Stock Thoughts – Big Moats Edition

Quick thoughts on 4 stocks I’ve got stuck in my head.

  • Match Group – Losing users (paid and not paid) isn’t great, but this seems like a profitable business with a great moat trading at 8x FCF and 12x Forward PE. Does it need to be more complicated than this?
  • Starbucks – Earnings were a trainwreck. The CEOs interview was a trainwreck. The business is still selling a product with an amazing brand. This makes me think of the Buffett quote: “I always invest in companies an idiot could run, because one day one will.” It seems like idiots are running a great business and will probably be fine.
  • Netflix- I missed this one on the dip and I still regret it. They’ve been hitting every step and patiently picking off deals that make sense. And they nailed the roast of Tom Brady. They are and will be the cultural zeitgeist.
  • Airbnb – I’ve been running my Airbnb on the top floor of my house for 6 months now. It’s sort of amazing how easy it is to get started. We put some smart locks on the doors, took some pictures and had our first few bookings within days. The majority of weekends are booked and some weekdays. The stock is coming down from an absurdly high valuation, but this is another amazing business I’ll be waiting on.

Author: fatbabyfunds