1) Two companies I've previously written about reported earnings after the close yesterday and have rallied this morning. So let's take a quick look at both...
Beer and spirits giant Constellation Brands (STZ) reported third-quarter revenues of $2.22 billion, slightly ahead of estimates of $2.16 billion. It also reported adjusted earnings per share ("EPS") of $3.06, handily beating estimates of $2.63, and boosted guidance for next quarter.
These results sent shares up as much as 8% this morning to around $152.
Longtime readers may recall that I took a first look at the company on November 13, 2024, when the stock was at $240.71. Fortunately, I passed on the stock, saying it looked only "moderately interesting."
I last wrote about it on September 3, 2025, when the stock hit a five-and-a-half-year low of $146.49. At that time, I concluded:
As I covered on February 19, Berkshire Hathaway (BRK-B) bought the stock in the fourth quarter of 2024. I'm glad my team and I stayed away, as STZ has lost around 40% of its value since the beginning of the fourth quarter.
At some point, the stock will be worth bottom-fishing. But it feels too early right now.
Sure enough, the stock fell to a 10-year low of $126.45 in November and has rallied 11% since then through yesterday's close.
Analysts expect EPS of $12.39 next year. That means today, the stock is trading at a mere 12 times forward earnings – an attractive multiple for a high-quality business.
My Stansberry's Investment Advisory team and I will be taking a closer look at Constellation. And if we decide it's our single best idea, subscribers will, as always, be the first to know.
If you're not already a subscriber, you can learn more and become one by clicking here.
2) On January 26, 2024, I wrote about my visit to Kura Sushi USA (KRUS), a revolving sushi bar restaurant. I said that "I loved the concept and would definitely go back." But I concluded:
I'm neither recommending it nor putting it on my list of stocks to avoid.
Kura is clearly a bad short: It's a unique concept run by experienced operators, so it could grow significantly from its small unit base and market cap today.
But the track record of richly valued restaurant concepts is abysmal, so I doubt I'm ever going to get comfortable with this stock...
The stock was around $91 when I wrote that e-mail. Sure enough, it has performed poorly since then, as you can see in this chart:
The company reported fiscal first-quarter 2026 earnings yesterday. Comparable restaurant sales decreased 2.5% year over year, though new units resulted in 14% revenue growth, slightly ahead of estimates. Adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") were $2.4 million, missing estimates of $4.1 million.
But the company raised revenue guidance for the year to between $330 million and $334 million. It also said restaurant-level operating profit margins would be approximately 18%. As a result, the stock jumped as much as 16% this morning.
It's hard to value Kura Sushi because it's currently unprofitable, and analysts only expect a small profit in 2027. So I'm just going to watch with interest from afar...
3) One of my favorite business writers, William Cohan, recently wrote about one of my favorite stocks, Berkshire Hathaway (BRK-B).
In his Puck article, Make Berkshire Hathaway Great Again?, he speculates about three companies that Warren Buffett's successor and new CEO Greg Abel might buy "with the staggering $358 billion bequeathed to him by the most legendary investor of his generation."
First, Cohan suggests Bloomberg, valued at around $125 billion:
Mike Bloomberg, the controlling shareholder with 88 percent ownership and around a 91 percent voting stake, could run the company for another decade or more – his mother lived to be 102 years old. But he still needs to think about succession...
And what better buyer could there be than Berkshire Hathaway? The cash is there, even if it takes $150 billion or more to buy the whole thing. In the meantime, why not think about taking steps toward that long-term outcome, by selling a minority stake in Bloomberg L.P. to Berkshire? It sure seems like a perfect fit for Berkshire: There is obviously a highly competent management team, and it has a highly unique and seemingly impenetrable niche in providing real-time trading data to a loyal group of devoted customers willing to pay $30,000 a year to rent a Bloomberg terminal.
