Preferred Shares Podcast

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Oct 2026

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Exploring the rabbit holes of business, history, and business history. www.preferredsharespodcast.com

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October 22, 20261 hr 8 min

James Davolos of Horizon Kinetics

Welcome to Episode 38 of the Preferred Shares Podcast. In this episode, we interview James Davolos, Portfolio Manager and Director of Research of Horizon Kinetics . James gives an overview of Horizon’s contrarian value approach, and we then discuss the broad topic of inflation. We then move onto the types of businesses James feels should benefit from a higher interest rate environment such which are in the portfolio of Horizon’s Inflation Beneficiaries ETF (INFL). Resource royalties, land, water, and financial exchanges are some of the major examples. The episode ends with James sharing some poignant advice for anyone interested in investing. We hope you enjoy. 02:05 Horizon Kinetics’ Contrarian Value Philosophy 03:07 James Devolos’ Background and Path to Horizon Kinetics 07:17 Lessons from Family Business and Risk Management 09:55 Structural vs. Cyclical Inflation Perspectives 11:21 Localized Inflation and Asset Scarcity 12:46 Interest Rates and the Fed’s Challenges 16:27 Investing for Absolute Performance in Inflation Beneficiaries 20:38 Portfolio Construction for Inflation Benefits 22:01 Asset Light Models and Royalty Business Advantages 24:06 Royalty Model vs. Operating Companies 26:24 Long-Term Scarcity and Optionality in Resources 28:18 Management Quality and Capital Discipline 34:01 Why Companies Sell Royalties 36:52 Aggregates and Water 39:48 Perpetual Futures and Exchange Risks 43:12 Emerging Opportunities in Inflation Beneficiaries 47:55 Nuclear Power and Uranium Investments 49:39 AI Bubble Risks and Long-Term Infrastructure Needs 54:13 Research Process and Idea Generation at Horizon Kinetics 56:40 Management Ownership and Incentives 01:00:04 Long-Term Thinking and Land Investment 01:01:29 Identifying Cyclical Troughs vs. Structural Impairment 01:03:24 Maintaining Continuity After Murray Stahl’s Passing 01:05:03 Advice for Investors and the Power of Listening Resources * Horizon Kinetics 4th Quarter Commentary 2025 , January 2026 * Worth the Time , Murray Stahl, February 2024 * Horizon Kinetics 1st Quarter Commentary 2023 , April 2023 * Horizon Kinetics 4th Quarter Commentary 2019 , January 2020 * How to Buy 1 Million Acres of Fine Texas Grazing Land for $20.00 , Contrarian Research Report, May 1995 Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 Rollins (ROL) Full Investment Report Lawrence Hamtil (Fortune Financial and @lhamtil ) * 📖 Industrial Staples Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 Haypp Group: Welcome to the Jungle Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on Twitter. Disclaimer All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

September 23, 202649 min

Corning in Today’s Data-Driven World

Welcome to Episode 37 of the Preferred Shares Podcast. This podcast is the second of two about Corning , an American business that has existed for 175 years. In this episode we interview William Kerwin , a senior equity analyst at Morningstar, about where Corning stands today and its current prospects for shareholders and investors. We hope you enjoy. * 01:25–03:39 — Intro & what Corning actually is (glass/tech/material science company spanning many end markets) * 03:39–09:07 — Revenue breakdown by segment and the AI-driven acceleration in fiber demand * 09:07–17:06 — Competitive moat: vertical integration, in-house equipment/IP reuse across decades, cost + technology leadership in fiber * 17:06–22:54 — China competition risk, pricing power, and Corning’s shift toward “solutions” for AI data centers * 22:54–32:50 — Customer co-location & co-investment model (Apple/Ceramic Shield, Amazon, Nvidia) and whether these deals de-risk growth or just pull it forward * 32:50–40:29 — Capital allocation (“3-4-5” framework), the photonics opportunity (~$10B by 2030), and CEO Wendell Weeks’ leadership * 40:29–48:53 — Other growth bets (solar), R&D spend vs. peers, lessons from 175 years of history, and surviving the Dot Com bust --------- At its May 2026 Investor Event, Corning updated its business plans. Specifically, the company thinks it can reach $20 billion of annualized sales by the end of its FY 2026 and then reach $40 billion of annualized sales by FY 2030. Corning estimates revenues from its Photonics and Enterprise segments will carry most of the growth, while all other businesses will provide a stable and base level of support. Below is one of Corning’s first hit products from the 1870s, a specialized durable signal glass for the railroad industry . --------- Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 Rollins (ROL) Full Investment Report Lawrence Hamtil (Fortune Financial and @lhamtil ) * 📖 Industrial Staples Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 Haypp Group: Welcome to the Jungle Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on Twitter. --------- Disclaimer All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

