Episode 358 - I Just Spent $5,000 On This Undervalued Stock

Investing in Canadian Pacific

Canadian Pacific is a monopolistic Class I railroad with significant cost advantages over other forms of transportation. The company is expected to see double-digit earnings per share growth and high single-digit revenue growth through 2028. With a flat cap-ex projection, Canadian Pacific aims to double its earnings per share and achieve nearly 20% annualized free cash flow per share growth over the next five years. Despite its higher leverage, the company's potential and undervalued stock make it an attractive investment.

Drama at OpenAI

OpenAI made headlines when its CEO, Sam Altman, was unexpectedly fired by the board. Altman, who played a crucial role in OpenAI's growth and success, was fired over unsubstantiated allegations. This led to an outcry from OpenAI employees, who signed an open letter calling for the board's resignation. In a surprising turn of events, Altman and his team will be joining Microsoft, where they will lead a new specialized AI research team. The move is seen as a positive outcome for Microsoft and presents a potential setback for OpenAI.

Success of the Vegas Formula One Race

Despite a rough start with a delayed practice race, the Formula One race in Las Vegas turned out to be a huge success. The event was action-packed and filled with exciting moments, leading many to declare it the best race of the year. This positive reception bodes well for Vichy, a real estate company that owns properties on the Vegas Strip. The race showcased the city and drew attention, which could have a positive impact on Vichy's investment as it relies on profitable tenants and a diverse entertainment offering in Vegas.

Satya Nadella's Leadership at Microsoft

The recent developments at OpenAI highlight the importance of strong leadership in companies. Microsoft CEO Satya Nadella's genuine and skilled approach to leadership has been praised. His ability to handle difficult situations and negotiate positive outcomes has been evident. This, coupled with Microsoft's vast resources, positions the company favorably for the future. While Microsoft may not have the deepest valuation currently, the presence of Nadella as CEO and the company's winning hand make it an appealing investment.

The Joseph Carlson Show

Episode 358 - I Just Spent $5,000 On This Undervalued Stock

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Investing in Canadian Pacific

Drama at OpenAI

Success of the Vegas Formula One Race

Satya Nadella's Leadership at Microsoft

Remember Everything You Learn from Podcasts