your write up on comp BV basis is amazing. i am still wrapping my head around why FRMO is tradign so cheaply. it did nto even beat the sp500 in last 20 years, while equity increased many folds. why market is not able to comprehend the overall underlying fundamental power of the company? is it that they want to only own hard assets while BKR owned brands and quality long term compounders? ... idk how to compare stahl with buffet.
Here's something to consider... IDK that FRMO holders see the company as much beyond the Stahl & Bregman show.
The *main* moat of FRMO, IMO, is S&B and IDK how the co would transition to a post-Stahl world and still come out better than before.
Their "intellectual capital" is a kind of unique or irreplaceable asset, but that's also it's weakness in that there's nothing inherently special about FRMO's biz model in itself (and, unlike BRK, they own mostly public companies (whereas BRK has GEICO, BNSF, BRK Energy, etc.), so you can get pretty/very similar exposures without paying a P/B premium for FRMO shares by just holding TPL + IBIT (could even add WELX and MIAX when it IPOs, but they are such small holdings that it really wouldn't matter).
To that end, you might even be better served by just owning HKHC (where you get the exposure to the same main/driving investments as well as the fee income from the AUM invested across the HK complex of funds).
Stahl *claims* they're doing things very different at WELX vs other miners, but I guess we'd only know how moaty those differences are once they own 51% and starts disclosing more about their processes, which he says they plan to do (though I really can't imagine it's anything comps couldn't replicate if it really made a difference).
your write up on comp BV basis is amazing. i am still wrapping my head around why FRMO is tradign so cheaply. it did nto even beat the sp500 in last 20 years, while equity increased many folds. why market is not able to comprehend the overall underlying fundamental power of the company? is it that they want to only own hard assets while BKR owned brands and quality long term compounders? ... idk how to compare stahl with buffet.
Here's something to consider... IDK that FRMO holders see the company as much beyond the Stahl & Bregman show.
The *main* moat of FRMO, IMO, is S&B and IDK how the co would transition to a post-Stahl world and still come out better than before.
Their "intellectual capital" is a kind of unique or irreplaceable asset, but that's also it's weakness in that there's nothing inherently special about FRMO's biz model in itself (and, unlike BRK, they own mostly public companies (whereas BRK has GEICO, BNSF, BRK Energy, etc.), so you can get pretty/very similar exposures without paying a P/B premium for FRMO shares by just holding TPL + IBIT (could even add WELX and MIAX when it IPOs, but they are such small holdings that it really wouldn't matter).
To that end, you might even be better served by just owning HKHC (where you get the exposure to the same main/driving investments as well as the fee income from the AUM invested across the HK complex of funds).
Stahl *claims* they're doing things very different at WELX vs other miners, but I guess we'd only know how moaty those differences are once they own 51% and starts disclosing more about their processes, which he says they plan to do (though I really can't imagine it's anything comps couldn't replicate if it really made a difference).