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 “Dollar Tree: Weathering The Storm”)
Three Notable Items
“The cult $4.99 rotisserie chicken defying inflation”
In the July 2021 Costco initiation, I opened with the story of Jim Sinegal and the $1.50 hot dog: “If you raise the f-ing hot dog price, I’ll kill you. Figure it out.” While it doesn’t rival the lore around the hot dog, Costco is also well known for its $4.99 rotisserie chickens, with ~157 million sold globally in FY25. This Financial Times article details the investments Costco has made in recent years which have helped them to maintain the $4.99 price point.
“Costco has devised ways to mitigate losses on rotisserie sales. One was to construct the $500 million slaughterhouse, which has reshaped a rural corner of the US Midwest since it started operations in 2019. Building the plant gave Costco negotiating leverage with third-party poultry suppliers, according to Walt Shafer, who was COO at Lincoln Premium Poultry, the Costco subsidiary that runs the Nebraska chicken business… Birds killed at the Nebraska slaughterhouse meet about a third of chicken sales at the retailer’s hundreds of US stores… Costco’s decision to open the Lincoln plant was aimed at vertical integration. Far from the chicken heartland of the US South, Costco has recruited ~100 farms to raise chickens under 15-year contracts.”
“How Celsius Became the King of Normie Energy Drinks”
More on Celsius in Monday’s update, but this Bloomberg article details the company’s rise over the past 10-15 years, from near extinction to a brand portfolio accounting for ~20% of the U.S. energy drink market (MULO+ W/C).
“From 2000 to 2013, says beverage industry consultant Mike Sweeney, more than 1,600 energy drinks tried to get in on the action. Celsius managed not only to outlast most of its competition but also to find itself near the top of the category long dominated by Red Bull and Monster.”
“PG&E, Edison Fall on California Wildfire Liability Worries”
An update relevant to the discussion on Berkshire Hathaway Energy (BHE) and PacifiCorp in “Berkshire Hathaway: Transition” (March 2026). As Warren Buffett bluntly stated at the 2025 annual meeting, “BHE is worth considerably less than it was two years ago based on societal factors. The public utility business is not as good a business as it was a few years ago.”
“California lawmakers introduced a bill that would update the state’s wildfire response, but would not move liability away from publicly traded utilities… PG&E said the bill ‘does not adequately address the financing risks created by California’s current wildfire liability framework’.”
TSOH Updates
Here’s the updated TSOH research list for the past six months:
Monday’s research report will be an update on Celsius (CELH).
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.