ONON Fire

This episode explores the potential impact of President Trump's executive order mandating "most favored nation" pricing for prescription drugs on pharmaceutical companies, and analyzes On Holding's recent earnings report, alongside a discussion on Alphabet's valuation. The conversation begins with an analysis of the executive order, with David Meier suggesting the market's muted reaction indicates skepticism about its enforceability, while Ricky Mulvey highlights concerns from pharma lobbyists about potential trillion-dollar losses. Against the backdrop of potential regulatory changes in the pharmaceutical industry, the discussion pivots to On Holding, where sales are up 40% year-over-year, with Meier attributing this success to the company's focus on product quality and direct-to-consumer sales. More significantly, the conversation shifts to Alphabet, where an analyst suggests a breakup to unlock value, with Meier questioning whether individual entities could sustain the necessary capital investment without the support of the search business. The analysts debate whether Alphabet's current valuation, similar to that of a mature grocery store chain, accurately reflects its diverse portfolio and growth potential, with Meier suggesting the stock may be undervalued due to short-term risks and uncertainty. The episode concludes with a segment on bond investing, offering tips on diversification, credit quality, and understanding bond quotes, as well as exploring defined maturity ETFs as an alternative to individual bonds.