Today we are breaking down the publicly traded investment company 3i. You may think if you've seen one publicly traded investment vehicle, you've seen them all. Yet, 3i is an investment vehicle where one business, Dutch retailer, Action, represents well north of 50% of their net asset value.  Our guest to break down 3i is Luke Bridgeman, a partner and portfolio manager at Hosking Partners. Luke shares the unique origin story of 3i, which dates back to pre-World War II in England. He takes us up through the present day, where longtime investment banker Simon Burrows has taken 3i and completely reshaped the asset management business into something that looks completely different.   Please enjoy this breakdown of 3i.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. --- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at https://public.com/businessbreakdowns. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:25) The Origin Story of 3i (00:06:30) 3i's Evolution and Strategic Shifts (00:07:12) The Impact of the 2008 Financial Crisis (00:08:20) Simon Burrows' Leadership and Strategic Changes (00:14:25) Focus on Action: 3i's Key Investment (00:25:23) 3i's Investment Strategy and Future Prospects (00:29:41) Valuation and Market Position of 3i (00:34:27) Key Risks and Management Insights (00:37:16) Lessons Learned from Breaking Down 3i

This is Matt Reustle. We're coming up on 200 episodes of Business Breakdowns, and one of the best things about hosting this show is that while each episode brings something completely different, you start to see the connective tissue that ties businesses together. We're often asked, "What's your favorite episode?" I certainly have favorites, but there are ideas that emerge from episodes that really stand out to me. In this episode, you'll hear several audio clips from past Breakdowns that we think stand out, and we'll share some of the context around them, why we think they're interesting, and bring the ideas to life. Please enjoy this mash-up of Business Breakdowns.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. — This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:02:53) Analyzing End Markets (00:04:58) L’Oreal Breakdown: Low Barriers to Entry, High Barriers to Scale (00:10:08) AMETEK: Small, Low Growth Markets (00:14:06) Vulcan Materials: Geographic Nuance (00:16:47) ASML: Technological Collaboration (00:21:05) Dolby: The Power of Patents

This is Zack Fuss. Today, we are breaking down the U.S. Marina Industry. In the U.S. there are more than 11,000 marinas, grossing over $6 billion in sales.  Today, there is a 12 to 1 ratio of registered boats versus the supply of rentable wet slips and dry storage spaces. Zoning regulations lead to limited supply growth, which has led to a sustained backdrop of strong, profitable growth for the industry.  To break down the industry, I am joined by David Chesner, co-CEO of Grove Point Marinas, and Josh Koplewicz, managing partner of Thayer Street Partners. We discuss how Marinas are currently evolving from a largely local and independent model to one that is institutionalizing as an asset class and lowering the industry's cost of capital, helping to finance growth. And, to illustrate the unit economics, we cover the largest players in the space, including publicly traded Sun Communities’ Safe Harbor Marina business. Please enjoy this breakdown of the Marina Industry.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Follow us on Twitter: @JoinColossus | @ReustleMatt | @domcooke | @zbfuss  Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:05:21) Overview of the Marina Industry (00:08:00) Revenue and Margins in the Marina Business (00:10:36) Operational Improvements and Best Practices (00:12:54) Challenges in Marina Development (00:14:10) Competitive Landscape and Market Players (00:27:02) Growth Strategies and Financial Insights (00:34:28) Risks and Resilience in the Marina Industry (00:39:08) Lessons Learned from the Marina Industry

