Copart $CPRT new CEO pay package looks on the surface like textbook alignment, but there are some caveats. The structure is basically... - Jay Adair takes a $1 salary, no bonus and no new equity for 10 years. - He gets instead one 20M-share option in four tranches, with strikes at $26.27, $35.03, $43.78 and $52.54. The option has a 5-year cliff, a clawback if he leaves early, and his gains are locked up until year 10. So basically... - Stock flat → he earns $0. - Stock 2x → he earns ~$263M. My "concern" is the timing of the option issue, which evidently impacts the existing holders more than it does the recent holders. Jay Adair came back as CEO on July 31, with the stock near multi-year lows around $28, down from ~$52 in mid-2025. The strikes are anchored to the depressed price in which he (opportunistically?) became CEO. This ultimately means that... - Tranche 1 pays on any rebound, so many shareholders might still be underwater while he makes millions (this has no simple solution as setting the bar at ATH would also not be fair) - The “ambitious” top strike of $52.54 is roughly where the stock already traded in 2025... - “Doubling the stock” mostly means getting back to where it was without any new value creation - Over 10 years, a 2x is roughly ~7% a year Now, a founder-family CEO taking $1 and betting everything on the stock is rare and definitely better than nothing, but the design matters too and reality is more nuanced than it appears. As designed, Jay Adair could earn hundreds of millions simply by returning Copart to where it was before he came back. Still subject to shareholder approval!

1/ I went down a rabbit hole comparing Rollins ($ROL) and Verisure ($VSURE). Pest control and home alarms have more in common than you might think and Rollins is typically considered the better biz...but after looking at both, I'm less convinced Let me explain why 👇

1/ ASML $ASML had another great quarter (to nobody’s surprise). €11.7bn in sales and 57.5% gross margin. I recalculated my 2028 numbers with the new information and I'm significantly ahead of the company's 2030 guide (two years early) Some thoughts 👇

1/ Rollins has been one of the great compounders of the last 30 years but the stock is down ~50% in 12 months. Most people now ask themselves if its cheap. I think the better question is one almost nobody asked before: what does it cost Rollins to stand still?

One pager on $TBBB A darn good business

Nintendo's earnings are fine, my highlights (will bring a detailed article once the Q&A is published): - Sales down, but that's normal considering Q1 FY 2026 was "launch" quarter. Nintendo still sold a decent 3.82M hardware units in the Q - Software sales of the SW1 very strong (thanks to Tomodachi Life). People forget that Nintendo still monetizes a 100M+ user base as it grows the SW2 - Profitability up significantly, driven by higher software sales and tariff refunds ($300M) which Nintendo plans to keep (as they did not pass them on to customers) - Guide unchanged which can be spun positively and negatively. Positive: things are not getting incrementally worse and its Q1 so Nintendo was never going to change the guide to the upside. Negative: despite the tariff refunds the operating profit guide is unchanged - Nintendo claims (we know this is the case) that SW2 sales continue to do well in Japan even after the price hike All in all, a decent quarter all things considered. Let's not forget that most heavy hitters have not yet come out to stimulate hardware sales but that despite this the SW2 remains ahead of the SW1 $NTDO.NE

1/ Hermès dropped 10%+ in a day after Q2/H1 2026 earnings. The key Q is... Were they that bad? The short answer is they weren't and the stock may finally be at a decent valuation, but let's walk through them. 🧵

Published Medpace's earnings digest. Great quarter and a lot of gold nuggets that went undiscussed on X: "While many expected FY 2027 to be a “cliff” year after two consecutive quarters of weak book to bill, it seems like the pipeline is filling up nicely and the cliff will most likely be avoided. This is a very interesting topic because the backlog figure is actually a terrible leading indicator of future revenue growth. You’ll be wondering “how can this be?.” There are two reasons. First (and as I’ve discussed in other articles), Medpace also has a pre-backlog. This pre-backlog gets filled with business that has been awarded to Medpace but in which management is not yet “completely” sure that will make it through to revenue."