分组1: Berkshire Hathaway - Berkshire Hathaway has a strong balance sheet and its core insurance business remains stable despite challenges from California wildfires [1] - Greg Abel took over leadership on January 1, managing $670 billion in investable assets and numerous subsidiaries [2] - The stock price has stagnated since Buffett's retirement announcement, but the company continues to generate strong cash flow and grow its assets [8] 分组2: Gates Foundation - The Gates Foundation receives annual donations from Warren Buffett, including a recent donation of 9.4 million Class B shares of Berkshire Hathaway [4] - The foundation's trust holds a portfolio worth approximately $38 billion, with 59% invested in three major companies [5] - Bill Gates aims to give away nearly all his wealth through the foundation over the next 20 years [6][7] 分组3: WM (Waste Management) - WM operates a solid waste collection and disposal business with a competitive moat due to regulatory barriers for new landfills [10] - The company has shown strong revenue growth and improved operating margins, even amidst challenges in the recycling market [11] - WM trades at an attractive valuation with an enterprise value to EBITDA ratio of less than 14, making it a solid investment option [12] 分组4: Canadian National Railway - Canadian National Railway has a wide competitive moat and geographic advantages, operating tracks from coast to coast in Canada and into the U.S. [13][14] - The company has managed to offset declines in certain freight categories with increases in others, although overall volume growth has been modest [15] - With an enterprise value to EBITDA ratio of less than 12, Canadian National Railway is considered a good long-term value stock [18]

Waste Management truck parked in a residential neighborhood, signifying the company's dominant performance in its sector. Key Points Waste Management’s Stericycle deal broadens its footprint into regulated, higher-margin services, but integration execution is now the swing factor for results. Core collection and disposal remains the profit engine, while the healthcare unit has been the main source of near-term friction. A larger dividend and a renewed buyback plan could become the next catalyst if cash ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was approximately $485 million, representing a year-over-year increase of 17.9% or $73.7 million, driven by solid waste pricing strength and acquisitions [5][10] - Adjusted EBITDA reached a record $120 million, up 16.4% year-over-year, with an adjusted EBITDA margin of 24.7%, down approximately 30 basis points year-over-year [5][12] - Year-to-date adjusted free cash flow totaled $119 million, up 21% year-over-year, supported by EBITDA growth and stronger working capital performance [5][15] - The company raised the lower end of its revenue and adjusted EBITDA guidance for 2025, increasing midpoints to $1.835 billion and $420 million, respectively [15] Business Line Data and Key Metrics Changes - Solid waste operations saw a revenue increase of 20.6% year-over-year, with pricing up 4.6% and volume essentially flat [10] - Resource solutions revenues increased by 7.8% year-over-year, although recycling and processing revenue decreased by 5% due to lower commodity prices [11] - The integration of Mid-Atlantic businesses is progressing well, with expectations for further gains in Q4 and into 2026 [6][19] Market Data and Key Metrics Changes - Landfill volumes increased by 11.7% year-over-year, with internalized volumes growing nearly 20% [10][19] - The average recycled commodity revenue per ton decreased by 29% year-over-year due to softer markets [11] - The company is working on expanding landfill capacity in New York, with permits expected in the coming quarters [19][102] Company Strategy and Development Direction - The company’s M&A strategy focuses on a balanced mix of smaller tuck-in acquisitions and larger opportunities to expand geographic footprint [6] - The company has an active acquisition pipeline representing approximately $500 million in annualized revenues [7] - The transition to a new Executive Chairman role for John W. Casella at the end of 2025, with Ned Coletta stepping into the CEO role, indicates a strategic leadership shift [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving enhanced 2025 guidance, citing sustained operating and acquisition momentum [7] - The company anticipates another year of strong growth in 2026, with organic growth expected in the range of 4 to 5% and an additional 3% from rollover acquisition revenue [16] - Management highlighted the importance of integrating acquisitions quickly to realize margin expansion opportunities [30][95] Other Important Information - The company completed eight acquisitions year-to-date, adding approximately $105 million in annualized revenue, with a pending acquisition expected to close at the beginning of 2026 [6][21] - The company is focused on improving operational efficiencies through automation and system consolidation [20][41] Q&A Session Summary Question: Concerns about long-term margin trajectory - Management indicated that while margins are down slightly year-to-date, they expect significant multi-year margin expansion opportunities from acquisitions [30][32] Question: Clarification on synergy capture in the Mid-Atlantic - Management confirmed that the $5 million savings expected in 2026 does not include pricing or margin lift, as they are still in the budgeting process [36][38] Question: Internalization of landfill volumes - Management noted that internalization of volumes from acquisitions is a key focus and has been yielding positive results [48] Question: Timeline for Mid-Atlantic billing system - Management expects to complete the billing system integration by the end of Q1 2026, which will enable better pricing and operational efficiencies [66][68] Question: Pricing evolution in the Mid-Atlantic - Management stated that pricing strategies will evolve as they integrate systems and optimize routes, but it may take several years to fully realize the potential [80] Question: Impact of Mountain State Waste acquisition timing - Management clarified that the delay in the Mountain State Waste acquisition is due to normal regulatory processes and does not indicate any issues [83] Question: Confidence in landfill permitting processes - Management expressed confidence in successfully obtaining permits for landfill expansions, citing their strong track record in the Northeast [101][102]

