KPO

STNE

Whatever the case I need to give you a huge shoutout for your eBay call. I think I’m up like 60% plus dividends thanks to your raising the idea. It was on my radar previously, but you raised it at the perfect time. RTO is another one that actually wasn’t at all on my radar. Appreciate your posts (and not just the JOE ones)!

Just read the WSJ article with the (no) comment from Mr. Buffett. Congrats on the book. Kind of cool that he seemed aware of it.

As we sit here sub-$9’s, probably exacerbated by tax loss selling, I could see STNE doing okay.

Nestle

Waded into a little JOE for the first time in several years and after selling half my position in July. Thanks to @Gregmal for the consistently outstanding coverage. I need to get down there to see it all myself.

Agreed

Mostly the > 40% discount to the underlying Porsche and VW holdings (plus a solid venture portfolio you get for free), coupled with some common sense messaging recently relative to the EV transition on the Porsche side of the business (i.e. openness to more ICE investment). This is one of those situations where sentiment is so negative for the industry (tariffs, EV/fuel economy mandates, structurally lower cost competitors), and this company in particular (German labor unions, potentially foolish and expensive EV partnerships, etc.), that something has to give. I know we’ve had this conversation before, but I can’t get past looking at the valuation of RACE and thinking the Porsche and Piech families won’t eventually find a way to monetize some of the premium owned brands (Bentley, Lamborghini, Audi, Bugatti, Ducati, etc). In the meantime you get a ~5.5% dividend (after the 26% German tax withholding) while you wait for this to play out. Once the holding company pays down some of the debt taken on to cover the doubling of the P911 stake a few years ago I’d expect to see POAHY buybacks, but this is at least two years out. Not a huge position for me btw, but I’ll add if it drifts lower.

POAHY

Agreed. Given their mostly transaction-based business model, STNE is naturally hedged on inflation in similar form to MA & V, but at one quarter of their multiple.

Added to STNE sub-$10. Solid quarter, good buyback progress, net cash position, favorable gross margin profile, and trading at a single digit P/E. Outside of the obvious risk of currency volatility, what’s not to like here?

I wouldn’t bother to sell unless insiders start selling in volume, as they seem to still have a lot of levers. That said, what are the odds that they use this as an opportunity to unwind some or all of the total return swaps on the ~2M shares?

It naturally rolls back to pre-2017 levels after 2025, so the hope is this will get extended along with the lower tax rates, accelerated depreciation and other features of the original act.

Trump tax policy is somewhat of an offsetting positive for farmers, particularly the higher estate tax exemption under the 2017 tax cut & jobs act. It made transferring family farms possible without raising significant money for the tax bill or outright requiring liquidation to meet the tax bill. Double (and in many cases triple) taxation at its finest.

Enbridge comes to mind, but that would have made more sense 3-4 years ago. Still own shares and love the business though, so there are certainly worse things they could buy.