Chit Chat Stocks – Episode Summary

Episode: Our 6 Favorite Never Sell Stocks + Analyzing Ackman’s Portfolio And Shareholder Letter ($UBER, $CMG)
Date: October 3, 2025
Hosts: Ryan Henderson & Brett Schafer

Overview

In this lively "Power Hour" episode, hosts Ryan and Brett unpack major market news—from Shopify’s AI commerce partnership and Nike’s shaky earnings to the approval of the Texas Stock Exchange. The heart of the show delves into each host’s top “never sell” stocks—companies they intend to own for decades, come what may. The episode closes with the duo analyzing Bill Ackman’s fresh Pershing Square portfolio and his commentary on Uber, Chipotle, and more.

Key Discussion Points & Insights

1. Shopify Partners with ChatGPT for E-commerce (01:12–07:25)

• News: Shopify and OpenAI’s ChatGPT are integrating, allowing users to shop Etsy and (soon) Shopify merchants directly in-chat.
• Insight: Neither host believes this changes the competitive landscape for Amazon. The real edge for Amazon is logistical—delivery speed and reliability.
  • Brett: “If the shopping experience is what mattered, Amazon would have been dead a long time ago. It is much, much more difficult…Amazon has the delivery network.” (04:18)
• Conclusion: A marginal improvement for Shopify/Etsy UX, but not disruptive at scale.

2. Nike’s Faltering Earnings and Apparel Sector Analysis (07:25–14:10)

• Nike’s Results: Flat revenue (“minus 1%” constant currency), gross margins at 20-year lows, loss of market share to “On Running” and Hoka.
• Brand Erosion?: Aggressive discounting raises questions about Nike’s premium image, but hosts doubt huge impairment.
• Investment Case: Brett dismisses Nike as “too big” and unlikely to compound meaningfully from here.
  • Brett: “How does this stock go up 10x for me over the next 20 years? …Market cap's already $100 billion. You already have so much market share.” (10:53)
• Preference: Lululemon (smaller, cheaper) is slightly more interesting, but both are risky bets for turnarounds.
• Memorable Quote: Ryan: “This is a company that has missed its targets for more than a decade...and no one ever held their feet to the fire.” (12:07)

3. Texas Stock Exchange (TXSE): The Moat Test for NYSE/NASDAQ? (14:21–21:07)

• Approval Granted: TXSE, backed by BlackRock, Schwab, and Citadel, will launch in 2026.
• Purpose: Reduce burden/cost of going/being public, especially around governance and regulatory requirements that the NYSE/NASDAQ impose.
• Reactions:
  • Brett highlights the heavy “moat” NYSE/NASDAQ enjoy from decades without new competition.
  • Ryan: “If it leads to more companies coming public, I’m okay with it...But I would say: prove it.” (17:37)
• Investor Takeaway: TXSE is unlikely to dethrone NYSE/NASDAQ, but its heavyweight backers make it a credible experiment.

4. The “Never Sell” Portfolio—Hosts’ Philosophies & Picks (22:58–44:47)

Never Sell Criteria

Ryan:

• Not about company size or sector.
• Key: Founder/insider with a long-term, “never sell” mentality who avoids short-termism.
  • “...When the person running the company has no intention of making money fast or hitting short-term hurdles, they end up making choices for the business that they think will help shareholders the most over the long run.” (25:16)

Brett:

• Two-pronged: 1) Great management/culture with long-term thinking, 2) Company with a wide moat.

The Hosts’ Never Sell Stocks

Brett’s Picks:

1. Nintendo

   • “They nurture their brands, they don’t over-saturate...they have all the characteristics for a never sell business.” (27:19)

2. Interactive Brokers (IBKR)

   • Founder-led, relentlessly driving down customer cost.
   • “It’s one that’s going to stand the test of time and can be an easy durable winner in your portfolio.” (34:31)

3. Airbnb (ABNB)

   • “Founder mission led...this is a wide moat business with management with a long-term time horizon.” (38:16)

Ryan’s Picks:

1. Coupang (CPNG)

   • “Founder Bom Kim...makes decisions based on maximizing value for the business five, ten years down the road as opposed to maximizing value today.” (29:12)

2. Wise (WISE)

   • “They [Wise] constantly talk about trying to take cross border transfer fees to zero...That’s pretty rare and that’s why they’ve been able to drive such significant user adoption.” (35:19)

3. Nelnet (NNI)

   • “Not in love with the company for the business specifically. I just really like management’s capital allocation skills and the way that they treat shareholders.” (40:03)

How They Think About Selling

• Never sell unless something fundamentally changes in management/culture, or valuation becomes obviously ridiculous.

