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Brookfield Corp.: Owner-Operated Long-Term Capital Allocation Platform

January 13, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Diary, Equities, Ideas, Transcripts

Tito Avila of LIS Capital presented his in-depth investment thesis on Brookfield Corporation (US/Canada: BN) at Best Ideas 2026.

Thesis summary:

Brookfield is not a traditional asset manager but rather a capital allocator overseeing a diverse ecosystem of businesses. The company controls over $180 billion of discretionary capital and functions as a platform designed for long-term compounding. Structurally, the entity relies on three main pillars: a majority stake in Brookfield Asset Management (BAM), which serves as the fee and carry engine; Brookfield Wealth Solutions (BWS), an insurance platform providing long-duration permanent capital; and directly owned Operating Businesses in infrastructure, renewables, real estate, and private equity. This configuration allows BN to upstream cash flows from subsidiaries and redeploy them into high-return opportunities across the ecosystem, optimizing for returns on invested capital.

The thesis is underpinned by sustainable cash flow growth driven by structural tailwinds, including the demand for infrastructure fueled by AI, the energy transition, and an aging population requiring retirement solutions. Tito notes that BN is positioned to capitalize on the consolidation of the alternative asset management industry and the growth of private credit, reinforced by the Oaktree acquisition. Management guidance implies up to 25% annual growth in distributable earnings (DE) over the next five years, supported by the scaling of fee-bearing capital and the compounding of the insurance float. BWS is particularly strategic, utilizing an investment-led model to generate spread earnings by allocating float into high-quality credit and real assets where the firm possesses deep expertise.

A critical component of the investment case is the owner-operator culture and strong alignment of interest. Senior management holds a 20% stake in the company, fostering a long-term horizon and a focus on downside protection. Tito highlights BN’s history of contrarian capital allocation, utilizing a conservative balance sheet to invest during periods of stress when capital is scarce. While the real estate arm (BPG) has faced cyclical headwinds, the debt is structured as non-recourse to the parent, containing systemic risk. The strategy involves recycling capital from mature assets into higher-return opportunities, a process accelerated by the anticipated realization of accrued carried interest, which Tito describes as a “hidden gem” with $12 billion in realizations expected over the next five years.

Regarding valuation, the shares recently traded at a meaningful discount to peers and roughly a 30% discount to management’s estimate of plan value. Tito attributes this gap to structural complexity, lack of inclusion in major U.S. equity indices, and lower market visibility relative to competitors. A conservative sum-of-the-parts analysis, which marks public holdings at market and applies haircuts to private assets and carry, suggests limited downside. Even without a re-rating, the thesis projects a long-term IRR in the mid-teens to low-20s percent range, driven primarily by organic cash flow growth and reinvestment. Any narrowing of the discount through potential catalysts, such as eventual index inclusion or improved communication, would provide optional upside.

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About the instructor:

Tito Avila is a founding partner at LIS Capital, a Brazil-based value investment firm with an 11+ year track record, where he leads the firm’s International strategy, focusing on companies with compelling risk-return profiles. He graduated in Economics from FEA-USP.

Akamai: Underappreciated Shift to Security and Compute Drives Value

January 9, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Diary, Equities, Ideas, Transcripts

Steven Gorelik of Firebird Management presented his in-depth investment thesis on Akamai Technologies (US: AKAM) at Best Ideas 2026.

Thesis summary:

Akamai is a “growth at a reasonable price” opportunity navigating a pivotal business transformation. The core thesis rests on the company’s evolution from a legacy Content Delivery Network (CDN) provider into a diversified enterprise security and cloud compute platform. While the traditional delivery business—which historically dominated revenues—has faced secular headwinds from customer DIY efforts and competition, Akamai has successfully reinvested cash flows into higher-growth segments. The Security and Compute divisions now generate approximately two-thirds of total revenue and are growing at double-digit rates, effectively offsetting the decline in the legacy delivery segment. This shift marks a critical inflection point where overall revenue growth is expected to re-accelerate from mid-single digits to high single or double digits.

Akamai’s competitive advantage leverages its massive distributed edge network, comprising over 4,000 locations and relationships with 1,000+ ISPs globally. This infrastructure provides a unique moat for its Security business, which has grown to over $2 billion in revenue through acquisitions and cross-selling to an existing base of large enterprise clients. Furthermore, the company’s entry into the Compute market, catalyzed by the acquisition of Linode, capitalizes on the need for distributed, low-latency processing. This is particularly relevant for emerging workloads such as AI inference, where Akamai’s edge capabilities offer distinct performance and cost benefits compared to centralized hyperscalers. The company’s deep relationships with CTOs and CIOs facilitate the cross-selling of these new services to a sticky enterprise customer base.