Core Insights - Casella Waste Systems, Inc. reported record performance in key financial metrics for Q3 2025, driven by a disciplined acquisition strategy and strong organic growth [3][4][6] - The company completed eight acquisitions in 2025, contributing approximately $105 million in annualized revenue, with an additional $30 million expected from a pending acquisition [3][4] - Revenue for Q3 2025 reached $485.4 million, a 17.9% increase from Q3 2024, primarily due to acquisition impacts, price growth, and strong performance in the Resource Solutions segment [4][7] Financial Performance - Operating income for Q3 2025 was $29.4 million, up 20.5% from the same period in 2024, excluding a non-recurring landfill closure charge [5][6] - Net income for Q3 2025 was $10.0 million, a significant increase of 73.0% compared to Q3 2024, largely influenced by operating income factors [6][7] - Adjusted EBITDA for Q3 2025 was $119.9 million, reflecting a 16.4% increase year-over-year, driven by both acquisitions and organic growth [6][7] Cash Flow and Guidance - Net cash provided by operating activities for the year-to-date period was $233.2 million, a 35.9% increase from the same period in 2024 [9] - Adjusted Free Cash Flow for the nine months ended September 30 was $119.5 million, up 21.0% from the previous year [9] - The company raised the lower end of its revenue and Adjusted EBITDA guidance for fiscal year 2025, reflecting confidence in strong performance and limited exposure to recycled commodity price volatility [11][16] Acquisition Strategy - The company has positioned itself to capitalize on a robust acquisition pipeline, with ongoing integration efforts in the Mid-Atlantic region expected to enhance business performance [3][4] - The anticipated acquisition of Mountain State Waste is expected to add another $30 million in annualized revenue, further strengthening the company's market position [3][4] Market Position - Casella Waste Systems provides solid waste, recycling, and resource management services primarily in the eastern United States, serving a diverse customer base [17]

Core Viewpoint - The analysis presents a neutral stance on Waste Connections, Inc. (NYSE: WCN) (TSX: WCN:CA), highlighting strengths in pricing but noting challenges such as volume softness, commodity price headwinds, and ongoing regulatory and litigation risks [1]. Summary by Relevant Categories Company Performance - Waste Connections, Inc. exhibits good pricing strength, which is a positive indicator for its financial health [1]. Market Challenges - The company faces volume softness, which may impact overall revenue generation [1]. - There are commodity price headwinds that could affect profitability [1]. - Ongoing regulatory and litigation risks present additional challenges for the company [1].

Core Insights - Waste Management (WM) reported a 19% non-GAAP operating EBITDA growth in Q2 2025, contributing over half of the year-over-year increase in operating EBITDA [3][14] - The company achieved a total operating EBITDA margin of nearly 30% for Q2 2025, approaching historical best levels despite a negative impact from the expiration of the alternative fuel tax credit [3][27] - Management confirmed an upward revision of non-GAAP free cash flow guidance for 2025 to between $2.8 billion and $2.9 billion, with a total of $1.29 billion in free cash flow delivered in the first half of 2025 [4][31] Financial Performance - Collection and disposal operating EBITDA margin improved by 60 basis points to 37.9% in Q2 2025, supported by strong landfill volumes and targeted asset investments [3][21] - The legacy business achieved a 130 basis point improvement in operating EBITDA margin, reaching 31.3% in Q2 2025 [7][27] - Free cash flow for the first half of 2025 was $1.29 billion, with capital expenditures totaling $1.56 billion [7][30] Operational Efficiency - The operating expense ratio set a record in Q2 2025, remaining below 60% of revenue due to technological integration and process discipline [3][22] - Turnover for drivers and technicians improved by 370 basis points to 18.8% in Q2 2025, indicating progress in workforce stability [3][24] - The company completed a regional solid waste acquisition in the Washington, D.C. area, with full-year acquisition spending expected to exceed $500 million [7][15] Sustainability and Growth - Recycling operating EBITDA grew by 17% in Q2 2025, despite a nearly 15% decline in recycled commodity prices [7][16] - 90% of 2025 renewable gas off-take is locked, with an average RIN price of $2.55 in Q2 2025, exceeding market expectations [7][62] - The integration of WM Healthcare Solutions is on track to achieve the upper end of the $80-$100 million synergy target for 2025, with a 190 basis point improvement in operating EBITDA margin since acquisition [7][18] Market Trends - Collection and disposal volume grew by 1.6% in Q2 2025, influenced by wildfire cleanup efforts, while the loss of a large franchise contract negatively impacted residential and commercial volumes [3][21] - The company maintains annual volume guidance, projecting full-year volume growth between 0.25% and 0.75% [3][32] - The strength of the sustainability platform continues to distinguish WM in the industry, aligning with key secular drivers of circularity and energy demand [7][16]

