TIVP011: NINTENDO (NTDOY): “SWITCHING” IT UP

W/ DANIEL MAHNCKE AND SHAWN O’MALLEY

16 March 2025

In today’s episode, Daniel Mahncke and Shawn O’Malley break down Nintendo (ticker: NTDOY), a global gaming powerhouse. With its legendary franchises, expanding digital services, and a growing presence beyond gaming, Nintendo is evolving into a broader entertainment empire. As the company focuses on building an everlasting ecosystem and shifting toward recurring revenue streams, it appears to be achieving greater financial stability while maintaining its reputation for innovation.

In this episode, you’ll learn why Nintendo is such a unique gaming and entertainment company, how it has built one of the most loyal fan bases in the industry, why its business model is evolving beyond traditional console cycles, what Nintendo can do to strengthen its long-term profitability, plus so much more!

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IN THIS EPISODE, YOU’LL LEARN:

  • How Nintendo evolved from a small playing card company into a global gaming powerhouse.
  • Why Nintendo differs from competitors like PlayStation and Xbox.
  • Why Nintendo’s consoles and games are unique in the industry.
  • How the introduction of online services has changed the gaming industry forever.
  • How Nintendo survived the Wii U failure and stepped up its game.
  • How Nintendo is turning its consoles into an everlasting gaming ecosystem.
  • How Nintendo is leveraging its IP to expand beyond gaming.
  • What is Nintendo’s intrinsic value per share?
  • Whether Shawn & Daniel add NTDOY to The Intrinsic Value Portfolio.
  • And much, much more!

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

 

[00:00:00] Shawn O’Malley: Hey guys, welcome to another episode of The Intrinsic Value Podcast. On today’s episode, Daniel and I will dive deep into the creative and financial powerhouse that is Nintendo. This is a company that has really defined many people’s childhoods, including my own. From Pokemon to Donkey Kong, Mario, Super Smash Brothers, Zelda, Kirby, and Animal Crossing, Nintendo has many beloved franchises as anybody, rivaled only by Disney. And those brand assets have been incredibly accretive to shareholder value, with Nintendo averaging 40 percent plus returns on capital over the last five years. We’ll break down how Nintendo transformed from a 19th century playing card company into a global gaming sensation, why it’s business model is on the brink of a huge shift.

[00:00:47] Shawn O’Malley: And whether it’s stock deserves a place in our intrinsic value portfolio. I’ll be joined by my new colleague, Daniel Mahncke, who recently joined The Investor’s Podcast Network. Daniel is an incredibly smart investor, and he’s going to present the case for Nintendo today. I’ll introduce him here shortly. So with that, let’s get right into it.

[00:01:10] Intro: You’re listening to The Intrinsic Value Podcast by The Investor’s Podcast Network. Since 2014, with over 180 million downloads, we’ve learned directly from the world’s best investors. Now, we’re applying those lessons to analyze businesses and investment opportunities every week. Helping you uncover intrinsic value. Now for your host, Shawn O’Malley and Daniel Mahncke.

[00:01:45] Shawn O’Malley: So before we get into today’s company, let me just quickly introduce my new colleague and co host Daniel Mahncke. Each week I’ve been hosting this podcast and building the intrinsic value portfolio solo, but I’m very glad to have Daniel joining me to help with the mission of transparently constructing a portfolio of high quality and attractively priced long term stocks.

[00:02:06] Shawn O’Malley: As part of that, I’ve covered a different business every week, trying to find compelling opportunities to invest in. And so far only Ulta, Airbnb and Alphabet have really moved the needle enough to earn a spot in the portfolio. But that’s enough on that. Daniel is here today to pitch his own idea for the portfolio, and I’ll just be providing him some feedback and questions for him.

[00:02:27] Shawn O’Malley: So welcome to the show, Daniel.

[00:02:29] Daniel Mahncke: Yeah. Thank you, Shawn. I mean, that was a very kind intro of you and you know, best. I’m excited to be back on the show. I’m following The Investor’s Podcast since about 2017 and it still feels kind of surreal being part of the team now and especially being part of this great show.

[00:02:44] Daniel Mahncke: I think with you done in the last couple of months and with this show is phenomenal and I would have liked to listen to a similar show back when I started out, but I do know that people do not want to hear me rave about the show, so I don’t want to waste too much time and quickly get into today’s pitch.

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