From a capital allocation perspective, management has demonstrated discipline by balancing M&A with shareholder returns. Since 2014, Akamai has generated $6.6 billion in FCF, deploying $3.5 billion toward strategic acquisitions to build out its security and compute capabilities, while returning $5 billion to shareholders via buybacks. This has reduced the share count by 16% over the last decade, despite regular equity-based compensation. Consequently, FCF per share has compounded at 9% annually. The transition to higher-margin Security and Compute segments is expected to further support profitability, with these divisions boasting EBITDA margins comparable to or higher than the legacy business.

Valuation remains compelling relative to peers and historical averages. The shares recently traded at a free cash flow yield of approximately 5.2%, representing a discount to the company’s historical trading range. Steve noted that pure-play competitors in the security and edge compute spaces typically command significantly higher multiples. As the revenue mix continues to shift toward these faster-growing segments, Akamai is positioned for potential multiple expansion. With FCF expected to grow by 25% over the next three years—and potentially faster on a per-share basis due to buybacks—the current valuation offers an attractive entry point for a business with accelerating fundamentals.

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About the instructor:

In addition to being Head of Research at Firebird Management, Steve Gorelik is the Lead Fund Manager of Firebird U.S. Value Fund as well as portfolio manager of Firebird’s Eastern Europe and Russia Funds. He joined Firebird in 2005 from Columbia University Graduate School of Business while completing education from a highly selective Value Investing Program. Prior to business school, Steve was an operational strategy consultant at Deloitte working with companies in various industries including banking, healthcare, and retail. He holds a BS degree from Carnegie Mellon University as well as a CFA (chartered financial analyst) charter and a membership in Beta Gamma Sigma honor society. Steve serves on the number of supervisory boards of listed and private companies in the Baltics. He speaks Russian, English and his native Belarussian.

Jeff Auxier on His Timeless Investment Principles, 2026 Outlook, and Fiserv

January 9, 2026 in Audio, Best Ideas 2026, Diary, Equities, Ideas, Transcripts

Jeff Auxier of Auxier Asset Management discussed his long-term investment approach and shared his thoughts on intelligent investing in a speculative market environment at Best Ideas 2026.

Overview:

Jeff shares key insights drawn from a career spanning over four decades, starting with a cold call to Warren Buffett in 1982. Jeff offers a sobering yet constructive analysis of the current financial landscape, which he argues is characterized by historic levels of speculation, record margin debt, and a dangerous disconnect between price and value in “no-revenue” companies.

Jeff details his philosophy of “tenacious research,” focused on uncovering the “operating reality” of a business rather than following market sentiment. He explains his strategy of hunting for the “double play” — buying high-quality, cash-generating businesses at distressed multiples when they face temporary, fixable problems. The discussion moves beyond general philosophy into specific actionable analysis, comparing the risks of holding high-multiple compounders like Costco in the current environment against the opportunities available in beaten-down sectors such as medical devices and payment processors.

Furthermore, Jeff provides a nuanced take on the consumer staples sector, analyzing how the rise of GLP-1 weight-loss drugs and shifting alcohol consumption habits are disrupting traditional defensive moats. He also discusses the macro risks posed by Chinese deflationary exports and the potential unwinding of private equity valuations. Ultimately, this conversation serves as a guide on how to maintain discipline and protect capital during periods of market exuberance while preparing for the opportunities that inevitably arise when leverage unwinds.

Highlights:

  • Fiserv Thesis: Double-digit FCF yield, management change, fixable problems, and the potential for a “double, triple play”.
  • Navigating Speculative Bubbles: Why current margin debt levels and leveraged ETFs create a fragile market structure similar to past historic peaks.
  • The “Double Play” Strategy: How to identify companies with fixable problems to capture returns through both earnings recovery and multiple expansion.
  • Valuation Discipline: Why Auxier is trimming positions in high-quality compounders like Costco and avoiding “torpedoes”—stocks with high expectations and high valuations.
  • Sector Opportunities: An analysis of value pockets in healthcare (Zimmer, Becton Dickinson) and payments (Fiserv) versus the risks in footwear (Nike).
  • The GLP-1 Disruption: How weight-loss drugs and changing social habits are fundamentally altering the thesis for food, beverage, and alcohol stocks.
  • Global Macro Risks: The impact of China’s deflationary export pressure on global commodities and chemicals.
  • The Farmer’s Mindset: Lessons on humility, work ethic, and patience drawn from owning and operating a working farm.

Thesis summary:

Fiserv (US: FISV) is a prominent provider of back-office processing and financial services technology, distinguished by a nearly four-decade track record of double-digit earnings growth. Historically, the company has commanded a premium valuation due to its consistency, with a P/E ratio averaging over 30x during the last decade and trading as high as 91x earnings in 2000. The company strengthened its market position through the acquisition of First Data, integrating merchant services with its core banking infrastructure capabilities. Jeff identifies this as a high-quality business model that has recently fallen out of favor due to short-term operational headwinds in a speculative market environment that currently penalizes earnings misses severely.

