Question 1

Please feel free to answer whether you hold it or not.

Accepted Answer

At the end of 2024 and beginning of 2025 it was Visa for me, primarily due to relative cheaper valuation. In addition I believe its Network of Networks strategy is attractive on a long-term basis.

However, given current 33-37 p/e I think it is a bit stretched for both, unless your time horizon in 3+years. Overall great businessess and I consider both to be a long-term hedge against inflation, but I would be interested to add in case price decreases to 28 p/e for Visa and around 30-31 p/e for Ma.

Question 2

With regards to valutaion I assume it is correct to get Enterprice Value first by discounting its free cash flows coming from its OPERATING businessess and then increase the EV by net debt because in BRK case it is negative due to huge cash / investments pile. The trick is whether to take equity investments and government bonds at 100% market value or take it with a discount.

Another thing is its potential liabilities from insurance business, i.e. how to value them. Mistakes can be large, so the question is where it is accounted for  what the off-balance sheet commitments / liabilities the are (if any).

Accepted Answer

Do you mean decrease the EV by net debt? I.e. as it is negative it is effectively decreasing EV.

Question 3

Question 4

Question 5

It is now stands at around 5Bn, which is ~10 times annual CFO. It seems to me even given Domino`s track record that a lot on relative baiss.

Question 6

Some key ratios I am interested in would be ROIC and ROCE.

Question 7

I.e. its Net Income is pretty close to its FCF because of this. And how does it compare to other BigTechs?

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