TSOH Weekly Roundup (05/22/26)
Welcome to the TSOH Weekly Roundup, which is sent out each Friday at 11am ET. Each update features a Chart of the Week and a brief discussion on three news items that are relevant to the TSOH investable universe.
Chart Of The Week (from “Airbnb: Room To Breathe”)
Three Notable Items
“Roblox Announces Inaugural Share Repurchase Program”
While the numbers are relatively small – a $3 billion authorization, with the intent to buy back up to $1 billion over the next year – this is a noteworthy development. My view is that Roblox management has been more extreme than most public companies in their indifference to short-term P&L volatility, which helps to explain why shareholders have been on a roller coaster ride over the past five years (and with the stock falling ~40% over that period).
Roblox CFO Naveen Chopra: “Today’s authorization of Roblox’s first-ever share repurchase program is a testament to our confidence in the long-term opportunity ahead. Investing in continued growth will always be our highest priority, but the strength of our balance sheet and FCF generation allows us to support industry leading innovation while simultaneously reducing dilution.”
“CNBC’s Full Interview With Amazon Founder Jeff Bezos”
A wide-ranging interview with Jeff Bezos, including his views on wealth distribution and U.S. tax policy, the AI revolution, and data centers in space.
Bezos (38th minute): “I think so many people are afraid AI is going to take their job. I think there is going to be a labor shortage… It’s going to elevate people. Let’s say you’re a software engineer. The analogy I use is you’ve been digging out a basement for your house with a shovel, and somebody is about to hand you a bulldozer… We are going to have so much productivity in our economy… The root of civilizational wealth is invention.”
“Berkshire Hathaway Rekindles Its Tortured Love Affair With Airlines”
For the next sign of change at Berkshire post-Buffett, see the latest 13-F, which included a large increase to their stake in Alphabet and a new position in Delta (as a reminder, Buffett sold his U.S. airline basket in April 2020, which he discussed at the annual meeting). I’ve been uncertain on the role that (new) large equity investments were likely to play at Berkshire in the years ahead; it appears they will still be part of the capital allocation toolkit.
“Warren Buffett has had a tortured relationship with airline investments… His successor, Greg Abel, is showing an early fondness for them, too, with Berkshire taking a $2.6 billion position in Delta (DAL). Buffett told The Wall Street Journal that he wasn’t involved in Berkshire’s new Delta position.”
TSOH Updates
Here’s the updated TSOH research list for the past six months:
Monday’s research report will be an update on Vital Farms (VITL).
While the stock price has plummeted ~70% over the past year, ten different insiders have bought VITL shares on the open market in the past two weeks.
Have a great weekend!
NOTE - This is not investment advice. Do your own due diligence.
I make no representation, warranty, or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information presented in this report. Assumptions, opinions, and estimates expressed in this report constitute my judgment as of the date thereof and are subject to change without notice. Projections are based on a number of assumptions, and there is no guarantee that they will be achieved. TSOH Investment Research is not acting as your advisor or in any fiduciary capacity.