The core opportunity arises from a recent growth deceleration where the company missed double-digit targets, delivering approximately 4% growth instead. This deviation from historical performance caused the stock to decline roughly 40%. Jeff views this sell-off as a classic overreaction, noting that the market is currently disregarding quality in favor of speculative momentum. The thesis is predicated on the idea that the underlying issues causing the growth slowdown are fixable rather than structural. The company possesses a robust balance sheet and a business model that generates substantial cash flow, characteristics that historically protect capital during market downturns.

A key driver for the potential turnaround is the appointment of a new management team, which Jeff believes is capable of correcting the operational stumbles. The strategy involves purchasing the equity when the company faces “fixable problems,” allowing for a “double, triple play” scenario driven by both earnings recovery and multiple expansion. Jeff contrasts this opportunity with other high-quality names like Nike, arguing that Fiserv offers a superior risk-reward profile because the valuation has already compressed significantly, providing a wider margin of safety compared to consumer stocks that remain priced for perfection.

Regarding valuation, the shares recently traded at approximately 7x to 8x earnings, representing a historic discount relative to the company’s long-term average P/E of over 30x. Jeff noted that the firm began accumulating shares when the multiple compressed to 12x earnings as the price dropped into the $120s. In addition to the depressed earnings multiple, the stock offers a double-digit FCF yield. This valuation disconnect suggests that the market is pricing Fiserv as a permanently impaired asset rather than a proven compounder experiencing a temporary cyclical trough.

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About the instructor:

Jeff Auxier began lessons in finance early–at age 11, mowing the lawn of Robert Pamplin Senior the former long-time CEO of Georgia Pacific and recipient of the “World’s Top CEO Award”. Mr. Pamplin tutored Jeff on living a life of ethics. As Jeff puts it, “Mr. Pamplin always put his shareholders first and believed business should be transparent. He said the language of business is accounting, and that if you can’t speak the language, you can’t make money.” In 1981, Jeff graduated with honors from the University of Oregon with a degree in Finance and an emphasis on accounting. Immediately, Jeff began calling or personally meeting with some of his investment heroes, long before they became today’s financial rock stars. Names like Warren Buffett. Not yet known as the Oracle of Omaha, Mr. Buffett graciously took several of Jeff’s calls and offered advice, most notably, “Number one don’t lose your principal and number two, never violate the first rule.” To this day, the cornerstone of the Auxier Focus Fund is respect for the power of compounding.

Subsea 7: Saipem Merger Creates Scale and Shareholder Value

January 8, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Diary, Equities, Featured, Ideas, Transcripts

Bob Robotti of Robotti & Company Advisors presented his investment thesis on Subsea 7 (Norway: SUBC, US: SUBCY) at Best Ideas 2026.

Thesis summary:

Subsea 7 has evolved from a traditional offshore oil and gas service provider into a diversified engineering and installation leader encompassing offshore wind, carbon capture, and hydrogen applications. Bob highlights that the company is currently undergoing a transformational merger with Saipem, creating the industry’s largest fleet and a combined entity with approximately €21 billion in revenue, a scale comparable to Halliburton. This consolidation follows a decade of industry attrition where Subsea 7 opportunistically acquired distressed competitors and assets—such as a $1 billion portfolio purchased for $800 million—strengthening its position at a fraction of replacement cost.

The industry is characterized by formidable barriers to entry, illustrated by the failure of well-capitalized entrants like Ceona, which possessed modern vessels but lacked the critical engineering track record required by major oil companies to sanction multibillion-dollar projects. Consequently, the market is now dominated by a few key players, primarily TechnipFMC and the Subsea 7/Saipem combination. The “Subsea Alliance” with Schlumberger further entrenches Subsea 7’s position by offering integrated FEED studies and execution, effectively disintermediating third-party engineering firms. This integration improves project economics for operators, making offshore developments viable at lower commodity prices while securing a sticky customer base that often awards contracts without competitive bidding.

The merger with Saipem is driven by industrial logic rather than financial engineering alone. While the companies have guided for €350 million in cost synergies, Bob argues the revenue synergies from fleet optimization are the primary value driver. The combined entity can deploy specific vessel types—such as J-lay or S-lay assets—more efficiently across global projects, minimizing non-revenue-generating transit times and maximizing utilization. With Saipem reporting its enabling assets fully booked for the next two years, this supply-demand tightness provides pricing power that is not yet fully reflected in reported earnings, which are currently weighed down by lower-margin legacy contracts awarded during leaner periods.

