I bought some LSXMK today, and have bought higher too, around 25/26.

This is a somewhat sticky product, low churn, and has consistent cash flows, not all that growing to be fair.

Definitely the older, wealthier cohort is the target subscriber. Kids today, yes, I agree they’re on Spotify mostly.

Management is long tenured and they seem to have been able to maintain and ever so slightly grow the subscriber base and like I said before churn is less than 2%.

On a recent conference call the CEO reiterated guidance for the year (said this a couple of weeks ago), trading at a very low valuation, decent yield here 4%+.

They have been out of the market on the repurchase side due to the reorganization, but when they get back to repurchasing they usually buy a healthy amount. Last five years FCF is around 1.5B per year, flattish, on a MKT cap of 10B, that is pretty good firepower for repurchases, which I think is the Ted W playbook.

Berkshire Hathaway FAQ

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