Chit Chat Stocks: Top 5 International Stocks for 2026

Podcast Date: November 26, 2025
Hosts: Ryan Henderson & Brett Schafer

Episode Overview

In this episode, Ryan and Brett break down their top five international (non-US) stocks heading into 2026. Their focus is on businesses with substantial operations outside the United States that offer high-quality, durable business models, strong growth prospects, or compelling valuations. They cover each company’s industry context, investment thesis, current metrics, and key risks and opportunities, aiming to help listeners discover watchlist-worthy stocks for the coming years.

Key Discussion Points & Segment Highlights

1. Honorable Mentions and Methodology

• The hosts mention honorable mentions like Nintendo (excluded due to high US revenue share) and set the ground rules: eligible stocks primarily operate outside the US.
• Context: The US market is trading at premium valuations, so international opportunities are increasingly attractive, especially in Latin America, Asia, and Europe.
• [01:00] Brett: “I was excited to talk about these type of companies because … larger companies in the United States are trading at premium valuations and there’s a lot of opportunities to look at potentially high-quality businesses … that can be trading at cheaper prices.”

2. Grupo Aeroportuario del Sureste (Southern Mexican Airport Operator) — Ticker: SUR

• Overview: Manages multiple airports in Mexico and recently expanded with a large acquisition of Latin American airports.
• Investment Rationale:
  • Long-term contracts to manage airports, not own them—creates a natural monopoly.
  • Revenue streams: per passenger airline fees + commercial in-airport revenues.
  • Outstanding total returns: 20% annualized since 2000; $10,000 invested 20 years ago would be worth $819,000 (an “80 bagger”).
  • Emerging headwinds: Recent stagnation in Cancun airport traffic (down 4% in 2025), increased competition from Tulum’s new airport.
  • [05:02] Brett: “If you look at our friends at Fiscal AI, Grupo Sureste … has produced a 20% annual total return since going public in 2000. So, so close to 25 years. 20% total returns, that is knocking on the door of being a 100 bagger.”
  • Recent acquisition: $2.56B deal for interests in 20 airports across Brazil, Ecuador, Costa Rica, and Curacao—a bid to diversify away from reliance on Cancun.
  • Valuation: ~9x EV/EBITDA, currently in a 19% drawdown.
• Risks & Opportunities:
  • Traffic stagnation in Cancun (now under half of company total).
  • Potential growth from post-acquisition integration and increased commercial revenue.
  • Natural monopoly mitigates most competitive risks.
• [16:11] Ryan: “Ten thousand dollar investment twenty years ago would be worth just under a million dollars today. 819K. So 80 bagger over 20 years. That’s phenomenal returns.… there shouldn’t be a structural change in the business model moving forward.”

3. Grab Holdings (Southeast Asia Super App)

• Overview: Dominant ride-sharing, delivery, and fintech platform across Southeast Asia (“super app”).
• Investment Rationale:
  • Industry leader in most regional markets with market share: 97% Malaysia, 91% Philippines, 85% Thailand. Indonesia remains competitive with ~50% market share split.
  • The platform offers mobility (ride-sharing), deliveries, and financial services (including e-wallets, rewards, and microloans).
  • Strong network effects due to user and driver growth; more users attract more drivers and vice versa.
  • Path to profitability: Has achieved positive operating earnings, improved margins, and reduced losses since IPO.
  • Potential merger with Gojek (main Indonesian rival) could create an unchallenged regional monopoly—rumored to be closer after management changes and government involvement.
  • [24:31] Ryan (quoting “The Diplomat”): “…the involvement of Donatara in the shareholder structure of a merged Goto Grab entity would address this…”
  • Forecasts: Targeting ~$2B EBITDA by 2030, current EV ~$16.5B (~8x 2030 EBITDA).
  • CEO Anthony Tan praised for transparency and execution.
• Risks & Opportunities:
  • Execution on financial services expansion (credit risk).
  • Regulatory hurdles, particularly regarding foreign ownership in Indonesia.
  • Major upside if Gojek acquisition succeeds, limited downside due to network effects.
• [27:54] Brett: “When they IPO’d, a heavy loser of just operating earnings… now they’re in a much healthier financial position…”

