Episode 959: A No Brainer Buy. But Why？ Kioxia, Microsoft BIG Analysis, PP&E Masterclass

**Martin Shkreli** (0:00)
There's actually a checklist. Who's that guy? John the Blue Ridge guy. He had a checklist. Checking the list, making it twice. John Griffin, and you can go, I think you should be able to download his checklist somewhere. I just dropped generational alpha, Jenny. I just heard that last night. Jenny alpha for you. Go look up his checklist. Service now. Wow, it's crushing it. Yeah, I didn't think SAS could rally. I really didn't. What's up, commie? Let me see if I can get a guest. See if one of my colleagues is around. I need another XLR cable, man. It's still not taking it as an input, but who knows? Let me see. Check, check, check, check. Oh, can you guys hear me? Hold up, hold up. Where do I work? I work at a software company called DL Software. We make a product called Godel. Is this mic clear at all? Cool.
Christina, we need a producer. Maybe a mod too, but a producer slash mod. That would be ideal. I don't know news where. But yes, you can set all kinds of filters. Let me check it out. Still programming, of course. Got a program. Can't stop. Can't just stop. Google breaking out a little. He went to his office. Getting something of a rally here. Not quite from memory, but... Can you tell something about QCLS, please? Well, I work there, so I can't tell you too much. So I'm not sure. I want to get in trouble. Once upon a time, you guys may know this, but I got into a lot of trouble, and I didn't even do anything. It was just the appearance of doing something wrong. So you can forgive me for wanting to be a little careful, I hope. Yeah, I mean, we would interview for a producer. It would be a pretty high-paying job, and it would be ideally in person. Somebody would come to our office, like an engineer. Do you want your breakfast? It was good. Thank you. Thank you. Oh, no, police. We're off 4.6 next week. We have a lot more to do today. Cool stuff to look into, too. Any other opinions? Yeah, momentum is no momentum. Yeah, I don't like Accenture, no. I'm about to end this man's whole career. I can't tell you I know a lot about Rare Earths. I don't. Yeah, too much iced coffee. So let's look at, oh, oh, cerebrus. I haven't been trading this. Definitely been heavy, but not as bad as the other semis. Tells you something. What's up? What's up? What's up? Okay, maybe we should look at CapEx. So looking at Kioxia, we can look at that some more. So we have Japanese financials we're dealing with, which is always a little odd but fun. So what's tonight? Microsoft and Meta? Or just Microsoft?
Both? We got to get previews for both. I want to talk to my colleagues for earnings reports. Tonight? Tomorrow? It's tonight. 4.3 baby. 4.15 probably actually. Okay, so I want to show. Yeah, REPL is sort of cooked, right? I mean, I want to go through the balance sheet of Kioxia, so we get a sense for what's the capital structure of this company. So of course we start with the cash. They have 470 billion yen, and then they have AR. That's 661 billion accounts receivable. Japan has a lot of these weird financial assets. I bundle them all into cash. That's been what I've been doing for 20 years. And there's accounts receivable. I'm sorry, inventory. And OCA, other current assets for you home gamers. And finally, here's the property plan equipment. Now, this is the most important thing, right? I like to say PP&E is the soul of business, but I say other things are the soul of business too, so take it with a grain of salt, or soul. So PP&E is quite critical. You really can't have a, in the old days at least, you can't have a business without property plan equipment. Now, the world has changed. We have software businesses, asset light businesses, things like that. But in a really old viewpoint, your business kind of is your factory.
It kind of, without your factory and plant, what do you have? Now, these days, we have people, and the people are kind of the assets in some ways, or brands. But I think, I want you to think about it this old way to some extent. And this is a kind of a Buffett way of thinking about it, which is important, because it's this very practical, no-nonsense way. And I'll explain why in a second. And the nice thing about this, it's not gonna, like most things, there's not gonna be some like magic trick where a number is gonna pop up and you're gonna know something. That is not, it's not the way it works. But you are gonna learn about how to think about this. So the market cap of the company is 29 trillion yen.