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 the Q3 2026 Portfolio Update)
Three Notable Items
“Charlie Munger’s Interview with Todd Combs”
A transcript from a 2022 conversation between Charlie Munger and Todd Combs. Thank you to Shane Parrish of Farnam Street for sharing it publicly.
Munger: “Warren used to say, ‘You really don’t need to be very smart to be a successful investor’, and I think he was right. It’s good to have the extra mental horsepower Henry Singleton had. That is helpful, but it’s perfectly possible to do splendidly well if you have the right temperament… I’m not a polymath. I’m a guy who has taken a moderate obsession and a long attention span and turned them into pretty good results. Of course, having a long attention span will help you a lot if you are reasonably smart.”
“Welcome to Skydance! Movies, TV ... and Massive Debt”
Paramount Skydance has completed the acquisition of Warner Bros. Discovery. One critical issue, as was the case with the prior transaction to create WBD, is that Skydance emerges from this transaction with massive financial leverage, which is particularly problematic given uncertainty about the long-term trajectory for the linear TV business. Time will tell whether management has appropriately prepared themselves for these headwinds, or if they will soon encounter the same stumbling blocks as their predecessors.
“Disney jacked up the price of Disney+ and Hulu over the past 3-4 years, while keeping the bundled price much more compelling; over time, they’ve basically walked you up to a combined price by raising the individual prices so aggressively… What I suspect will happen is a similar progression, where the HBO Max and Paramount+ prices go up far faster than normal, while the price for the bundle of the two goes up very slowly.”
“Big booze is reinventing itself”
A podcast from The Economist discussing how different companies are responding to changes in the alcoholic drinks industry. I’ll have more to say about this topic on Thursday in an update on Constellation Brands (STZ).
Carlsberg CEO Jacob Aarup-Andersen: “When we have the full-scale portfolio, including soft drinks, we actually increase the value and the resilience of our beer portfolio. Why? Because we become much more relevant to our customers - the big retailers, the big pop chains, etc. - and we become more relevant to the consumer because we cater to all occasions… I think that’s key. The average consumer globally consumes around eight cups of liquid every day. In emerging markets, they will purchase one to two of those eight cups. In developed markets, they will purchase four to five of those eight cups. They will definitely purchase more beverages in ten years than they do today. We are not exiting beer or alcohol, but we are making sure we have a portfolio that caters to all consumer needs… We see it being synergistic from the purchase of the can down to the consumer moment.”
TSOH Updates
Here’s the updated TSOH research list for the past six months:
Monday’s research report will examine the turnaround of Ralph Lauren (RL).
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.