TSOH Weekly Roundup (07/10/26)
Welcome to another edition of TSOH Weekly Roundup.
Each update features a Chart of the Week, along with a brief discussion on three news items relevant to companies in the TSOH investable universe.
Chart Of The Week (from “Nike: Conditioning Phase”)
Three Notable Items
“Pat Dorsey: The Nuances of Investing in Moats”
I’ve long been a fan of investor Pat Dorsey; for one reason, he helped me to appreciate things about Meta’s business that led to an investment in 2018. (“If God invented an advertising platform, it would be called Facebook.”) In this interview, Dorsey discusses his investment philosophy, along with lessons learned over the years about businesses, moats, and management teams.
Assessing management teams: “My biggest goal is to look for humility; it’s much easier to find management teams who are unlikely to blow up than those who are likely to do amazing things. I’m mainly focused on avoiding that left tail… One of the common attributes of [fraud or hubris] is people who aren’t willing to listen; voices in the room are saying ‘this is not a good idea’, and they don’t listen… How do [leaders] talk about their team and the people around them? How do they self-reflect on what might have gone differently?”
“The latest in our company transformation”
This is paradoxical given that Microsoft has reported constant currency revenue growth of 10% or higher in 35 of the past 36 quarters, yet there’s a clear strategic adjustment underway at the company to address shifting business models and competitive dynamics. This memo, from Chief People Officer Amy Coleman, sheds light on the internal transformation of Microsoft.
“The way technology is built, deployed, and used is transforming faster than at any point in my time here [Coleman joined Microsoft in 2009]. Customers’ needs are shifting, the business models that serve them are shifting, and that means the work itself – what we do, where we focus, and how we’re organized – has to transform too. Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it.”
“PepsiCo’s CEO Is Navigating GLP-1s and Inflation”
A brief WSJ interview with PepsiCo CEO Ramon Laguarta. As it relates to the TSOH investable universe, I think the industry evolution covered in this discussion is relevant for companies like Fever-Tree, Celsius, and Monster.
“Consumers are changing their expectations on every calorie they put in their body. Everything we are doing - adding protein to our snacks and beverages, adding fiber, functional hydration, caffeine - all those are benefits consumers expect… Taste is a table stake; then we need to provide other benefits.”
TSOH Updates
Here’s the updated TSOH research list for the past six months:
Monday’s post will be an update on Comcast (CMCSA).
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.