Texas Pacific Land Corporation is highlighted as part of a broader discussion on the value of land as a long-term investment. The manager emphasizes the unique nature of land as an asset class, noting its ability to compound value over time and its scarcity due to increasing global population. The discussion suggests that land can be repurposed for higher uses, which adds to its value proposition. The manager reflects on the historical context of land ownership and its appeal to long-term investors, indicating a favorable view of land investments, including Texas Pacific Land Corporation.

Texas Pacific Land Trust's (TPL) stock has continued to rise in 2026 (45%) after a difficult year in 2025 for all oil related stocks! This company remains very profitable and will continue enjoying royalties from its oil and water reservoirs in Texas. In addition, there is a high probability that data centers will be built on its land, an activity that may generate many million of additional profits per annum in the future. We have owned this stock for over a decade after learning about the company from the legendary investor Murrah Stahl (RIP) who died suddenly this year.

The clearer opportunity within the AI world today, in my view, remains in power. Every data centre still needs electricity, land and water, and the infrastructure connecting them can take years to permit and build. Recent developments in Texas reinforce this view, as directives require data centres to fund the electric infrastructure they need. This strengthens the case for owners of strategic land, like Texas Pacific Land Corporation, which is well-positioned to benefit from these trends.

Texas Pacific Land Corp. (TPL) was mentioned as a key detractor from performance. Shares rose early in the period following strong earnings results and the announcement of a partnership to develop AI data centers on company owned land.

Texas Pacific Land Corp is one of the largest private landowners in Texas, with approximately 870,000 acres of surface estate and 2.4 million acres of mineral interests, primarily in the Permian Basin. This land is a finite, irreplaceable asset that cannot be replicated. The company owns perpetual oil and gas royalty interests on hundreds of thousands of acres, generating high-margin revenue from energy production without the associated capital expenditures or operating risks of exploration and production companies.