Growth is further supported by an expanding addressable market that now includes substantial gas developments driven by global LNG demand and energy security mandates in regions like the Mediterranean and Mozambique. Additionally, “tie-back” projects allow operators to connect new fields to existing infrastructure economically, generating volume for installation contractors with limited capital outlay for the client. Bob notes that Kristian Siem, a key shareholder and architect of the merger, provides the disciplined owner-operator mindset crucial for capital allocation in this cyclical industry. The combined business is poised to benefit from a growing pipeline of large-scale projects and a resurgence in geographies like Brazil, West Africa, and Mexico.

Regarding valuation, Subsea 7 recently traded at approximately 10x standalone earnings, a level Bob considers modest given the improved earnings power and the marked disparity with US-listed peer TechnipFMC, which commands a substantially higher multiple. The thesis posits that as the backlog churns into higher-priced contracts and merger synergies materialize, EBITDA margins—already approaching 20%—will expand further, driving robust FCF generation. Additionally, shareholders are expected to receive approximately $1 billion in distributions prior to the merger closing in late 2026. Bob views the current valuation as paying a mid-to-low multiple on future earnings power, offering a margin of safety for a market leader in a recovering sector.

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About the instructor:

Bob Robotti is the Founder, President and CIO of Robotti & Company Advisors, a registered investment advisor based in New York City. Guided by the classic tenets of value investing, VALUATION MATTERS. Robotti & Company Advisors uses a proprietary research approach to identify companies which trade for substantial discounts to their future free cash flows, yet are misunderstood, neglected, or just out-of-favor, so discounted by markets. Once identified, Robotti’s investment team focuses on deep primary industry and company research to select investment holdings through the lens of a long-term business owner. In this capacity, Bob is currently on the boards of AMREP Corporation (NYSE:AXR), Pulse Seismic Data Inc. (TSX: PSD) for which he also serves as Chairman, and Tidewater, Inc. (NYSE:TDW). Bob previously was on the board BMC Building Materials Holding Corporation, now amalgamated into Builders FirstSource, the premier and differentiated distributor of building structural products to homebuilders. Prior to founding Robotti & Company in 1983, he was the CFO of Gabelli & Company. Bob holds a BS in Accounting from Bucknell University and an MBA from Pace University.

Celsius: Capitalizing on the “Better-For-You” Shift in Energy Drinks

January 8, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Best Ideas Conference, Diary, Equities, Ideas, Transcripts

Elliot Turner of RGA Investment Advisors presented his in-depth investment thesis on Celsius Holdings (US: CELH) at Best Ideas 2026.

Thesis summary:

Celsius is a differentiated brand in the energy drink category, distinguished by a “better-for-you” value proposition that appeals to health-conscious consumers and fitness enthusiasts. Unlike incumbents Red Bull and Monster, which cultivate “extreme sports” or “blue collar” identities, Celsius focuses on functional energy with zero sugar and proprietary ingredients, a positioning that has successfully expanded the total addressable market by attracting women and former coffee drinkers who historically rejected the category. The recent acquisition of Alani Nu transforms the business into a diversified holding company, adding a complementary, female-centric brand known for viral social media marketing and a high-velocity limited-time offer (LTO) strategy that drives strong customer recurrence.

The core growth algorithm is predicated on category expansion rather than merely capturing market share from legacy players. Elliot notes that while the U.S. energy drink market is projected to grow in the mid-single digits, Celsius and Alani Nu are poised to outpace this by targeting the $100 billion coffee market, where consumers spend 3-4x more annually than on energy drinks. The integration of Alani Nu into the PepsiCo distribution network acts as a primary catalyst, providing “rocket fuel” for the brand by expanding its presence from mass retailers like Target into high-frequency channels such as convenience stores, where it is currently under-penetrated.

Operationally, the thesis acknowledges the friction caused by the transition to the PepsiCo distribution system, specifically inventory destocking that temporarily compressed top-line growth and weighed on the stock price. However, Elliot views these issues as transitional “growing pains” rather than structural defects, noting that scanner data indicates improving sell-through trends. The partnership with PepsiCo, which owns an approximate 11% stake in the company, solidifies Celsius as the “category captain” within the Pepsi system, a status reinforced by the appointment of a former Pepsi executive as COO to improve supply chain coordination and data sharing.

Beyond domestic expansion, international markets represent a substantial, largely unpriced call option for the business. While competitors like Monster generate roughly 40% of their revenue internationally, Celsius currently derives only about 5% from outside the US, offering a long runway for growth as it leverages global partners like Suntory. Additionally, the company maintains a robust balance sheet with a net cash position and has authorized a $300 million share repurchase program, signaling management’s intent to take advantage of price dislocations and allocate capital efficiently as the business matures.

Regarding valuation, the shares recently traded at approximately 17x forward EBITDA, a level Elliot describes as compelling for a company with this growth profile. This multiple sits at the low end of Monster’s historical ten-year trading range of 17x to 25x, despite Celsius growing at a faster rate than Monster did during comparable periods. With gross margins expected to expand from roughly 50% toward the mid-to-high 50s and free cash flow projected to approach $1 billion, the thesis models an annualized IRR of nearly 17% over a five-year horizon.

