We're going to have a setback in the margin trajectory this year. Part of that is because we had a above average last year. And then there's some other things compounding and scaring people like we've had this clockwork increase in margins. It's not just user growth, but also profitability. What is the competitive advantage or moat that Netflix has that maybe others don't?Yeah, well, it starts with their lead, right? You have the scale and they're in a position today where they can afford to provide more content value by having a big content budget at a lower price. That's really powerful for consumers.
Clay Finck chats with Tony Coniaris about the investment process and philosophies at Oakmark, Netflix as a value investment, Netflix stock valuation, and much more!
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
01:50 - Oakmark’s criteria for a quality value investment.
07:44 - What it means to have a bottoms up investment approach rather than a top down approach.
11:39 - Why Netflix qualifies as a value investment for Oakmark.
15:30 - Tony’s thoughts on the volatility of the stock’s price action.
18:13 - How Tony thinks about valuing Netflix.
30:20 - Tony’s thoughts on a recent addition to Oakmark’s holdings - Willis Towers Watson.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Help us reach new listeners by leaving us arating and reviewon Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!