Nelnet (NYSE: NNI — $3.20b) recently reported earnings so let’s dive in. Some of the largest revenue growth areas were the loan, investment, and bond interest. “While Nelnet’s earnings are affected by the anticipated runoff of our legacy student loan portfolio, we continue to be pleased with the growth opportunities in our core fee-based businesses”

The Home Depot (NYSE: HD — $281.9b) is changing a core part of its business. Home Depot can categorize the major of its business into two columns, the consumer business and the pro business. Currently, the consumer business accounts for a larger portion of revenue, however, in the companies TAM and revenue projections they forsee pro becoming a larger part of their business.

Earlier this fall I wrote about some exciting developments at SkyHarbour Group (NYSE: SKYH — $287.59m) related to new ground leases and future developments in the works. For background SkyHarbour private aircraft storage REIT. They own and operate campuses around the country for main corporate jets, however, there are also This is a key part of the next level of growth for the company. The company just announced that one of the next development locations in Chicago. They were not joking when they said they had a some high value Tier 1 prospects.

When I attended my first Boston Omaha annual meeting in November 2021 it was quite intimate which allowed for a deeper dive into what we as investors wanted to learn more about. The questions were on point, but I remember one that stuck out from the rest, it was something like, “I have a great appreciation for your strategy and operational ability, but it pisses me off when you do a private fundraising round at a below-market valuation…” It was less of a question and more of a critique, but in light of the recent (at the time) discounted cash influx it seemed like an important issue to address. The response by the Co-CEOs basically said that their main priority was optionality. They didn’t want to feel that at any moment they couldn’t quickly and effectively capitalize on an attractive opportunity. This notion led them to raise capital they thought was necessary. While I do not condone that form of fundraising always it can make sense especially when you are a smaller enterprise competing against some big players. For example, their billboard subsidiary, Link Media, is the 6th largest in the US.

When it comes to capital allocation there are a lot of important names that fly under the radar of the masses. Today I want to get into John Elkann’s conglomerate Exor. The company owns Ferrari, Juventus Football Club, and much more. I’m a big fan of Bernard Arnault and what he as created with LVMH Group and there seem to be many similarities here (although there are some different industries). John Elkann and Exor Group may follow in the respective footsteps.

TL/DR: New Tool! Boston Omaha Earnings SkyHarbour Earnings Watchlist & Portfolio Updates Hi all, I am very excited to announce a new tool I built will be launching tomorrow! I am very excited to see what you all think and I will be incorporating it into the newsletters (especially the deep dives). I know it will be a great value add. Look out for tomorrow’s special edition newsletter to find out what it is and how to use it! Subscribe if you haven’t already to get first access:

Nelnet (NASDAQ: NNI) similar to Hingham (NASDAQ: HIFS) is a conservatively and cleverly managed business. They are both led by high quality capital allocators and this means they don’t try to bend the numbers. Instead they will take the hit head on and immediately to mitigate long term financial affects. This also means they can more quickly move passed the “damage” and not suffer from it longer than necessary. That isn’t shown directly in income statements and balance sheets, but it speaks volumes about the managers.

Facts: +17% Revenue year/year to ~$46.57bn +13% Profit from Recurring Operations year/year to ~$12.8bn Comments: Watchlist Updates: Portfolio Updates: To access the full spreadsheet and its linked deep dive go here. Until Sunday, Soren

Investment Thesis CAVA is a stock that will be added to my watchlist because while I’m not sure it will be quite as exciting as Chipotle 20 years ago it still seems like a strong growth opportunity. The currently high valuation and low margins make it a more difficult investment to justify. However, the demand and potential for expansion as well as the execution of expansion seems to be working well. I will be curious to see how they can become profitable and move from a growth model to a more sustainable long-term model as the company gets to scale.