Chit Chat Stocks 6 Future Share Cannibals; Ryan’s New Favorite Small-Cap; Mark Leonard Tribute (Constellation Software)
Sep 26, 2025
Discover the impact of the AI boom on markets and electricity consumption. Dive into the concept of future share cannibals and the criteria for selecting them, including growth potential and management strategies. Learn about intriguing candidates like Adobe, MGM, and D.R. Horton for their buyback policies. Celebrate Mark Leonard's legacy with Constellation Software and explore Yelp's surprising transformation. Plus, hear insights on the real estate market from Compass and audience questions about investing strategies.
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Nvidia-OpenAI Deal Raises Energy And ROI Questions
- Nvidia's investment into OpenAI resembles vendor financing that locks compute demand to Nvidia hardware.
- The scale of planned AI data centers raises serious questions about electricity supply and realistic ROI.
AI Growth Faces Real Electricity Constraints
- Adding 1–3% of U.S. electricity demand for AI over five years is an enormous infrastructural challenge.
- Building power capacity fast enough (nuclear, gas, solar) likely creates bottlenecks and social costs.
What Makes A Future Share Cannibal
- A share-cannibal is a company that persistently repurchases its own shares to boost per-share metrics.
- Key criteria are commitment to buybacks, business growth, high buyback yield, and rational capital-allocation management.