Marc Langefeld

Private investor focused on investing for the long-term in the best consumer and technology stocks

[Marc Langefeld @marcvalueinvest]

@brettgardner_10 Brett, does the chapter on Ted provide details on how he grew his IRA or only on his time at BH? Thanks!

[Marc Langefeld @marcvalueinvest]

@WilliamGreen72 @robvinall Please ask Rob to discuss his recent views on $META , $MSFT and Tencent. Thanks William!

[Marc Langefeld @marcvalueinvest]

@nyknicks JB

[Marc Langefeld @marcvalueinvest]

@biggercapital Congratulations Michael! Very impressive!

[Marc Langefeld @marcvalueinvest]

@TechFundies Why do you think it has been so hard for majority of active tech managers to beat the QQQ long term?

[Marc Langefeld @marcvalueinvest]

@Divergent7651 @SmallCapVal I would love that too. DC, can you please share your OID archive with me. I would appreciate it.

[Marc Langefeld @marcvalueinvest]

I recently watched this great $NFLX update video (titled Netflix Update: Losing its Grip or Pulling Away) by @drewcohenmoney. I really enjoyed hearing Drew’s thoughts on the potential Netflix has to grow its advertising business. Below are a few quotes (some of which are paraphrased) that I found particularly insightful:

"Netflix’s ad tech stack is going to be the biggest thing Netflix can work on to improve monetization over time. What I think is going to happen is that as they continue to improve their ad stack and they're able to get more advertisers onto the platform, they will be able to fill more of the ad slots because one of the problems right now is they have an estimated 4,000 advertisers. But a lot of the ad slots, the times that they would show an ad to a user, the ad inventory is not there. There's no one paying for an ad. And because of that, an ad's not being shown. And so it's basically being undermonetized as an ad platform. And I think what's going to happen over time is Netflix will get those ad fill rates up and get more advertisers advertising on the platform."

"Netflix might be able to reduce the price of its ad supported plan over time or create different ad supported tiers, which would allow more people to subscribe to the service at a lower price point. If Netflix dropped the ad tier price point from $8.99 to $2.99 or maybe even made it free, you would get a lot more subscribers onto the platform because it's free. I think that eventually what's going to happen is they might have a totally free version, a free tier of Netflix and that's going to be entirely ad supported the same way YouTube works today. I think that they can't do that yet until the ad stack gets a lot better that they can actually make up for that revenue shortfall. If they're able to do that, the market opens up a lot more. Netflix will get a lot more viewing time. And that's why I think the advertising initiatives are by far the most important in terms of revenue monetization because the ability for people to pay is going to be somewhat tapped at some point and Netflix can't continue to increase pricing at the high end. And yes, I think they do still have more pricing power today."

"Netflix talked about doing like $3 billion in ad revenue for this year. Compare that to its total expected revenue of $47 billion. So it is a very small portion of their overall revenue base. I don't see why advertising couldn't be the majority of revenues. Most of the world would probably prefer to pay with their time rather than their cash. That's just the case for a lot of other businesses and kind of consumer behavior that we've observed over time. YouTube, for instance, does $40 billion in ad revenue and maybe $20 billion estimated in subscription revenue from YouTube Premium. YouTube has millions of advertisers. It will take time for Netflix to build up their number of advertisers."

The entire video is great. Well worth your time especially if you are a $NFLX shareholder. Well done @DrewCohenMoney !

Netflix Update: Losing Its Grip or Pulling Away?

[Marc Langefeld @marcvalueinvest]

@WilliamGreen72 Please share the interview or even better bring Nick Sleep on your podcast please!

[Marc Langefeld @marcvalueinvest]

@EquityBrian Thank you for the update on Tencent, Brian! Very informative!

[Marc Langefeld @marcvalueinvest]

Congratulations to the NY Knicks! I wasn’t sure if I would ever see them win the championship!

[Kevin O'Connor @KevinOConnor]

The Knicks are an example of smart, courageous team building. Firing Thibs for Mike Brown was a ballsy decision by the Knicks. One of many that got them to this point. RJ & Quickley for OG, trading a 1st for Hart, signing Brunson to a big deal, the Randle for KAT deal, sending a ton of picks for Bridges, and moves around the edges like adding Shamet and Alvarado. Some teams are built through the draft. The Knicks were built through masterful trades and signings. Big time credit to Leon Rose and that New York front office.

[Marc Langefeld @marcvalueinvest]

@WilliamGreen72 Great quote! Thanks for sharing William!

[Marc Langefeld @marcvalueinvest]

@realroseceline Wishing you all the best in your recovery!

[Marc Langefeld @marcvalueinvest]

@sidecarcap @TimIsgro Sidecar, Thanks! Are there any other Substacks that you recommend?

[Marc Langefeld @marcvalueinvest]

@DividendGrowth Yes, I have read it. Have your views changed since you wrote this post?

[Marc Langefeld @marcvalueinvest]

@DividendGrowth If one had invested when $NVDA started paying a dividend in 2012, the 14 year return would have been ridiculously good! Does this performance make you more interested in investing in dividend initiators in the future?