The Buffett Lens

You know, looking at Fox Corporation is a bit like sizing up an old county fair that still draws crowds with its main attractions – the big sports events and the daily news shows that folks keep coming back for, even as the sideshows come and go. It's a business built on content that people feel they need, not just want, but the ground underneath keeps shifting with new ways to watch and pay.

What stands out first is the earnings record on the equity capital they put to work. Latest return on equity sits at 15.6 percent, with a five-year average near 17.7 percent. That's the real test I care about – not whether earnings per share tick up every quarter, but whether the business earns a solid rate on the money owners have tied up, without leaning too hard on borrowed funds. Their debt to equity runs about 0.7 times, which keeps things from getting stretched in a way that could bite during rough patches. Last twelve months brought in 16.2 billion in revenue and 1.7 billion in net income, numbers that show consistent earning power even if the last eight quarters have seen a gentle drift downward from 4.4 billion to 4.0 billion in revenue and 0.3 billion to 0.2 billion in profit. The valuation reflects some of that steadiness: a price-to-earnings ratio around 7.4 times and price-to-book near 1.2 times, which suggests the market isn't paying a premium for future glory.

They do have a measure of protection from their sports rights and content library, something like a castle with decent walls from network effects that make it harder for every newcomer to steal the audience. Management has kept the place running without obvious gimmicks, and institutional owners hold a large stake, which can help keep eyes on long-term results rather than quick headlines. Yet the moat score comes in at only 41 out of 100, so I wouldn't call this one of those businesses where the economics alone carry the day no matter who rows the boat. A strong manager can improve things, but the underlying currents in media – shifting viewer habits and new platforms – matter more than any one person's brilliance.

There are shortcomings worth noting plainly. Revenue and income trends have softened, and the whole industry faces pressure from cord-cutting and competition that didn't exist a decade ago. Insider ownership sits low at 1.3 percent, which doesn't signal the kind of skin-in-the-game alignment I prefer. In an environment where inflation can erode real returns even on a 15 percent return on equity, any business needs to adapt without relying on leverage or accounting tricks to look better on paper. Past growth rates here, like at most companies, are unlikely to repeat at the same pace.

Over time, if Fox can hold onto its grip on live sports and news that resist easy replacement, the economics could still deliver for owners who buy at sensible prices. These valuations look like they leave room for patience, the kind that lets you hold through the inevitable dips without expecting miracles each year. The business boat here isn't sinking, but it does require steady hands rather than flashy rowing. For those looking to act on this, the ticker for Fox Corporation on eToro is $FOXA.

Folks, picture a fellow who runs a workshop crafting sturdy wagons and harnesses just as a gold rush kicks off in the hills. He starts small, then suddenly can't keep up with orders as everyone heads west for the new strike. That's a bit like what Super Micro Computer has been doing lately, building servers and storage setups that power the big computing needs for artificial intelligence training and everyday use.

Their recent numbers show real earning power on the equity capital they've put to work. Revenue climbed from near nothing to over ten billion in just eight quarters, with last twelve months hitting thirty-three point seven billion and net income around one point two billion. The latest return on equity sits at sixteen point five percent, up from a five-year average of nine point two percent. That's the sort of mark on capital that matters more than just chasing bigger earnings per share each year. Insider owners hold nearly thirteen percent, which tells me the folks running things have real skin in the game and aren't just steering for short-term headlines. They've built these modular systems, from blade setups to liquid-cooled servers for AI work, and the business has grown by spotting demand early rather than trying to row a fancy boat in calm waters.

This outfit lines up with what I look for in a few ways. The managers appear to have created much of the extra value through solid operations, not just riding some industry wave. At a price around twenty-eight dollars and a market value of sixteen point seven billion, the shares trade at about thirteen times earnings and a bit over two times book value. That keeps expectations in check, and it avoids the kind of overpayment that can turn a decent business into a poor one for owners over time.

Still, I have to speak plainly about the shortcomings. The debt-to-equity ratio stands at one point sixteen, which is more leverage than I usually favor in a business that needs to weather rough patches without undue risk. Their moat score comes in around fifty-eight out of a hundred, based on some ecosystem ties, but it's no fortress—technology fields shift quickly, and bigger players can move in if demand for these AI servers eases. The average return on equity over five years was only nine percent, reminding us that strong recent results don't always last. Rapid jumps from tiny sales to tens of billions rarely repeat at the same pace, and market swings can distort what we see on paper.

Looking ahead, if Super Micro can keep delivering solid returns on the capital employed without leaning too hard on borrowed money, and if the underlying demand for reliable server hardware holds up over many years, the shares might offer reasonable long-term value at today's levels. The key is buying into the business economics themselves, not just the excitement, and then having the patience to let time do its work rather than expecting miracles overnight. The ticker for Super Micro Computer, Inc. on eToro is $SMCI.