Discovering an Upgrade
New year new administration
January 5, 2025
I love credit cards because I love travel. Personally, the best combo I’ve found is the Amex Platinum for airport lounge access, Sapphire Reserve for first class upgrades, and Robinhood (HOOD) Gold for cash back. Professionally, I own Discover (DFS) shares. The company is getting bought by Capital One (COF). The buyer’s CEO is a family friend and neighbor who I’ve known and admired since before he founded the company. If the deal closes, DFS gets COF stock currently worth about $184 per share. The $8 and change net spread offers a 14% IRR between now and then if it closes by May. The deal will upgrade the target’s risk management so regulators should approve it (in fact they should insist on it). I own DFS; you might want to as well.
May 18, 2025
Capital One Completes Acquisition of Discover
Take the money and
run.