Forget Warren Buffett Stocks. Check Out What Todd Boehly Is Up to With RDE, Inc. [OTC: RSTN] Instead

It’s that time of the quarterly cycle again — the time when the financial press pours over the alphanumeric soup of SEC disclosures and filings for the previous quarter.

Naturally, that means all eyes are on Warren Buffett’s 13F — the filing that tells us everything he’s been up to over the last quarter. And, according to the steady stream of articles that have been cropping up over the last couple of weeks, the answer to that is not much.

He sold a few things, like Apple [NASDAQ: AAPL] and Markel Group [NYSE: MKL].

And he bought even fewer things — Chevron [NYSE: CVX], Occidental Petroleum [NYSE: OXY], and Sirius XM Holdings [NASDAQ: SIRI], to be exact.

And that’s about it. All told, not a whole lot for the average investor looking for a solid growth stock to act on.

However, while Buffett might be the one who gets all the attention, he’s not the only game in town.

In fact, look in the right places, and you can often find something far more interesting than anything that Warren Buffett’s been up to.

And when I say “far more interesting”, I 100% mean that in the “you could make a lot of money here” way.

For example, take this 13G submitted by Todd Boehly of Eldridge Industries.

That filing reports an 11.8% (2,703,478 shares) holding in RDE, Inc. [OTC: RSTN].

Now, as for why this is even remotely interesting, stick around — that’s going to need some explaining.

But trust me, this will be more than worth your time.

Who Is Todd Boehly, and Why Do We Care About This 13G?

Depending on who you are and what you’re interested in, Todd Boehly is a name that you might already be familiar with. For those who aren’t already familiar with the name, here’s a quick introduction.

• Business interests/Investments: Boehly’s business interests span everything from commercial real estate and life insurance to Chuck E. Cheese, Bruce Springsteen (The Boss), and Premier League football team Chelsea F.C., where he is currently chairman. For the most part, he invests in these businesses through Eldridge Industries, which he founded in 2015, although he also operates through other groups, such as the BlueCo consortium which was behind the Chelsea F.C. takeover.
• Board Seats: Besides Eldridge Industries, Boehly serves as a board member for companies including Accelerant, Kennedy Wilson [NYSE: KW], PayActiv, Viral Nation, and Vivid Seats [NASDAQ: SEAT].

Now, clearly, this barely scratches the surface. But it is enough to tease out the two most important elements to explaining why Boehly’s 13G disclosing his position in RDE, Inc. [OTC: RSTN] is so interesting.

The two key points here are:

1. Eldridge Industries.
2. Boehly’s position at Vivid Seats [NASDAQ: SEAT].

As for why these points are important, let’s start with the easy one first — Eldridge Industries.

The Eldridge Industries element is interesting for the simple fact that, over the years, it has made countless bets on massively successful companies. This has led to the sort of performance that makes the returns from Buffett’s Berkshire Hathaway look like child’s play.

One semi-recent example is the $1.275 billion deal that saw Eldridge exit from Truebill, a personal finance app that it had invested in during its Series C and D funding rounds while it was still a startup. Eldridge has also made similar exits from companies like Dragontail Systems, Epic Games, and countless others.

Curiously enough, Eldridge Industries was also the brains and financial brawn (to the tune of $345 million) behind Vivid Seats’s 2021 Nasdaq listing. Here, Boehly led the formation of the SPAC (Horizon Acquisition Corp.) that combined with Vivid to take it out of private equity and onto the public markets.

Naturally, this leads us to our second point — Boehly’s ongoing involvement at Vivid.

However, the connection between Boehly, Vivid Seats [NASDAQ: SEAT], and RDE, Inc. [OTC: RSTN] is going to need a little more explaining.

But hold on just a little longer, because this is where the investment thesis gets really compelling.

It’s All Connected: Vivid Seats [NASDAQ: SEAT], Vegas.com, and RDE, Inc. [OTC: RSTN]

Last year, at about the same time Boehly acquired his large interest in RDE, Inc. [OTC: RSTN], we reported on another story that was linked to Boehly.

That story was the $240 million acquisition deal that saw Vivid Seats [NASDAQ: SEAT] take over Vegas.com.

For the full story on that deal, see here: Vivid Seats Acquires Vegas.com in $240M Transaction — Is Restaurant.com [RDE, Inc. | OTCQB: RSTN] Next in Line?

What made that deal so noteworthy was that it saw Vegas.com’s valuation 6x in just a few short years. We then hypothesized that a similar story was probably brewing with RDE, Inc. [OTC: RSTN].

Only, at the time, we weren’t paying attention to the Todd Boehly connection. In fact, he wasn’t even on our radar until we caught wind of his 11.8% interest in RDE, Inc. [OTC: RSTN] via his recent 13G.

Instead, what led us to our original conclusion was that there were simply too many stars aligned. Everything, from the core value propositions of the respective businesses, to the massive undervaluations. It was all present in both Vegas.com and RDE’s flagship brands CardCash.com and Restaurant.com.

Of course, our main thesis at the time — that RDE, Inc. [OTC: RSTN] was massively undervalued and due for a major correction — was just a theory. An exceptionally solid theory, if I can say so myself. But a theory nonetheless.

However, now that we’ve picked up on Boehly’s involvement with RDE, it’s probably time to modify the theory just a little.

We might have just gone from having “many stars aligned” to now having “the sun, the moon, and all the stars aligned”.

What Interest From Todd Boehly [Eldridge Industries] Means For RDE, Inc. [OTC: RSTN]

To cut a long story short, there are two possible explanations for what’s going on here.

1. Todd Boehly taking an 11.8% interest in RDE, Inc. [OTC: RSTN] is him further developing a similar investment thesis that led to the Vivid Seats [NASDAQ: SEAT] acquisition of Vegas.com. (Again, see our original Vegas.com acquisition article for what that thesis is).
2. We have no idea what we’re talking about, and Boehly’s up to something else entirely different.

Either way, when an investor like Todd Boehly takes an interest in something that was previously under the radar, it’s usually a sign of something big.

Much bigger than anything you’ll ever glean from a Warren Buffett/Berkshire Hathaway 13F.
And, if it just so happens that our first explanation is even close to the money, that “something big” could see RDE, Inc. [OTC: RSTN] attract a multiplication in its value similar to what Vegas.com did last year.

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(Featured image by Born2Invest)

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