[PODCAST] 3 Stocks I am Buying More of in 2025
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This week on the podcast we performed a portfolio shakedown. Ryan compiled his stock holdings (using our friends at Finchat.io!) and I peppered him with questions for 30 minutes. Then, we switched seats and did the same for me.
Below is my portfolio allocation as of the podcast recording on January 13th. You might think my cash position is high, but these are all my emergency funds, high-yield savings, and other cash/equivalents that I own. It helps me balance the metaphorical barbell (maybe only psychologically) and not be afraid to invest aggressively.
This isn’t cash sitting in my brokerage account. When I deposit money, I invest it. Market timing is not the goal.
As of this recording, my personal assets were:
35.9% cash/equivalents
22.8% Nelnet
8.6% Remitly
6.4% Portillo’s
6.3% Coupang
5.8% Nintendo
4.5% Philip Morris International
4.4% GoGo
3.4% Bolsa Mexicana De Valores
1.9% Grupo Aeropuertario del Centro Norte (OMAB)
~0% in Harbor Diversified (stock not tradeable at the moment, so I am just waiting out the situation until it resolves)
I own 10 stocks. Concentration is not something I am worried about. In fact, I worry a lot more about diworsification. Should I really buy this new stock when I can just put more money into my best idea at the moment?
My personal financial situation allows me to invest with a perpetual time horizon. I want to use this to my advantage. Volatility is not a concern. Withdrawals are not a concern. Maximizing returns over the long term is the sole goal.
I see a few stocks (Alsea Group probably #1) that I may add to the portfolio this year.
Most of my buying to start 2025 will be in stocks I already own. The three I find most attractive right now are:
Nelnet
Philip Morris International
OMAB
Nelnet is a diversified holding company I believe is the next Berkshire Hathaway (although management would never tell you this). It is trading at around book value with understated asset value and an asset-light software business gushing cash flow. It has gone through a rough patch with the interest rate cycle but is back on solid footing and likely worth $6 billion - $7 billion compared to its current market cap of $3.9 billion.
We plan on giving an update on the company in detail when the annual letter is released later this winter. I am not afraid to make this an outsized position in the portfolio.
Two years ago, we did a deep dive into Nelnet. Not much has changed since:
Philip Morris International is the leading global nicotine company (owner of cigarette brands, Zyn, and IQOS). After a drawdown in late 2024, the stock now has a market cap of $184 billion and a great debt stack.
I see a path to $20 billion in operating income within the next five years. Most of these earnings will be returned to shareholders through dividends and share repurchases. I think it will be exceedingly difficult for buy-and-hold investors to lose money owning Philip Morris International stock over a 10-year period.
OMAB is the airport operator for cities in North Mexico, the pacific coast, and the U.S. border. Its most important airport is Monterrey with around half of its traffic. The reshoring boom will make Mexico richer. The reshoring boom is centered around Monterrey. As people get richer, they fly more. Traffic to Monterrey will grow, which directly translates to more revenue for OMAB.
It currently trades at 10x earnings and likely 5x earnings in five years if the Mexican economic boom continues. There is more to the story, which I plan on covering in detail in my upcoming stock research episode.
The stock is less than 2% of my personal assets, but I am comfortable making it a full position at around ~5% at cost. Management has a fantastic track record of good relations with all its stakeholders and there is a clear path to steady traffic, revenue, and earnings growth.
Give the episode a listen to find out what Ryan holds in his portfolio!
-Brett
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