August 28, 202635 min

Corning: The Glass That Built America

Welcome to Episode 36 of the Preferred Shares Podcast. This podcast is the first of two about Corning , an American business that has existed for 175 years. We hope you enjoy. * Introduction and Company Origins (00:00 - 04:09) : The early history of Corning, founded in 1858 by Amory Houghton in Cambridge, Massachusetts, before eventually relocating to Corning, New York. * Early Innovations in Railroads and Light Bulbs (04:09 - 09:02) : The company pioneered durable ruby-colored railway signal lenses and later partnered with Thomas Edison in the 1920s to mass-produce light bulbs and secure its business against competitors. * Consumer Breakthroughs with Pyrex and Corningware (09:02 - 11:20) : Corning expanded into household consumer goods by introducing Pyrex heat-resistant glassware and accidentally discovering “pyroceram” (Corningware), a durable ceramic material later repurposed for missile nose cones. * The Television Era and Market Shifts (11:20 - 17:52) : Corning became the primary exclusive supplier of TV glass bulbs to companies like RCA, but ultimately exited the market in the 1960s. * Healthcare Expansion and Fiber Optics Breakthrough (17:52 - 20:12) : The company diversified into healthcare diagnostics by acquiring Metpath in 1982 (later spun off as Quest Diagnostics). Corning also laid the foundation for the information age when its scientists proved light could carry data through glass via fiber optics in 1970. * Gorilla Glass and the Modern Information Economy (20:12 - 22:37) : Prompted by Steve Jobs in 2007, Corning adapted its 1960s-era technology to create scratch-resistant Gorilla Glass touchscreen displays for the iPhone. * Key Strategic Takeaways and R&D Resilience (22:37 - 28:33) : A review of Corning’s corporate philosophy highlights the importance of sustained R&D investment through downturns, seizing opportunities when competitors stumbled, and looking beyond legacy products. * Conclusion and Upcoming Interview (34:01 - 35:01) : The hosts wrap up the history portion of the episode and announce a forthcoming part two featuring an interview with Will Kerwin from Morningstar to discuss Corning’s current financials and market prospects. Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 Rollins (ROL) Full Investment Report Lawrence Hamtil (Fortune Financial and @lhamtil ) * 📖 Industrial Staples Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 Haypp Group: Welcome to the Jungle Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on Twitter. Disclaimer All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

June 12, 202653 min

Duke Dynasty: The Legacy of the American Tobacco Monopoly, Part Two

Welcome to Episode 35 of the Preferred Shares Podcast. This podcast is the second and final part on our series on the American Tobacco Company and the founding Duke family. Part One covered the founding of the family tobacco business, and then the unbelievable hardships the family endured and overcame during and after the Civil War to re-start the business. We begin Part Two in 1890 with Buck Duke’s formation of the American Tobacco Company, which would become the dominant force in all the major forms of tobacco in the United States. We hope you enjoy. * The Antitrust Act and Market Dynamics * Antitrust Action Against American Tobacco Company * The Supreme Court’s Ruling on ATC * The Breakup of American Tobacco Company * Buck Duke’s Legacy and Diversification * The Impact of the Duke Endowment * Counterfactuals and the Future of Tobacco * Should We Celebrate Buck Duke? Images, Tables and Charts American Tobacco’s Losses on Plug Tobacco (1894-1898) ATC lost a cumulative $4 million on plug tobacco from 1894-1898. Robust profits from its cigarette business supported these losses. Billions of Cigarettes Sold in the U.S. (1890-1949) For a long time, cigarettes were insignificant compared to plug and chewing tobacco and cigars. However, with ATC’s unrelenting emphasis on scale and efficiency, the cigarette category grew rapidly. From 1910 to 1921, total industry cigarette volumes increased 5x. From 1910 to 1949, volumes increased 35x. Per Capita Consumption in Pounds of Various Tobacco Products (1904-1953) Cigarettes were a minor part of all tobacco products for several generations. It wasn’t until the 1920s that cigarettes overtook chewing tobacco, smoking tobacco, and cigars, on a per capita basis in the United States. Profitability of American Tobacco Company (1890-1908) ATC was tremendously profitable at its inception. However, profitability declined from 1890 to 1909 for two reasons. The first is ATC’s battles during the plug tobacco war from 1894-1898. Second, profitability declined as ATC consolidated and invested in other less profitable tobacco categories. Despite the profitability decline during the 1890s, ATC still managed to earn an average of 32.7% on tangible assets and an average profit of 20.6% on net sales from 1890-1909. Taxes and Dividends Paid by the American Tobacco Company (1904-1953) ATC paid a steadily growing amount of state and federal taxes. The dividends it paid to shareholders from 1910-1953 remained unchanged as it continually reinvested in its business. Statue of James Buchanan at Duke University Sources Books * Farley, Jennifer Dawn. Duke Homestead and the American Tobacco Company, Arcadia Publishing, August 26, 2013. * American Tobacco Company. Sold American!: The First 50 Years of the American Tobacco Company , 1954. * Tennant, Richard B. The American Cigarette Industry , 1950. * Jenkins, John Wilber. James B. Duke, Master Builder , 1927. Other * The Duke Endowment Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 Haypp Group: Engine for the New Environment Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 Ingredion: A Low-Multiple, High Value-Added Business Near Inflection * 📖 Think! or Surrender!! - The Life and Wisdom of H. O. Hirt, co-founder of Erie Indemnity Lawrence Hamtil (Fortune Financial and @lhamtil ) * 🎤 “How Tobacco Became One of The Greatest Investments in History” , Odd Lots Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on Twitter. Disclaimer All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