For more on Celsius, see Edward Chang’s presentation at Best Ideas 2026.

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About the instructor:

Elliot Turner is a co-founder and Managing Partner, CIO at RGA Investment Advisors, LLC. RGA Investment Advisors runs a long-term, low turnover, growth at a reasonable price investment strategy seeking out global opportunities. Elliot focuses on discovering and analyzing long-term, high quality investment opportunities and strategic portfolio management. Prior to joining RGA, Elliot managed portfolios at at AustinWeston Asset Management LLC, Chimera Securities and T3 Capital. Elliot holds the Chartered Financial Analyst (CFA) designation as well as a Juris Doctor from Brooklyn Law School.. He also holds a Bachelor of Arts degree from Emory University where he double majored in Political Science and Philosophy.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Global Atomic: Strategic Bet on the Looming Uranium Supply Deficit

January 8, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Best Ideas Conference, Diary, Equities, Ideas, Transcripts

Will Thomson of Massif Capital presented his in-depth investment thesis on Global Atomic Corp. (Canada: GLO) at Best Ideas 2026.

Thesis summary:

Global Atomic is a counter-cyclical opportunity in the uranium sector, distinguishing its management team as rare “Timers” who successfully acquired and advanced the Dasa Project during market lows. Located in Niger, the Dasa Project is described as a Tier-1, high-grade deposit with a 23-year mine life and 73 million pounds of reserves, notably standing as the only greenfield uranium mine currently under construction globally. Unlike its peers, Global Atomic is positioned to bring supply online in late 2027 or early 2028, timing its entry to coincide with the “teeth” of a structural supply-demand deficit in the nuclear fuel market.

The core thesis rests on a significant dislocation between the share price and fundamental value, driven by what Will characterizes as “headline” political risk and temporary financing delays. Following the 2023 military coup in Niger and the revocation of permits for competitors like Orano and GoviEx, the market has treated the jurisdiction as uninvestable. However, Will argues this view is superficial; the peer revocations were legally grounded in mining codes regarding non-performance, whereas Global Atomic has continued construction without interruption. The Niger government, which holds a 20% stake and relies on mining for 12% of its budget, is aligned with the project’s success to reverse declining national production.

Financing uncertainty has further depressed the valuation, specifically regarding the delay of a debt package from the U.S. International Development Finance Corporation (DFC). Will notes that the loan process advanced to the Investment Committee in December 2025 with a positive recommendation, and a resolution is anticipated shortly. Even if this primary option fails, management has cultivated alternative paths including strategic partnerships, royalty deals, or equity issuance. Stress-testing the thesis against a “worst-case” equity financing scenario involving ~35% dilution still yields a probability-weighted return exceeding 60%, suggesting the downside is capped while preserving exposure to the asset’s core value.

While the investment is driven by company-specific value, it is supported by a “favorable but insufficient” macro backdrop. Will emphasizes that while most uranium theses rely solely on unpredictable commodity price appreciation, Global Atomic offers a fundamental value arbitrage that works even if uranium prices remain static. The company has de-risked revenue by pre-selling 43% of the first five years of production to utilities, creating an asymmetry where investors can buy a fully permitted, partially built asset at a price equivalent to its exploration phase value.

The shares recently traded at CAD $0.97, a level that implies a uranium price of approximately $60 per pound, significantly below the long-term contracting price of ~$85 per pound. Will estimates that a DCF analysis using a 12% discount rate and current spot prices yields a value closer to CAD $3.00 per share. The probability-weighted expected return is projected at 89% over a 12 to 24-month holding period, with individual upside scenarios reaching as high as 300% as the project moves toward production.

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About the instructor:

Will Thomson is the Managing Partner at Massif Capital, a value-oriented investment partnership focused on global opportunities in energy, basic materials and industrials. Massif invests principally in businesses with long lived assets that generate predictable cash flows and require not only capital allocation acumen from management but also a keen focus on operational excellence. The investment practice is primarily concerned with the nature of risk and value as it relates to protecting, enhancing and deploying the irreplaceable capital of the firm’s investors into a concentrated portfolio of economically productive assets.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

PBAM: Well-Run SoCal Bank With Top-Decile ROA, Uplisting Potential

January 8, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Diary, Equities, Ideas, Transcripts

Javier López Bernardo of BrightGate Capital presented his in-depth investment thesis on Private Bancorp of America (US: PBAM) at Best Ideas 2026.