4. Hermès International (Global Luxury House)

• Overview: World-renowned French luxury brand with nearly two centuries of heritage, best known for exclusivity and iconic products like the Birkin bag.
• Investment Rationale:
  • Wide moat driven by: heritage, best-in-class branding, limited supply structure, and unparalleled pricing power (aftermarket prices often double official retail).
  • Consistently high profit margins (40%+ EBIT).
  • Able to raise prices—protected from competition targeting less affluent consumers.
  • Resilient sales growth: 9-10% (constant FX), outperforming sector even as broader luxury slows.
  • Track record: 18% CAGR since 1994—a nearly 1,000x return for long-term holders.
  • Attractive if purchased at a lower multiple: currently 33x EV/EBIT, but has historically been available below 25x.
• Risks & Opportunities:
  • Luxury sector cyclicality, risk of brand dilution if exclusivity is compromised (though Hermès has strong discipline on this front).
  • Strong downside protection—ultra-affluent consumers less sensitive to broader economic slowdowns.
  • [36:32] Brett: “Remember the Buffett thing where it’s like, if you gave me $10 billion, could I replicate it? No, you can’t replicate Hermès with $10 billion.”
  • [37:03] Ryan: “…The average Hermès store was doing about $12 million in sales [in 2013]. Last year, they were doing $52 million per store. I guarantee…I would bet 80% of that growth has come from price growth, not them selling more items…”
• Memorable Moment:
  • [38:48] Brett shares a story where a descendant of the Hermès family lost access to a $15B inheritance due to a financial advisor’s fraud.

5. Wise (International Digital Money Transfer Platform)

• Overview: UK-based platform for cross-border money transfers, offering a multi-currency account for personal and business use; known for industry-low fees.
• Investment Rationale:
  • Proprietary global banking network—licenses in many countries let Wise “net settle” across local bank accounts, avoiding costly traditional wire systems.
  • Take rates have decreased not from competition, but from Wise itself driving prices down.
  • Rapid volume growth: Quarterly send volume up from $13B (five years ago) to $44B.
  • Strong business customer momentum—these clients are stickier and higher value than consumers.
  • Robust, recurring revenue streams: transfers, business solutions, debit cards, deposit interest.
  • [41:17] Ryan: “WISE is actively trying to be the lowest cost remittance provider globally, and this shows up in their take rate… This is not competition bringing price down, this is them driving their own prices down intentionally.”
  • Positive validation: Nubank (100M+ customers in Latin America) signed as a partner for cross-border payments.
  • [49:22] Ryan: “It is a very high-quality business… honest management with skin in the game…and Carmen Christo, the CEO, owns 18% of the shares.”
• Risks & Opportunities:
  • Short-term earnings dip: 2025 profit before tax will be slightly lower due to lower interest rates and higher investments.
  • Management expects 15-20% revenue growth, 13-16% margin long term.
  • Valuation: Not yet at Ryan’s “sub-10x forward earnings” target, but close enough to stay an active holding.
  • Downside: If growth slows, Wise defaults to a “bond-like” 6% dividend yield.
  • [50:51] A: “You are a buyer on the dip.”

6. Bolsa Mexicana de Valores (BMV – Mexican Stock Exchange)

• Overview: The dominant stock exchange in Mexico, with ~80% market share.
• Investment Rationale:
  • Core business: equity and derivatives trading, new listings, central depository services, market data.
  • High natural monopoly, resilient through competition—new rival exchange failed to take share or force pricing changes.
  • Revenue up 10% YoY in pesos, despite a multi-year cloud modernization program elevating costs temporarily.
  • Well-aligned management; prioritizes sensible capital allocation between capex, dividends (6% yield), and buybacks.
  • Cheap: earnings yield 8.5%, trades at ~10x current earnings (compared to ICE in the US at ~28x).
  • Listings are set to pick up, supporting future growth.
  • [56:18] Brett (on management’s capital allocation): “We cannot have high capex, high dividend and high buybacks all at the same time because we’re going to run out of cash. I like that straightforward nature… Our strategy will be to give back as much cash as we can…”
• Risks & Opportunities:
  • Short-term headwinds: Capex eating into margins, slow equity listings (improving with market conditions).
  • If revenue doesn’t grow, downside is a stable “bond-like” yield; upside is potential multi-bagger status with market/economic growth.
  • [58:22] Brett: “Just as high of quality, something that’s still very high quality that you can buy in Mexico, which might be trading at 10 times earnings over the next few years…makes much more sense to buy Bolsa over Intercontinental Exchange.”