May 25, 202655 min

Duke Dynasty: The Legacy of the American Tobacco Monopoly

Welcome to Episode 34 of the Preferred Shares Podcast. This episode (Part One of Two) explores the remarkable history of the Duke family and the rise of the American tobacco industry, focusing on innovation, resilience, and strategic business decisions that transformed a local operation into a global powerhouse. Explore the fascinating history of the American Tobacco Company, its dominance, legal battles, insights into antitrust laws, industry strategies, the impact on society, and the legacy of Buck Duke. In This Episode * The Duke Family Legacy Begins * Washington Duke’s Early Life and Challenges * The Birth of Brightleaf Tobacco * The Civil War’s Impact on the Duke Family * Rebuilding After the War * Transportation’s Role in Business Expansion * Education and Family Dynamics * Transition to Large Scale Operations * Buck Duke Takes Charge * Pivoting to Cigarettes * The Bonsack Machine Revolution * Innovations in Packaging and Cost Reduction * Marketing Strategies and Global Expansion * The Formation of the American Tobacco Company Charts and Images Sources Books * Farley, Jennifer Dawn. Duke Homestead and the American Tobacco Company, Arcadia Publishing, August 26, 2013 * American Tobacco Company, Sold American!: The First 50 Years of the American Tobacco Company , 1954 * Tennant, Richard B., The American Cigarette Industry , 1950 * Jenkins, John Wilber, James B. Duke, Master Builder , 1927 Other * The Duke Endowment * U.S. patent 238,640 granted March 8, 1881 * U.S. patent 247,795 granted October 4, 1881 Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 Think! or Surrender!! Lawrence Hamtil (Fortune Financial and @lhamtil ) * 🎤 “How Tobacco Became One of The Greatest Investments in History” , Odd Lots Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 Haypp Group: Engine for the New Environment Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on Twitter. Disclaimer All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. At the time of publishing, clients of Andvari owned shares of Norfolk Southern. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. keywords Duke family, tobacco industry, innovation, business history, manufacturing, branding, cigarette machine, Bonsack machine, market strategy American Tobacco Company, Buck Duke, antitrust, monopoly, tobacco industry, Standard Oil, market share, mergers, regulation, history key topics The origins of the Duke family and their farm in North Carolina The development of Brightleaf tobacco and its regional dominance The invention and impact of the Bonsack cigarette machine Strategic moves in pricing, marketing, and branding The transition from local to global markets and the rise of cigarette consumption Buck Duke’s business strategy and industry dominance Legal battles and antitrust lawsuits against ATC Industry consolidation and market share evolution Titles The Duke Family’s Tobacco Empire: From Humble Beginnings to Global Domination How Innovation and Strategy Built the American Tobacco Industry This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