Thesis summary:

PBAM is the holding company for CalPrivate Bank, a La Jolla-based institution focused on serving high-net-worth individuals, professionals, and closely held businesses in coastal Southern California. Javier outlines a thesis predicated on the structural advantages of well-run Californian banks, which benefit from the region’s massive economy and a vibrant ecosystem of small and medium-sized enterprises often underserved by larger competitors. With approximately $2.6bn in assets and $2.3bn in deposits across just seven branches, PBAM exhibits exceptional branch productivity. Deposits per office recently stood at $366m, substantially higher than the national average of $221m, providing a dense revenue base relative to fixed costs.

Since Rick Sowers joined the leadership team in 2018—later becoming CEO in 2020—the bank has demonstrated robust operational leverage and disciplined credit underwriting. The efficiency ratio improved from 74% in 2018 to below 50% recently, driven by deposit growth and cost control. Simultaneously, the loan portfolio has maintained strong credit metrics; approximately 80% of loans are secured by real estate with a conservative weighted average loan-to-value (LTV) ratio of 53%. Net charge-offs have been negligible in recent years, reinforcing the stability of the asset base. These factors have driven top-decile profitability, with recent ROA and ROE figures reaching approximately 1.8% and 18%, respectively, outperforming the long-term industry average ROA of 1.2%.

Javier characterizes PBAM as a GARP opportunity with distinct short-to-medium-term catalysts. The stock currently trades over the counter (OTC) with limited liquidity and virtually no sell-side coverage. Management has indicated an interest in uplisting to a major exchange like the Nasdaq, potentially in the 2026-2027 timeframe. Moving up the “Value-Add Bank Lifecycle Ladder” through uplisting would likely enhance liquidity, trigger index inclusion (such as the Russell 2000), and expand the multiple. Even barring an immediate uplisting, the bank possesses an ample runway for organic growth, with internal targets to double the asset base over the next three to five years without diluting shareholders.

In terms of valuation, shares recently traded at approximately 1.3x P/BV. Javier posits this valuation is disconnected from the bank’s fundamental quality, specifically its ability to sustain ROAs of 1.5% and ROEs of 15% on 10x leverage. Employing a residual income framework with a 50% reinvestment rate—implying a sustainable growth rate of 7%—the current entry price supports prospective IRRs in the mid-teens (12-14%). The investment offers an asymmetric risk profile where downside is protected by tangible book value and conservative lending, while upside is driven by continued compounding and potential valuation rerating upon uplisting.

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About the instructor:

Javier López Bernardo serves as Portfolio Manager (equities and high yield) at BrightGate Capital SGIIC, an independent asset management boutique company based in Madrid, Spain. He holds a Bachelor in Business Administration (major in finance) from the Universidad Complutense de Madrid, a Master in Corporate Finance and Investment Banking from the IEB and a Master in Economics from Kingston University, where he also earned a Ph.D. in Economics. His academic research on equity markets and growth theory has been published in leading international journals. He is a CFA Charterholder and was a two-year full scholarship recipient of the Ramón Areces Foundation. He is a lecturer for the CFA programme and also at the Advantere School of Management, where he teaches asset management and behavioural finance.

Intrepid Potash: Fertilizer Recovery Play, With Lithium/Land Optionality

January 7, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Diary, Equities, Ideas, Transcripts

Michael Melby of Gate City Capital Management presented his investment thesis on Intrepid Potash (US: IPI) at Best Ideas 2026.

Thesis summary:

Intrepid Potash is a diversified minerals company operating in three segments. The Potash segment produces potash from three solution mines. The Trio segment mines and sells langbeinite, a specialty fertilizer containing potassium, magnesium, and sulfur, which Intrepid markets under the Trio brand name. The Oilfield Solutions segment owns land and water assets in the Permian Basin and sells products and services to energy producers.

Intrepid Potash has a market capitalization of $365 million and with $77 million in net cash, has an enterprise value of $288 million. In 2025, Mike expects Intrepid to generate $297 million in revenue, $61 million in EBITDA, and $27 million in free cash flow. Intrepid recently traded at attractive valuation metrics of 5.4x EV/EBITDA, 0.9x EV/Revenues, 0.7x Price/Tangible Book Value, and a 10% free cash flow yield.

Intrepid also has several valuable assets which might not be obvious to outside investors. In 2023, Intrepid entered into a cooperation agreement with XTO (a subsidiary of Exxon Mobil) regarding Intrepid’s potash mining operations at Carlsbad, New Mexico (located within the Permian Basin). Intrepid agreed to support XTO’s development of oil and natural gas within the vicinity of Intrepid’s Carlsbad operations. In exchange, XTO agreed to pay Intrepid $50 million upfront (fully paid in early 2024), $50 million when XTO receives regulatory approval for the next drilling island, and up to an additional $100 million based on the number of lateral feet that XTO drills.

Mike’s research suggests XTO is progressing on approvals for additional drilling islands. Intrepid also owns nearly 22,000 surface acres of land in Lea County, New Mexico. Several well-capitalized entities have aggressively purchased surface acreage in and around Lea County in recent years at prices north of $5,000/acre, suggesting this non-core acreage could be worth over $100 million.

