IBKR is the low-cost producer in brokerage, with 30%+ annual account growth, high automation (3,500 employees), and strong founder control; it earns high net income margins (69% in 2025) and is expected to grow earnings to over $5bn in 2026. The business's competitive moat and scalability should drive earnings to $7.5bn+ in 3-4 years, implying significant intrinsic value growth, potentially over $200bn vs. current $115bn market cap. Despite a current 23x 2026 earnings multiple, the long-term growth trajectory makes the stock attractive for long-term holding, though the author prefers to add only at a lower multiple for margin of safety. Slowing account growth, multiple compression, increased competition, or failure to maintain low-cost leadership and technological edge.
IBKR
HIGH
Apr 03, 09:56
Key Points
['Low-cost leader in brokerage', 'High automation, few employees', 'Founder-controlled, aligned ownership', '30%+ account growth compound', 'Earnings growth to $5bn+ in 2026']
April 03, 2026 at 09:56