track record. He started with one store, but he had the model, and he saw it working. And I think that was his competitive advantage.

Today, they have a little over 900 products. I'd say around 1,000 . But back then, they only had 300 products. They did n't have freezers. He limited himself to what you might call the basics.

First, they didn't have freezers. Now they do." Freezers. Well, it was a grocery store, a small grocery store. By the way , it was only 6,000 square feet , instead of the 12,000 square feet that other stores are. That's about twice the size of a 7-Eleven . So it's really convenient for people. You know, you get off the bus , you buy what you need.

Then, over time, he developed the private label model. Yes, I probably don't know his prices at the beginning. But he definitely knew he was going to do it. His first private label was early on because he knew it would work. And it did. It's been a few years. I remember it was milk. And now, you see, over 60% of their products are private labels. That's build-up over time.

Not only that, but it takes about three years to develop a private label because it's local, meaning it's from local milk producers . And the amazing thing is that the people who used to come to the store 10 years ago now come to a store with a much wider selection . That's part of the build-up, especially in the wholesale business .

And what's even more impressive is that they still don't sell fruits and vegetables. It's not a full-service grocery store . Twenty years ago , Costco was much more comprehensive than it is today. It's still incomplete, and that's one of the reasons for its incremental growth.

They also save money. It's word of mouth. They do n't spend money on marketing, so they can pass the savings on to consumers. Let me give you a specific example. They created a line of medications, you know, basic things you need , like cough syrup and ibuprofen. They have a type of ibuprofen that sells for 22 pesos. They have a cheaper type, but this one is good for comparison. 400 mg, 10 tablets, it was 22 pesos. I went to Walmart, the largest grocery chain in Mexico, which owns Orirra, their competitor. Walmart had the exact same ibuprofen, the same quantity, for 58 pesos. This was a private-label product. Advil was 80 pesos.

So, I think Sam Walton would have flipped on the He'd be buried if he heard that. Because he's simply passing the savings on to the consumer , and that will build a good reputation. We've seen it with Costco. We've seen it with all the other companies, and it