Intrepid recently entered into a partnership with two firms to develop Intrepid’s lithium resource at the company’s solution mine in Wendover, Utah. Testing indicates that the resource meets key specifications for battery manufacturing and the project should benefit from the prior buildout of infrastructure at the site for legacy potash operations. Intrepid has stated its intention to limit its capital investment in the project.

Intrepid recently underwent a management change after Bob Jornayvaz (Intrepid’s co-founder and former CEO and Chairman) retired from the company after sustaining a serious injury. In December 2024, Kevin Crutchfield was named CEO and has focused on improving operations and avoiding expenditures outside of the company’s core business. In January 2025, Gonzalo Avendano was added to the Board of Directors. Mr. Avendano’s firm owns over 9% of Intrepid shares and his interests are well-aligned with investors. The change in leadership could also lead to shareholder returns, as Intrepid’s sizeable $77 million net cash balance sheet could be utilized to repurchase shares at attractive prices.

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About the instructor:

Michael Melby is the founder and portfolio manager of Gate City Capital Management, a micro-cap value focused investment firm. Before starting Gate City Capital, Michael worked as a research analyst at Crystal Rock Capital Management where he covered the consumer, restaurant, retail, and gaming sectors. Michael previously worked at Deutsche Bank Securities in their Debt Capital Markets group and at the University of Notre Dame Investment Office where he focused on natural resources, fixed income, and risk management. Michael earned an MBA from the University of Chicago Booth School of Business where he graduated with Honors and a BBA in Finance from the University of Notre Dame where he graduated Summa Cum Laude. Michael is a CFA Charterholder and has earned the Financial Risk Manager designation.

Gimat: The Turkish “Costco” With a Decades-Long Growth Runway

January 7, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Diary, Equities, Ideas

Monsoon Pabrai of Drew Investments presented her in-depth investment thesis on Gimat (Turkey: GMTAS) at Best Ideas 2026.

Thesis summary:

Gimat Gross (GMTAS) is an Ankara-based wholesaler-retailer operating a hybrid business model that combines a wholesale market, a modern consumer hypermarket, and a real estate-anchored ecosystem. Born from a cooperative of over 1,000 wholesalers in the early 1990s, Gimat functions similarly to a “Turkish Costco,” selling in bulk with low margins while owning its real estate assets. This structure provides a natural hedge against Turkey’s high inflation environment, protecting the company from rent escalation and supply chain disruptions. The company currently operates two locations, with the flagship store generating approximately $1,200 in sales per square foot and gross margins exceeding 20%. The shareholder base remains unique, with 99% free float and thousands of small holders, largely descendants of the original cooperative members, ensuring a culture focused on continuity and working capital efficiency rather than aggressive corporate expansion.

The company’s expansion strategy is conservative and disciplined, aiming to open one new store roughly every two years. Each unit requires approximately 1 billion lira to build and reaches maturity within 18 to 24 months. The second location, opened recently, reached profitability faster than anticipated. Long-term goals include consolidating presence in Ankara before expanding to other major Turkish provinces and potentially Germany, leveraging the large Turkish diaspora. While the company does not currently charge a membership fee—a key differentiator from the Costco model—management is exploring options such as paid parking passes to introduce a membership-like revenue stream. The focus remains on sustainable growth that does not compromise their thin net margins, which historically sit near 1-2% but are bolstered by asset appreciation and high inventory turnover.

Management is led by General Manager Recai Kesimal, who holds proxies for over 25% of the wholesaler base. Kesimal’s approach is characterized by a “service” mindset, prioritizing the stability and longevity of the enterprise over short-term shareholder value creation. This alignment ensures operational discipline and aversion to excessive leverage or risky scaling. While the lack of large institutional investors and the fragmented ownership structure might typically raise governance concerns, the deep communal ties and the management’s track record of capital preservation mitigate these risks. The leadership is actively studying Costco’s operational and cultural efficiencies to further optimize their low-cost model.

Gimat recently traded at a market capitalization of approximately $156 million, which Monsoon argues is slightly below its estimated intrinsic value of $175 million. This intrinsic value calculation aggregates the earnings power of the two existing stores—generating roughly $11 million in PAT, valued at a conservative 10x multiple—and the real estate value of the “Gimat Arena” development. The latter includes projected office sales of $50 million and retained commercial property yielding $1 million in annual rent, capitalized at 6.5%. Despite trailing P/E ratios appearing inflated due to Turkish inflation accounting, the underlying asset base and cash flow generation present a “heads I win, tails I don’t lose too much” scenario, offering a free option on future growth for patient capital.

