Deep Dive: Aaron Edelheit Discusses Nelnet Stock (Ticker: NNI)
Aaron joined the show again to talk about one of his favorite companies: Nelnet. He has written about the small conglomerate on his substack/blog, which you can find here. Here are some questions we asked him on the show:
Can you explain the important parts of Nelnet’s business? And maybe a little history as to how they got into this position
Why do you like it as an investment?
How do you go about valuing a business like this?
Where would you like to see Nelnet deploy the majority of its cash moving forward?
Thoughts on management/capital allocation strategy. Would it impact your outlook if Dunlap left?
What specific metrics (financials/other) are you following to evaluate whether Nelnet’s business is executing well?
Why do you think the market seems to overlook Nelnet? Any big catalysts coming?
Specific thoughts on Hudl? What makes it such a hidden gem in this portfolio?
If you were writing a pre-mortem for this investment today, why would it fail?
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Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.