u/No_Consideration4594

I don’t understand how this new business will be different than Google cloud, other than in the corporate structure?

Can someone explain it?

Sorry for the weird title, not sure if I’m explaining this correctly. But I just added a vanguard municipal bond fund to my portfolio and only a certain percentage of the funds interest will be eligible for my state tax exemption.

As I understand it vanguard will publish a listing in early 2027 that has all the funds, states, and percentages…

But for people that have done this already and use turbo tax how does it work? Do I adjust the state tax on the 1099. Do I go in somewhere else and do it? I’m anticipating that this will be complicated and confusing so trying to get out ahead of it.

Any help would be appreciated. Thanks 🙏

Tencent Music is very cheap trading at a single digit PE multiple (8.98 pe) and FCF yield of 8% (7.76% adjusting for SBC). Dividend yield of 2.5%. Share count has dropped 4.13% over the last 3 years. Net cash of $3.07B.

Tencent Music is the clear market leader in streaming music in China and other countries in Asia. It enjoys a favorable competitive position due to its integration into the broader Tencent ecosystem (WeChat).

There are disruption fears from ByteDance backed Soda Music that has rattled short term sentiment. I believe these disruption fears are overdone. In the Q4 2025 TME reported a 5% drop in MAU’s but paying users rose 5.3% and monthly average revenue per paying user (ARPPU) also rose 7.2%. I think the paying user metrics are what really matter here. Also, they stopped reporting these metrics quarterly and will only report them annually instead of quarterly.

TME also owns pieces of Spotify and Warner Music. They are part of a consortium that is taking a 20% stake in Warner Music, so there's some optionality.

TME reported this week and beat on revenue and EPS. They have beat on both metrics for the last 6 straight quarters.

Because of the low valuation this is very much a heads we win, tails we won't lose much scenario. Like software, so far the disruption fears are theoretical and haven't manifested yet in the fundamentals. As a result, consistently beating their earnings and revenue targets will not change this narrative. I think this will take years to play out.

Not a lot has to go right here to have a favorable outcome. In a best case scenario the multiple rerates to its historical norm of around 15-18x while eps continues to grow. In a middle case scenario the multiple stays low, but earnings grow, and you are paid to wait with the dividend and share buybacks providing an additional boost. In a worst case scenario, there is some sort of geopolitical event, or China cracks down on its tech sector, and TME is delisted or loses most of its value.

Also, full disclosure, Chinese technology and media is way outside my circle of competence. I only understand this investment from a financial/fundamentals perspective and am weighting the size of my investment accordingly based on my ignorance.

Just noticed this this morning haven’t done any research.

Kyndryl provides technology services to companies like outsourcing data centers, data center colocation, technology management etc..

Some of the fundamentals look bad, like declining revenue, lumpy net income and eps.

But:
- current p/e - 14 / forward p/e - 6
- FCF yield - 12.30% (adj. for stock based comp - 11.36%)
- price to sales - 0.18

The best part is it has cash of $2.62 billion and its market cap is $2.76 billion. - NOTE- the service I was using had inaccurate data. They didn’t publish a balance sheet in the press release but it looks like they have net debt of like $1.6 billion.

Seems really cheap, obviously it’s gotta be cheap for a reason.

Anyone out ahead of me that has researched this company and can provide thoughts, insights, things to look out for etc?

Thanks 🙏

Topicus and Lumine reported earnings.

Topicus’s quarter was decent, Lumine’s wasn’t.

Anyone have any thoughts?

For me the buyback was the most puzzling thing to come out of this weekend.

For those that were in Omaha, was this addressed at any of the other conferences?

Did anyone like Adam Meade, Chris Bloomstran, or others comment on it?

Markel just reported earnings. they were expected to earn about $26 a share but swung to a loss of $18 a share primarily due to over $700 million of unrealized losses in their investment portfolio.

Tom Gayner who runs the portfolio is an astute investor with a good long term track record.

I think it’s just a really tough time to be a value investor.

So if you are looking at your portfolio and beating yourself up for underperforming. Stop. I think a lot of people are in the same boat. The index is ripping and a lot of value plays just aren’t working right now…