April 28, 202654 min

Class 1 Railroads with Matt Reustle of Business Breakdowns

Welcome to Episode 33 of the Preferred Shares Podcast. In this episode, we talk in depth about North American’s Class 1 Railroads and the pending merger between Union Pacific and Norfolk Southern . Joining the conversation is Matt Reustle, a former analyst with Goldman Sachs covering the transportation sector. More recently, Matt has been the long-time host of the great Business Breakdowns podcast . In This Episode Defining Class 1 Rails Key dynamics of the industry The formation of the ICC and historic regulation, including the Staggers Act E. Hunter Harrison and the rise of Precision Scheduled Railroading (PSR) The ICC’s last big decision: the BN and SF merger Key industry metrics and historical performance Exploring the potential likelihood and impact of the proposed UNP NSC merger Disclaimer All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. At the time of publishing, clients of Andvari owned shares of Norfolk Southern. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

April 16, 202645 min

The Ferguson Water Thesis with Todd Wenning

Welcome to Episode 32 of the Preferred Shares Podcast. In this episode, we explore the water thesis behind Ferguson Enterprises , a leading distributor of HVAC and plumbing solutions. To help walk us through the intricacies of the thesis, we are joined by Todd Wenning. Todd is a prior contributor at The Motley Fool, previously covered companies on the sell-side for Morningstar and the buy-side for Johnson Investment Counsel and Ensemble Capital Management. He’s a busy guy! He runs KNA Capital Management, LLC , an Ohio-registered investment advisor, and is the founder and editor of the newsletter Flyover Stocks . He is also currently teaching Portfolio Management at the University of Dayton. In This Episode The history of Ferguson — Its founding and early focus. The water thesis — Why now is the right time. The distributor model — How Ferguson’s position in the value chain makes it a prime beneficiary of the water thesis. Full scope — The expansive SKU listings, inventory management, and diversified suppliers and customer bases that work with Ferguson. The market — A look at market share and how competition has evolved. Capital Allocation — How Ferguson redeploys capital across organic investments, bolt-on acquisitions, and capital returns to shareholders. Reciprocity — How the HVAC and water sides of the business assist one another, creating a system greater than the sum of its parts. Management — Exploring compensation, alignment, and horizon. Risks — What could go wrong. Closing Thoughts — The key things to focus on, and, taking the other side to the risks, what could go ‘more right.’ Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 Remembering Marlboro Friday * 📖 Tyler Technologies Investment Report Lawrence Hamtil ( Fortune Financial and @lhamtil ) * 📖 The Traits of an Ideal Industry Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 Edgar M. Cullman’s Brilliance * 📖 Edgar M. Cullman’s Brilliance, Part Two Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on Twitter. Disclaimer All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

March 20, 20261 hr 5 min

Veteran Analyst Mark Purdy on Nestlé

Welcome to Episode 31 of the Preferred Shares Podcast. In this episode, we continue our short series on Nestlé. We brought back our guest Mark Purdy ( whom we interviewed about Lindt & Sprüngli ) to chat about the company’s more recent history and its current set of challenges and opportunities. Mark is a veteran investment analyst with 40 years of experience with a particular focus on consumer brands. He’s now retired from full-time research and portfolio management, and he has set up Calabria Park Advisors, a boutique consultancy. In This Episode * Setting the Stage: Consumer Staples Under Pressure — Mark frames the last six years for the sector, covering the COVID distortion between in-home and out-of-home consumption, and the wave of inflation that followed. * Nestle’s Perfect Storm: Cocoa & Coffee Costs — Commodity prices hit Nestlé especially hard, with cocoa at one point nearly 5x its pre-spike level, squeezing margins. * CEO Carousel: Three Leaders in 18 Months — The show examines the transition from Paul Bulcke to Mark Schneider to Laurent Freixe and now Philippe Navratil, and how leadership instability can create internal distraction even at a resilient company. * The Case for Insider CEOs in Consumer Staples — Mark argues that the long-cycle nature of brand stewardship favors internal promotions, and why Navratil’s 20-year tenure and track record make him a credible candidate. * Brand Portfolio Sprawl — A discussion of how consumer goods giants naturally accumulate thousands of brands despite every CEO promising “fewer, bigger, better,” and what Nestlé should actually do about it. * M&A Winners and Losers: Ralston Purina vs. Health Science — Mark contrasts Nestlé’s successful acquisitions (Purina, the Starbucks licensing deal) against its costly failures in vitamins, wellness, and Jenny Craig, and explains why working capital mismatches can doom category expansions. * The KitKat Exception and Confectionery Regrets — Despite owning iconic Rowntree’s brands, Nestlé largely squandered its confectionery position — with KitKat the lone standout — while watching Lindt thrive on its doorstep. * Capital Allocation Priorities: Dividends, Debt, and RIG — Mark digs into Nestlé’s current financial constraints, a stretched ~70% dividend payout ratio, rising net debt, and why CEO Navratil’s new focus on Real Internal Growth (RIG) — a metric Nestlé itself invented — is the only viable path forward. * The L’Oreal Stake: Financial Asset or Get-Out-of-Jail Card? — Mark walks through the 50-year history of Nestlé’s ~20% stake in L’Oreal and the logic (and politics) of gradually selling it down. * Closing Advice to the Board — Mark’s prescription: Nestlé must recognize its genuine strengths (emerging market reach, scale, R&D); stop chasing growth through ill-fitting acquisitions; and be patient . A steady 3% real sales growth rate has historically been more than enough to create a very attractive shareholder return. [Charts and Pictures] The two charts below show the total increase decrease of Nestlé’s seven product categories over the last ten years. The two growth categories have been Powdered and Liquid Beverages and PetCare, while the others have been down or flat. The result has been total sales not increasing by much for Nestlé over the prior decade. Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: * Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 An AI Skeptic’s Primer * 📖 Tyler Technologies Investment Report * Lawrence Hamtil ( Fortune Financial and @lhamtil ) * 📖 The Traits of an Ideal Industry * Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 Edgar M. Cullman’s Brilliance * 📖 Edgar M. Cullman’s Brilliance, Part Two Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on Twitter. Disclaimer All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

