Nelnet: Our Berkshire? (Ticker: NNI)

An undervalued $4.6 billion market cap and the aim for perpetual holding.

“We believe we still have a significant amount of unrealized value in these businesses as well as in real estate, solar tax equity, and other major ventures.”

I have been invested in Nelnet since the beginning of 2021, making it the longest-tenured holding in my portfolio (I am 29). My hope is to hold Nelnet not just for five years, but 50, and even in perpetuity long after I pass.

It can be our Berkshire Hathaway.

Who wouldn’t want that?

Comparisons to Berkshire Hathaway create tension. Buffett is the top dog for a reason, and trying to say your small-cap is the next legendary conglomerate can elicit eye rolls. Don’t tell them the business is also located in Nebraska. Are they just cosplaying Berkshire for fun?

In the case of Nelnet, I think it does have the culture, track record, and size to generate returns similar to Berkshire. If one can actually find the next Berkshire, you are setting up a trajectory for 1,000x returns over the next three to four decades, with a low risk of ruin. All you have to do is keep buying and never sell.

Again, I will ask readers: who doesn’t want this?

In this full introductory research report, subscribers to Emerging Moats Stock Research will receive:

• A history of Nelnet

• Segment overview

• Idiosyncratic leadership

• Monetizing hidden value

• Is there an emerging moat?

• My investment decision

A long and winding history