7. Quick Honorable Mentions [59:50–61:43]

• Nintendo – Disqualified due to US revenue.
• Grupo Centro Norte – Mexican northern airport operator (Brett holds).
• Coupang (South Korea e-commerce) – Both hosts mentioned as current holdings.
• MercadoLibre (Latin America e-commerce/fintech) – Noted for exceptional, consistent growth (22 straight quarters of 30%+ YoY revenue growth).
• Taiwan Semiconductor (TSMC) – Industry-wide moat, mentioned as a small hold for Ryan.
• Sea Limited – Former market darling, business evolving from gaming to e-commerce.

Notable Quotes

• [05:02, Brett on Grupo Sureste:] “20% total returns, that is knocking on the door of being a 100 bagger. Clearly it is a good business, I think, or at least it has been a good business for shareholders over the last 25 years.”
• [16:11, Ryan on Grupo Sureste:] “Ten thousand dollar investment twenty years ago would be worth just under a million dollars today. 819K. So 80 bagger over 20 years.”
• [21:10, Ryan on Grab:] “Once you are the leader, you’re pretty hard to replace. For example, Uber ended up exiting all these Southeast Asian markets…”
• [24:31, Ryan quoting The Diplomat:] “…Donatara would possibly be involved, perhaps by holding a golden share conferring special voting rights. …would address this [regulator concern].”
• [36:32, Brett on Hermès:] “You can’t replicate Hermès with $10 billion even. …If you look at the revenue per store… In 2013, the average Hermès store was doing about $12 million in sales. …Last year, they were doing $52 million per store.”
• [49:22, Ryan on Wise:] “…it is a very high quality business… honest management with skin in the game. Carmen Christo, the CEO, owns 18% of the shares.”
• [56:18, Brett on BMV management:] “I like that straightforward nature. …Our strategy will be to give back as much cash as we can and not keep cash that we do not need…”

Timestamps for Important Segments

• [01:00] – Brett discusses criteria for international stock selection.
• [04:46] – Grupo Aeroportuario del Sureste: business model, moat, and growth.
• [11:39] – SUR’s transformative Brazil/LatAm airport acquisition.
• [18:20] – Grab Holdings: Business model and regional dominance explained.
• [24:31] – Details on potential Grab/Gojek merger.
• [30:04] – Hermès: luxury sector context and investment case.
• [38:48] – The Hermès family scandal story.
• [41:17] – Wise: digital infrastructure, business model, and margin discussion.
• [47:23] – Wise: Partnership validation and earnings outlook.
• [50:51] – Wise: Buy-on-the-dip commentary; margin of safety.
• [51:40] – Bolsa Mexicana de Valores: business model, valuation, and macro context.
• [56:18] – BMV management on prudent capital return philosophy.
• [59:50–61:43] – Honorable mentions and closing thoughts.

Conclusion – Top 5 International Stocks for 2026

The final list:

1. Grupo Aeroportuario del Sureste (Mexico airports, ticker: SUR)
2. Grab Holdings (Southeast Asia super app)
3. Hermès International (European luxury house)
4. Wise (Digital cross-border payments, UK)
5. Bolsa Mexicana de Valores (Mexican stock exchange)

The hosts wrap up emphasizing the blend of sizes, regions, and business models—some dominant monopolists with decades-long moats, others with explosive regional opportunities and strong management. Regardless, all are deemed deserving of a close look for long-term international diversification, especially for investors feeling boxed in by high US equity valuations.