TIP780: Top Stocks for 2026 w/ Shawn O'Malley, Daniel Mahncke, & Clay Finck - We Study Billionaires Recap

Podcast: We Study Billionaires

Published: 2026-01-02

Duration: 1 hr 33 min

Guests: Shawn O'Malley, Daniel Mahncke, Clay Finck

Summary

Shawn O'Malley, Daniel Mahncke, and Clay Finck discuss their top stock picks for 2026, each focusing on different companies with promising growth potentials. O'Malley advocates for Exor N.V. as a strategic investment vehicle, Mahncke highlights Mercado Libre's dominance in Latin America, and Finck explores Meta's ongoing innovations and growth strategies.

What Happened

Shawn O'Malley advocates for Exor N.V., a holding company with a significant stake in Ferrari. He points out that Exor trades at a 60% discount to its net asset value, making it an attractive investment. Exor has compounded its net asset value at 18% per annum since 2009, with Ferrari being a crucial anchor asset. O'Malley emphasizes the strategic role of Exor's CEO, John Elkann, who is deeply involved with Ferrari and Stellantis.

Daniel Mahncke highlights Mercado Libre as a standout in the Latin American e-commerce market, noting its 27 consecutive quarters of over 30% top-line revenue growth. Mercado Pago, its payment solution, has become a key growth driver, establishing a strong presence in regions lacking a PayPal equivalent. Mahncke underscores the company's strategic reinvestments to maintain its competitive edge, despite a decline in operating margins from over 30% to the low teens.

Clay Finck presents Meta as a company with robust growth potential, despite previous hesitations to invest. He notes Meta's recent revenue growth of over 25% and its significant investment in AI technology, expected to enhance advertising efficiency. Finck also points out Meta's acquisition of Instagram, which now generates nearly $100 billion in annual revenue, as a testament to its strategic foresight.

Ferrari's impressive financial performance, with 18% annual earnings growth and high returns on invested capital, is a key factor in Exor's appeal. O'Malley explains that 80% of Ferrari's sales are to repeat customers, allowing the company to increase prices without losing clientele. This stability contributes to Exor's overall portfolio strength.

Mercado Libre's hybrid logistics model combines owned infrastructure with partnerships, enabling efficient scaling across Latin America. Mahncke compares Mercado Libre favorably to Amazon, highlighting its potential in digital advertising and strong market positions in Brazil, Mexico, and Argentina. The company's stock-based compensation strategy minimizes shareholder dilution, further solidifying its financial health.

Meta's strategic focus includes reducing expenditure in its Reality Labs division by 30% while maximizing core business growth through increased app usage and engagement. Finck emphasizes the potential of WhatsApp to significantly contribute to Meta's earnings in the coming years. Meta's adjusted PE ratio aligns with the broader market, positioning it as a stable investment option.

Exor's conservative balance sheet, with fixed low-rate debt and an A- credit rating, underscores its financial prudence. O'Malley warns of the potential risks if Exor reallocates its Ferrari stake into lower-quality investments, yet the current valuation offers substantial potential returns. Exor's transparent financial reporting further enhances its investment appeal.

Mercado Libre's strategic positioning in a rapidly growing e-commerce market positions it uniquely for sustained growth. Mahncke notes the company's high risk-adjusted margins in its financial services arm, Mercado Pago, which supports its competitive advantage. The company's focus on digital advertising and market expansion continues to drive its growth narrative.

Key Insights