Core Insights - The article emphasizes the importance of resilience investing in the face of inflation and potential recession, focusing on companies with strong financial health and diversified income streams [1] Johnson & Johnson - Johnson & Johnson (JNJ) is highlighted as a defensive investment within the stable healthcare sector, with a diversified business model that includes Innovative Medicine and MedTech [2] - JNJ's financial health is reinforced by its AAA credit rating, shared only with Microsoft among US companies [2] - The company reported a revenue of $88.821 billion in 2024, a 4.3% increase from the previous year, with adjusted net earnings of $24.242 billion [3] - JNJ's Innovative Medicine segment saw a 5.7% operational growth in 2024, while the MedTech segment achieved 6.2% operational growth [4] - The stock forecast for JNJ indicates a current price of $162.94 with a 12-month target of $171.33, reflecting a potential upside of 5.15% [3][4] Microsoft - Microsoft (MSFT) demonstrates resilience through its transition to a recurring revenue model, primarily via cloud services, allowing it to navigate economic challenges effectively [5] - The company reported total revenue of $69.6 billion in Q2 2025, a 12% year-over-year increase, with cloud revenue reaching $40.9 billion, up 21% [6] - Microsoft's AI business has surpassed an annual revenue run rate of $13 billion, showing a remarkable 175% year-over-year growth [6] - The stock forecast for MSFT shows a current price of $388.56 with a 12-month target of $510.43, indicating a potential upside of 31.36% [6][7] Waste Management - Waste Management (WM) is presented as a resilient company due to the essential nature of its services, providing stable revenue regardless of economic conditions [8] - The company reported revenue of $22.063 billion in 2024, an 8.0% increase from the previous year, with adjusted operating EBITDA of $6.563 billion [9] - WM is projected to see revenue growth of 16.4% and adjusted operating EBITDA growth of 15.0% in 2025 [9] - The stock forecast for WM indicates a current price of $225.06 with a 12-month target of $236.65, reflecting a potential upside of 5.15% [9][10] Resilience Investing - The article concludes that resilience investing is not limited to a single industry, but rather focuses on identifying companies with strong financials, diversified revenue streams, and adaptability to market changes [11]

Company Overview - Casella Waste Systems has significantly outperformed major stocks like Tesla, Strategy, and Amazon, with a $10,000 investment in Casella now worth $269,000, reflecting a nearly 2,600% increase over the last 10 years [2][3] - The company operates in the waste management sector, providing residential and commercial garbage services across 10 states, primarily in the New England region [4] Financial Performance - In 2024, Casella generated $962 million in revenue from trash collection, marking a 35% year-over-year increase, with this segment accounting for 62% of total revenue [5] - The company has pursued a growth strategy through mergers and acquisitions, acquiring 29 companies for $1.4 billion over the past three years [10] Market Position and Strategy - Casella's business model is resilient to economic downturns, as garbage collection remains necessary regardless of economic conditions [7] - The company has a competitive advantage due to its limited number of landfills, which are valuable assets in its operational territory [8] Growth Potential - Future growth for Casella is expected to come from continued acquisitions and improvements in profitability through operational efficiencies [10][11] - The company signs long-term contracts in its service areas, providing a predictable revenue stream and potential for low-single-digit growth through price increases [9] Valuation Considerations - Currently, Casella's stock is trading at a slightly higher-than-normal valuation, and a 15% pullback could present a more attractive buying opportunity [12] - Market corrections often lead to stable companies like Casella being available at discounted prices, with historical pullbacks of around 20% during such events [13][14]