Oct 15, 2026 · 22 min
Bending Spoons tests the Baby Berkshire model
Is Berkshire Bending the Rules With Bending Spoons?
The episode weighs whether acquisition-driven digital efficiency can withstand valuation pressure, leverage, and rising risks across banks, industrials, and neoclouds.
- 1Bank of America absorbed a $1.2 billion anti-money-laundering penalty, but the hosts distinguish it from asset-cap restrictions.
- 2Fastenal shows strong industrial execution and disciplined finances, though its valuation near 40 times forward earnings demands caution.
- 3Bending Spoons offers a technology-oriented Berkshire comparison while neocloud leverage and chip depreciation expose investors to sharper downside.
Don't miss
The hosts connect CoreWeave’s debt burden and GPU depreciation assumptions to the possibility that many neocloud companies may not remain independent.
The brief
Matt Frankel explains Bank of America’s earnings miss and $1.2 billion anti-money-laundering penalty, distinguishing delayed reporting from the asset-cap cases at TD Bank and Wells Fargo.
John Quast makes the case for Fastenal’s industrial momentum, inventory discipline, low debt, and shareholder-friendly management, while cautioning that nearly 40 times forward earnings leaves little room for disappointment.
Bending Spoons emerges as the episode’s central idea: a selective buyer of neglected digital businesses that seeks recurring revenue, higher efficiency, and a technology-oriented version of Berkshire’s model.
TripAdvisor and Yelp surface as possible targets, but the broader argument is that founders may launch products better than they operate them at scale.
The mood shifts with CoreWeave’s falling shares and weak bonds, as leverage, AI-spending uncertainty, and GPU depreciation assumptions expose the fragile economics of neocloud companies.
What was said on this episode
20 statements · 11 positive · 8 negative · 1 neutral
Bank of America would have missed earnings even without the penalty
“even without that penalty, Bank of America still would have missed earnings”
Listen at 1:07
Bank of America investment banking fees fell 11%
“Investment banking fees were down 11%”
Listen at 1:13
Bank of America is unlikely to receive an asset cap absent criminal findings
“then I don't think an asset cap is very likely”
Listen at 3:12
Fastenal reported 15% growth in its latest quarter
“15% growth”
Listen at 4:19
Fastenal heavy-manufacturing revenue rose more than 20% year over year
“heavy manufacturing for Fastenal, that revenue source up more than 20% year over year”
Listen at 4:35
Fastenal valuation near 40 times forward earnings may be excessive
“right now trading at around 40 times forward earnings. That may... be a little bit too hot to handle”
Listen at 7:08
Bending Spoons acquires neglected digital businesses and improves efficiency and profitability
“They buy struggling or neglected digital businesses, and they try to make them more efficient and profitable.”
Listen at 8:47
Bending Spoons has completed more than 50 acquisitions
“It's completed more than 50 of these acquisitions so far.”
Listen at 9:11
Bending Spoons businesses generate a 53% adjusted EBITDA margin
“A 53% adjusted EBITDA margin”
Listen at 11:20
Bending Spoons receives 84% of revenue from recurring subscriptions
“84% of their revenue comes from recurring subscriptions.”
Listen at 11:26
Bending Spoons acquires roughly one out of every 400 companies it evaluates
“they only acquire a business, I mean, they only acquire about one four hundredths, one out of every four hundred companies they evaluate.”
Listen at 12:49
Bending Spoons could improve TripAdvisor and create substantial shareholder value
“I think that... Bending Spoons could go in, overhaul what needs to be overhauled, and actually turn this into a company that creates a lot of value for shareholders.”
Listen at 14:59
Yelp has significant untapped data-licensing potential
“Data licensing is a really untapped part of the business.”
Listen at 15:41
CoreWeave’s leverage makes it vulnerable to slower AI spending or recession
“CoreWeave is the most levered, which means that any cracks in the AI build out, you know, spending slows down, we get a recession, whatever the case may be. It makes it really susceptible to that.”
Listen at 18:40
Current credit stress extends beyond CoreWeave to AI-related debt
“it's not a CoreWeave-specific problem, it's a AI debt problem.”
Listen at 19:12
CoreWeave uses a six-year GPU depreciation schedule versus five years for Nebius
“CoreWeave at six years, Nebius at five years.”
Listen at 19:27
Faster GPU replacement would increase CoreWeave’s funding needs
“if it does need to replace its GPUs at a faster schedule, then it's going to need even more funding to be able to do that.”
Listen at 19:44
Applied Digital’s debt interest is approaching its annual revenue
“their interest on their debts approaching their entire annual revenue run rate”
Listen at 20:47
DigitalOcean reduced debt by nearly $400 million in the first half
“its debt levels, down nearly 400 million in the first half of the year.”
Listen at 21:11
DigitalOcean reported 29% revenue growth in its latest quarter
“29% growth in the most recent quarter.”
Listen at 21:25
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.