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About the instructor:

Monsoon Pabrai is the Managing Partner and Portfolio Manager at Drew Investment Management, Inc., which manages funds modeled after Warren Buffett’s original partnerships. Previously, she worked as an Investment Analyst at Dalton Investments, focusing on Indian equities, and as Strategy Lead at Coral Labs, a Y-Combinator-backed robotics startup. She holds a B.A. in Political Science from UC Berkeley, with a concentration in International Relations. While Monsoon was a student, she interned at UCLA Investment Company in Los Angeles and New Horizon Investment Fund in Mumbai. Since 2010, Monsoon has regularly visited Dakshana Foundation programs across India, supporting underprivileged students preparing for the IIT entrance exams. Her travels have taken her to remote areas of Rajasthan, Karnataka, Kerala, and beyond. Monsoon currently serves as Dakshana’s Vice President. Monsoon spends her spare time playing Bollywood music and watching Bollywood movies. She plays tennis, jogs in Central Park, and loves to join her friends for early morning workouts via ClassPass in Manhattan.

GCI Liberty: Cash Cow Asset With Tax Shields and M&A Optionality

January 7, 2026 in Audio, Best Ideas 2026, Best Ideas 2026 Featured, Diary, Equities, Ideas

Chris Waller of Plural Investing presented his investment thesis on GCI Liberty (US: GLIBK) at Best Ideas 2026.

Thesis summary:

GCI Liberty is a classic “hidden gem” spin-off opportunity, offering investors the chance to partner with John Malone in his next serial acquisition vehicle at a modest entry price. The company’s core asset is Alaska’s dominant telecommunications provider, a utility-like business that generates persistent FCF. Roughly 70% of revenues are derived from broadband services, primarily delivered to mission-critical institutions like hospitals and schools and heavily subsidized by the Universal Service Fund (USF). Due to Alaska’s harsh geography and low population density, GCI enjoys a natural monopoly with high barriers to entry, evidenced by its 90% share of government funding in the region.

While headline concerns regarding satellite competition exist, Chris argues the risk from Starlink is manageable and often overstated. Detailed primary research indicates zero churn among Alaska’s 216 hospitals, which require the reliability, latency, and support of GCI’s fiber network—qualities current satellite offerings lack. Churn in the school segment is limited to remote districts without fiber access, a gap GCI is closing through funded infrastructure projects like the AIRRAQ fiber build. Consequently, the core cash flows remain protected, allowing the company to harvest cash from its capital-intensive legacy operations to fund higher-return opportunities elsewhere.

The primary upside driver is the transformation of the company into an “advantaged acquirer” leveraging three distinct strengths: tax efficiency, deal sourcing, and shareholder alignment. The spin-off structure created a ~$1bn tax basis step-up, which, combined with favorable depreciation rules under the “One Big Beautiful Bill,” effectively eliminates cash taxes for the next decade. Furthermore, the company benefits from the expertise of the Liberty Media management team to source deals, a rarity for a small-cap issuer. John Malone’s alignment is robust; holding 7% of the equity and over half the voting power, he has actively purchased shares and backstopped a $300m rights offering to bolster liquidity for M&A.

Management aims to replicate the Liberty Media playbook by leveraging the balance sheet to acquire cash-generative communications assets. Currently under-levered with ~$630m in net debt, the company targets a net debt/EBITDA ratio of 3.0x to 3.5x. Chris estimates this capacity, combined with internal cash generation, provides approximately $2bn in buying power. By acquiring businesses at roughly 5x EBITDA using a mix of debt and tax-shielded cash flows, the company can drive substantial accretion. The goal is to maximize FCF per share, potentially delivering 100-200% equity upside over a three-year horizon as the market re-rates the stock from a telecom multiple to that of a compounder.

The shares recently traded at $37, implying a $1.4bn market cap and a valuation of approximately 10x EV/FCF. This represents a discount to large-cap peers like Comcast and Charter, despite GCI possessing superior tax attributes and lower leverage. Chris posits that even without M&A, the downside is protected by the steady yield of the Alaska business, which trades at roughly 9x FCF on a standalone basis three years out. However, if management executes on the acquisition strategy, the stock could re-rate to 15x FCF or higher. The asymmetry is favorable: investors pay a value multiple for a protected cash cow with an embedded call option on a high-return capital allocation strategy led by a premier operator.

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About the instructor:

Chris Waller is the Founder and Portfolio Manager of Plural Investing, LLC. Plural Partners Fund was launched in 2020 with the belief that in-depth primary research can uncover ‘hidden gems’ in the small cap universe. The fund invests in 7-8 of these stocks over a 3-5 year time horizon. Some of our research is published in long form reports and available at the Hidden Gems Investing Substack. Prior to founding Plural, Chris worked in London at Goldman Sachs Asset Management. Chris joined in 2013 and worked as a member of the investment team for the Global and International Small Cap equity funds. He has an MBA from the Value Investing program at Columbia Business School and BA in Economics and Management from Oxford University. Chris lives in New York City.

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