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the value of a business unless it's a highly levered uh very economically sensitive company is not particularly affected by the on you know uh by the event of a recession right if you own a the value of a stock right the value of an interest in a company it's the present value of the cash that business generates over its life and if it's a business that should exist forever well pick Hilton for example um we can expect that over you know in in past history there's been a recession every seven or eight years let's assume the future is the same and there's a recession every seven or eight years going forward it doesn't that's kind of factored into the value of the of the Enterprise the only reason why a recession creates is destroys value is you have a company that is highly levered and then if revenues decline you know their cash flow goes negative and they can't they can't support their debt and they go bankrupt right but if you own a very well capitalized business I I don't think a recession has a meaningful impact it might affect that Year's revenues and cash flow but that's just one line item and a long spreadsheet of cash flows that you discount if you will into the present that the we have a much larger number of un unpay I.E people who share passwords than we thought or than we've at least disclosed previously uh this is causing us to reassess our business model we're going to go to you know an advertis housing model um and while we have enormous confidence and a management team that's done a fantastic job over many many years uh it's a completely new approach to their business and I think it it for us it made the future difficult to predict in terms of the future you know what what's going to happen and we own we're very concentrated investor we put a large amount of capital in each commitment we want these to be things that we can predict with a high degree of confidence over a long period of time and Netflix became if you will unpredictable for us so we sold it we sold it around $225 a share No $275 a share um and uh actually don't remember precise exit price uh it's trading above the price we exited but that doesn't mean it it wasn't the right decision to exit for us an investor who owns 100 stocks is a place for Netflix an investor owns N9 or 10 in light of the uncertainty created by the changes and how they're going to approach their Market we felt it was not something that could fit into our portfolio in general we like to own things for the long term on dominoes we actually made a profitable investment over the course of the Year our original holding period intention was not a year but the world changed in a pretty dramatic way uh one got lot more difficult to get labor lot more difficult to find drivers uh much higher interest rate uh environment and the combination of those factors and the valuation that when we sold made it in our view uh just just a less attractive opportunity we' rather deploy the cash elsewhere so we put our capital in two places one we launched uh one of the more aggressive buyback programs out there uh we're buying in about a million and a half shares uh you know approaching about 34 of a percent of our shares outstanding every month that's a pretty aggressive program it's about 28% of the average shares outstanding we think that's the easiest investment that we can make right now one we're well capitalized um you know plenty of cash on hand uh two we're trading at as you know a 35% discount to n uh three our companies are trading at in our view deep discounts their intrinsic values you get the benefit of that double discount uh so we think that's been a good place uh to deploy Capital The Other Place we've been deploying capital is some of these sort of more opportunistic Hedges we're investing a relatively small you know maybe 1 two 2 and a half% of our capital in each of these various commitments together comprising at cost you know 5 or 6% of our Capital but Investments we can make 6X 8X 10x and sometimes more that seems a better use of capital for our marginal dollar than the next big Equity commitment uh and we've looked at and a couple of things have come closer to prices where we would own them um but stocks haven't really gotten cheap enough for us to take our last dollar and buy the next big commitment
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