The Intrinsic Value Podcast - The Investor’s Podcast Network

UMG as a Durable, Diversified Music Empire

"It's almost as good as it gets. And when I first looked at Universal, I saw a clearly high-quality, IP-rich business trading at what I thought was a very reasonable price, right around 20 times earnings."

The speakers provide company-specific commentary on UMG, emphasizing its structural advantages, vast and star-studded music catalog, and diversified revenue streams that span recorded music, publishing, and merchandising. They note that UMG has demonstrated resilience and steady growth as streaming becomes the primary revenue driver, making it an attractive long-term investment in a competitive industry.

Initiate/Increase Position in Berkshire Hathaway (BRK.B) as a Defensive, Diversified Cash Alternative

-0.19%current return

"I believe adding Berkshire, similar to what Norbert Liu is doing or has been doing, is pretty much a no-brainer. Starting at 10% seems reasonable, and if the market dips further, increasing the allocation to 15% could be a good move. This not only provides exposure to a well-diversified conglomerate with a robust cash position but also acts as a hedge that functions almost like a flexible form of cash."

The hosts outline a trade call for Berkshire Hathaway (BRK.B), suggesting that investors allocate approximately 10% of their portfolio to BRK.B as a defensive position. They highlight Berkshire's diversified earnings, its role as a cash equivalent (given its nearly $350 billion in cash holdings), and its potential to serve as a stable, lower-volatility placeholder in a portfolio. They also mention the possibility of increasing the allocation to 15% if market conditions worsen, thereby offering a tactical hedging opportunity alongside its long-term value characteristics.

Avoid Early Investment in MTCH Until Tinder Stabilizes

+13.62%current return

"I have very little confidence in their game plan going forward and I don't think it's appropriate to recommend the company at the moment. Maybe by next year, if we see signs of Tinder stabilizing, the stock will definitely jump."

The analysts highlight that despite Match Group (MTCH) trading at attractive valuation multiples (with a current forward free cash flow yield of around 10% and low multiples relative to historical highs), significant risks persist due to the ongoing decline in Tinder's paid user base. They caution investors to avoid buying MTCH at current levels and instead wait for clear signs of a turnaround in Tinder's performance before considering an investment. This caution is reinforced by the potential for a 15% annual return if a turnaround materializes, suggesting that premature entry could expose investors to unnecessary risk.

Avoid Adding Dell (DELL) at Current Price Levels

-27.09%current return

"My model shows that at a moderate growth rate of 8% and with a multiple between 12 to 13, Dell would have a fair value of around $120. Given that Dell is currently trading in the high $120s, I’m not recommending adding it to the intrinsic value portfolio."

Based on detailed revenue growth and margin assessments, the hosts conclude that Dell (DELL) is trading near its fair value. With a fair value target of about $120 and current prices in the high $120s, coupled with concerns over slim margins in the hardware and AI server segments, the actionable recommendation is to avoid initiating a new position in Dell.