Next, he suggests investment-banking giant Goldman Sachs (GS):
That's right, for a mere $300 billion or so, Goldman Sachs can be yours, Greg. (It has a market cap of $270 billion, and I'm applying a premium.) The premium would normally be more, and maybe it will take more to get David Solomon and his board to sell to Berkshire – the folks at Goldman know something about selling companies – but the Goldman stock is up 55 percent in the past year, so it's already had quite the run.
Would David sell Goldman Sachs? I have no idea, but Berkshire bestows a certain prestige on a company. Like Bloomberg L.P., Goldman seems like a classic Berkshire company: It has a long history, since 1869, of performing well through every manner of economic cycle, with a highly defensible position in its industry. Yes, there is plenty of competition in financial services, but Goldman Sachs has proved to be the gold standard of the industry through thick and thin.
Lastly, Cohan recommends GE Aerospace (GE), the world's largest jet-engine manufacturer and servicer:
The moat around GE Aerospace is quite large and nearly impenetrable. In other words, another perfect potential Berkshire Hathaway acquisition candidate.
The problem is that GE Aerospace now has a market cap of $333 billion, so it would use up every bit – and more, probably – of Berkshire's cash hoard if Greg decided to buy it. It would be, by far, the largest acquisition in history, and by far Berkshire's largest acquisition. And unlike Goldman, which has a price-to-earnings [P/E] ratio of around 18, GE Aerospace has become quite pricey. The stock is up 132 percent since it became the successor company to GE in April 2024, and its P/E ratio is more than 40x. Still, it does strike me as just the kind of company Berkshire should own – a technological leader in a capital-intensive and ever-growing and changing industry, with few competitors. (It operates in a "duopoly of duopolies," or so it's said – a very big moat indeed.) It could be done, but only if Greg decided to shoot the moon.
I don't think Berkshire is likely to do any of these acquisitions – I'd give odds of 15% to Bloomberg, 10% to Goldman, and 5% to GE. But I like how Cohan is thinking. I wouldn't be surprised to see Abel do a huge acquisition...
4) As you read this, I'm landing in Las Vegas to attend the Consumer Electronics Show ("CES") today and tomorrow. I'll be looking for good stock ideas – and ones to avoid – so keep an eye on my dailies over the next few days.
When I was at my first CES 12 years ago, it was during the peak of the 3D-printing bubble. I was short all five publicly traded stocks in the sector, the largest of which were (and still are) 3D Systems (DDD) and Stratasys (SSYS).
At CES, I gained even more conviction for my short thesis when I saw many Chinese competitors all selling knockoff printers at a fraction of the price of the market leaders. So I doubled down on my bet and went very public with my views.
Here are two articles about it from Business Insider: Whitney Tilson Says 3D Printing Stock Is Going to Plunge 90% and Here's the Hilarious and Brutal Chart That Whitney Tilson Sent Out to Explain the Crash in a Big 3D Printing Company.
It paid off spectacularly, as every stock dropped roughly 90% in less than two years (and they've never recovered).
You'll laugh at the route I took to get to Las Vegas... Just yesterday morning, I awoke in northern South Africa, along the Zimbabwe border, at the end of a wonderful 10-day trip with my parents. (It was a last-minute add-on to my two-week trip to visit them in Kenya last month – see my previous e-mails.)
We drove two hours to a small airport in Polokwane, flew an hour to Johannesburg, then flew four hours to Nairobi, Kenya where I said goodbye to my parents. I then took one of the longest flights in the world, 15 hours to JFK International Airport, and connected to a five-hour flight to Vegas – phew!
5) For those who might be interested in visiting South Africa someday (which I highly recommend!), I'll share some pictures today and in my next few e-mails.
On our first day, we flew from Nairobi to Johannesburg and took a short one-hour connection to the port city of Durban. Then the next morning, we took a long walk along Durban's famous beach, had lunch at the famous Oyster Box hotel, and got a tour from the manager, Dylan.
Best regards,
Whitney
P.S. I welcome your feedback – send me an e-mail by clicking here.