Analyzing Nellnet: A Unique Operational Approach

In this episode of Chit Chat Stocks, Ryan Henderson and Brett Schafer discuss Nelnet, a small-cap conglomerate based in Nebraska. They compare Nelnet to Berkshire Hathaway and delve into the different segments of Nelnet's business, including Nelnet Business Services, Nelnet Diversified Services (Loan Servicing), NFS (Nelnet Financial Services), and the Solar Business. They provide insights into the performance, challenges, and potential value of each segment. The conversation covers the valuation of Nelnet's solar business, the discussion on the cable business, an overview of Allo Communications, analysis of the venture capital portfolio, valuing the Hudl investment, estimating the value of Nelnet, considerations on book value and stock buybacks, and a comparison to Berkshire Hathaway. They discuss:

(00:00) Introduction and Comparison to Berkshire Hathaway

(04:28) Nelnet Business Services

(11:46) Nelnet Diversified Services, Loan Servicing

(41:24) Solar Business

(45:09) Valuing the Solar Business

(46:44) Discussion on the Cable Business

(49:12) Overview of Allo Communications

(53:32) Analysis of the Venture Capital Portfolio

(57:30) Valuing the Huddle Investment

(01:00:28) Potential Worth of Nelnet

(01:04:30) Estimating the Value of Nelnet

(01:09:21) Considerations on Book Value and Stock Buybacks

(01:12:46) Comparison to Berkshire Hathaway

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Disclosure: Chit Chat Stocks hosts and guests are not financial advisors, and nothing they say on this show is formal advice or a recommendation.