Notable Quotes:

• Brett (on IBKR): “He doesn’t know what Costco is!” (32:36)
• Brett (on Nintendo): “Maybe some say too long-term when they get impatient.” (27:19)

5. Commentary on Spotify, Portillo's, Project Kuiper and Value Investor Psychology (44:47–53:24)

• Spotify’s founder Daniel Ek moves to chairman—both see it as a non-event for the business.
• Portillo’s: Interview with a value investor changed Brett’s perspective—highlighting the emotional component from drawdowns.
• Amazon’s Project Kuiper (satellite internet): Neither expects it to move Amazon’s overall needle, but integration into Prime could subtly boost stickiness.
  • “If you’re investing in this company, don’t base anything off of Kuiper.” (48:17)

6. World’s Biggest Take-Private: Electronic Arts (EA) Bought by Saudi PIF (52:54–58:53)

• Deal: $55 billion buyout (largest-ever LBO), mainly funded by Saudi Arabia.
• Assessment: EA has grossly underperformed tech peers despite flagship IPs; free cash flow stagnated; industry competitiveness high.
  • Brett: “I throw EA in the too hard pile because I think gaming...has gotten so competitive...You get bigger backlash from any community than gamers.” (56:23)

7. Ackman’s Pershing Square Portfolio & Shareholder Letter (59:23–67:23)

• Top Holdings: Uber, Brookfield, Universal Music Group, Google, Restaurant Brands (Burger King, Tim Hortons), Amazon, Howard Hughes, Nike, Chipotle, Hilton.
  • Fun moment: Brett is corrected—Restaurant Brands is Burger King, not Taco Bell! (61:09)
• Chipotle Commentary: Ackman believes weakness is “macro” and that value proposition will still shine; both hosts are skeptical at current valuations.
• Uber: Ackman bets it wins even in an autonomous vehicle world, as a distribution platform.
  • Ryan: “...even in an AV future where a couple companies dominate, a lot of people still go through Uber. They have more active customers in five years than they do today.” (66:52)
• Overall View: Hosts agree—Ackman’s style is more readable than investable for them.

Standout Quotes & Timestamps

• Ryan (On AI + Shopify):
  “If you believe this is going to disrupt Amazon, you don’t understand that the competitive advantage that Amazon has, which is entirely in its broad selection and delivery.” (04:59)

• Brett (On Apparel Investing):
  “Never invest in apparel is a good principle to have.” (10:53)

• Ryan (On Never Sell Criteria):
  “The theme that all the companies have...is that management treats it as a never sell.” (25:16)

• Brett (On IBKR’s Founder):
  “He doesn’t know what Costco is!” (32:36)

• Ryan (On Wise’s Mission):
  “They...try to take cross border transfer fees to zero percent. They really want their fees to be nothing.” (35:19)

• Brett (On Airbnb):
  “Founder mission led...this is a wide moat business with management with a long term time horizon.” (38:16)

Timestamps Index

• [01:12] – Shopify x ChatGPT E-commerce Discussion
• [07:25] – Nike Earnings Breakdown, Apparel Market Thoughts
• [14:21] – Texas Stock Exchange (TXSE) News & Takeaways
• [22:58] – Defining & Selecting Never Sell Stocks
• [27:19] – Nintendo as a Never Sell
• [29:12] – Coupang as a Never Sell
• [32:36] – Interactive Brokers/Costco Founder Anecdote
• [35:19] – Wise as a Never Sell
• [38:16] – Airbnb as a Never Sell
• [40:03] – Nelnet as a Never Sell
• [44:47] – Honorable Mentions; Spotify Management Change Commentary
• [48:17] – Amazon Project Kuiper
• [52:54] – Electronic Arts (EA) Buyout Analysis
• [59:23] – Bill Ackman’s Pershing Square Portfolio & Shareholder Letter
• [61:09] – Restaurant Brands = Burger King, Not Taco Bell!
• [62:43] – Chipotle's Challenges
• [66:52] – Uber’s “AV World” Edge
• [67:31] – Closing Thoughts

Bottom Line

This episode is rich with practical investing wisdom and candid debate. If you're looking for stocks to “buy and forget,” frameworks for identifying them, or want to learn from big-name investors’ moves, this Power Hour delivers—in the insightful, humorous tone that makes Chit Chat Stocks a favorite for thoughtful investors.