KPO

I did. Doubled my position late this summer around $7.50. I hold it in a taxable account since it’s non-income producing, so I did a tax loss sale of some of the initial position, but I’ve been watching it closely of late. Given the balance sheet and benefits of scale that have become increasingly evident in the financials the last year or so, I see this as a likely takeout candidate. I also liked that Walmart and a few others exited the telehealth business last year, so competitive intensity should be lower. Even if they aren’t taken out there’s a lot of optionality to the business in similar form to Netflix when they were mailing DVDs vs streaming.

While the copper businesses have had some safety issues in the past, I don’t see any financial governance issues that concern me. My one critique would be around repurchases. Given the SOTP value is more than 50% over the current quote and they have very limited leverage, I’d like to see repurchases here. They’ve really only done small repurchases in the past, but they also haven’t issued shares either.

I’m in the cash heavy camp at the moment, however I think there are many low to medium conviction value opportunities currently available, so I’ll throw a few out there: - BGS - acquisition candidate with some recent insider buys - GMBXF - SOTP/inflation hedge/NA trade exposure w/ railroad concession that’s much larger and more valuable than CP’s KCS-purchased Mexican concession - OLN - share repurchase cannibal the past 5 years - STNE - cheap on virtually any valuation metric, hedge on dollar strength reversing - HOG - share repurchase cannibal the past 10 years, revenue in secular decline, but strong embedded base, valuable niche brand that could make it an acquisition target

HOG

I’ve bought and sold GMBXF a few times over the years as the railroad is typically ascribed negative value after backing out the ~90% SCCO stake. Interesting to see you bring this up as I’ve been looking at it again since the election. The US needs Mexico (and Canada) if we want to continue to decouple from the Asian region.

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.