TAL Education Group (TAL-N)

She really likes this and it is one of her top 10 holdings. An education company that basically provides K to 12 tutoring services. In Asia, education is very important. On top of that, you layer almost 2 decades of a one child policy in China, education is absolutely non-discretionary. A very fragmented industry and anyone could actually start a tutoring business in China overnight. This company has done a fantastic job of building such a strong moat around themselves. They pay their tutors very well. Their best tutors actually have equity positions in the company. Their reputation is so high, that the company does not spend on advertising. Their biggest challenge right now is finding enough talent in tutors to grow. Trading at the highest valuation it has ever traded at.

Top Pick Jun 1/16, Up 133%) He sold early. He owns a competitor now. Education in China gets more money now from the middle class. It could continue to run.

Basically afterschool tutoring for rich people in China, a $100 billion business, and one of the top 5. Great looking chart over the last couple of years, but is pulling back from all-time highs. Earnings look fantastic and are expected to increase from $1.49 this year to $3.12 in the next 3 years. Has a very low PEG ratio of 1.2.