February 17, 202654 min

Nestlé: The Building of a Global Behemoth

Welcome to Episode 30 of the Preferred Shares Podcast. In this episode, we discussed the history and founding of Nestlé. * Origins of the company in 1867 * The strategic 1905 merger with Anglo-Swiss Condensed Milk Company * Nestlé’s exceptional resilience and growing scale * Nestlé’s global dominance in the coffee market * The success of its Maggi brand * The organic and inorganic growth behind its Health Science and Medical Nutrition segment Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: * Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 An AI Skeptic’s Primer * 📖 Tyler Technologies Investment Report * Lawrence Hamtil ( Fortune Financial and @lhamtil ) * 📖 The Traits of an Ideal Industry * Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 Edgar M. Cullman’s Brilliance * 📖 Edgar M. Cullman’s Brilliance, Part Two Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on X. Disclaimer All opinions expressed by Preferred Shares Hosts and guests are solely their own opinions and do not reflect the opinions of their current or former employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari Associates and Fortune Financial may maintain positions in the securities discussed in this podcast. As of the date of this podcast, Andvari and Fortune Financial clients owned shares of Nestle. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com

January 8, 202659 min

Forging a Family-Owned Legacy: The Story of Thompson Traders

Welcome to Episode 29 of the Preferred Shares Podcast. In this episode, we interviewed Clifford Thompson of Thompson Traders, a family-owned business founded in 2002. Since then, Thompson Traders has carved out a niche in the high-end home fixture market with a focus on luxury copper and brass sinks, range hoods, innovative designs, and strong customer relationships. We discussed a variety of topics: * Cliff shares his journey in founding Thompson Traders; * The importance of cash flow in small businesses; * Thompson Traders evolving from importing to designing their own products; * The intricacies of product design; * The impact material choices have on customer preferences and product durability; * How customer relationships are key to business success; * How Thompson Traders has navigated a competitive marketplace; and * The WSJ article in which Thompson Traders was featured and how tariffs have impacted small businesses like Thompson. To see Thompson Trader’s products in all their glory, please take a look at their most recent “Look Books” for 2025: Thompson Traders Photos Additional Reading & Listening Curious to see what else we’ve been working on? Check out some of the interesting things we’ve done recently: * Douglas Ott ( Andvari Associates and @yesandnotyes ) * 📖 Cranberries & Ocean Spray: Part I * 📖 Constellation Software: A People Business * Devin LaSarre ( Invariant and @DevinLaSarre ) * 📖 2026 Nicotine Basket Snapshot * Lawrence Hamtil ( Fortune Financial and @lhamtil ) * 📖 Aerospace: After A Century of Growth; A Bright Future Ahead Enjoy this episode? Share it with someone who loves business history as much as you do! You can also follow Preferred Shares , Devin , Doug , and Lawrence on X. Disclaimer All opinions expressed by Preferred Shares Hosts and guests are solely their own opinions and do not reflect the opinions of their current or former employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Clients of Andvari Associates and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.preferredsharespodcast.com