This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down Vanguard. Vanguard and its founder, Jack Bogle, have ushered in an era of low-cost investment, which has left its mark on the entire industry. Today, the business commands $7.5 trillion of assets under management and owns approximately 8.5% of any given public company in the US. To break down Vanguard, I’m joined by Eric Balchunas, a senior ETF analyst at Bloomberg and author of The Bogle Effect. We explore the firm’s unique ownership structure, which in large part enabled its success, look at the potential for regulation to slow Vanguard down, and assess the unique figure that founded the business, Jack Bogle. Please enjoy this breakdown of Vanguard.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:24] - [First question] - The size and scale of Vanguard as it exists today  [00:05:45] - Some of the secular forces that has allowed Vanguard to capture so much of the market [00:09:04] - How Vanguard generates revenue and thoughts on its ownership structure [00:12:36] - What the fee structure would look like as an investor buying an ETF versus a fund [00:15:10] - The key differences of investing in a Vanguard ETF compared to a mutual fund  [00:18:20] - Market share of the key players and the industry landscape [00:21:24] - How big of a player ARK is in relation to how much media coverage they get [00:22:33] - Jack Bogle’s history, his thesis on mutual funds, and starting Vanguard  [00:28:07] - What it was like transitioning to new leadership given Jack’s fans and supporters  [00:32:10] - The thing that allows Vanguard to attract more funds despite their competitors  [00:35:58] - Complimentary services their competitors are offering that Vanguard is considering to capture more market share [00:42:59] - Potential regulatory risk that could pose a threat to Vanguard’s growth  [00:47:27] - How Vanguard has managed to avoid headlines unlike Blackrock [00:48:56] - The lessons for investors and builders when studying Vanguard’s story  

This is Matt Reustle and today we are breaking down the home improvement giant, The Home Depot. In the US, The Home Depot is a key ingredient to a nice little Saturday but beyond the power tools and building supplies is an excellent story of business execution. Why has Home Depot been such a strong performer following a housing crash in the e-commerce revolution? I’m joined by Sean Stannard-Stockton of Ensemble Capital to break that down. We cover how Home Depot transitioned their approach to business, from customer focus to capital allocation, and while Home Depot has reported strong earnings growth over the past decade, and beyond that, this isn't a simple story about a growing footprint. Please enjoy this breakdown of The Home Depot.   Don’t miss our first written Breakdown. David Kim from scuttleblurb joined us to break down the best in class trucking business, Old Dominion Freight Line. You can read the interview here.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:10] - [First question] - What the customer strategy is for Home Depot and how it differs from Lowe’s [00:05:28] - How the sales process works for a pro versus a DIY builder  [00:07:38] - The size of the addressable market and how much of it Home Depot controls [00:08:47] - Home Depot’s history and its role in developing and growing their industry  [00:11:39] - When Home Depot was founded and their original go-to-market strategy  [00:13:38] - What drove their decision to stop expanding stores and honing their offering [00:14:56] - Their revenue model and growth over time and the correlation between revenue and the housing market  [00:18:10] - How much revenue growth can be traced to in-store traffic and what’s driving it [00:21:55] - Overview of their economic model as a whole [00:23:42] - Their earnings profile and overall leverage compared to Lowe’s  [00:24:54] - How they position themselves for more of their business to be done online and thoughts on their CAPEX budget [00:27:56] - Who Home Depot purchases from and how they navigated the pandemic [00:37:09] - Thoughts about Home Depot’s growth over the next three to five years [00:41:40] - How much historically there has been a growth lag after bubbles and crashes  [00:44:12] - Whether or not new home purchases and refinancing during the pandemic might impact Home Depot’s trajectory [00:47:27] - Thoughts on Amazon potentially becoming a competitive threat [00:49:37] - Other risks that are top of mind when thinking about Home Depot’s future [00:53:51] - Lessons for investors and builders when studying Home Depot’s story

This is Jesse Pujji and today we’re breaking down Cameo, a video-sharing marketplace where you can buy personalized videos from your favorite celebrities. Cameo was founded in 2016 and reached unicorn status last year after producing millions of messages since its founding. To breakdown Cameo, I'm joined by the company’s CEO and Founder, Steven Galanis. In this breakdown, we discuss the unusual origin story of the business, how they manage the two-sided marketplace, and discovering a scalable pricing model. Please enjoy this business breakdown of Cameo. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:51] - [First question] - What Cameo is and their size and scale today [00:03:51] - An overview of Cameo’s value proposition for creators and customers [00:05:28] - The most common events tied to someone wanting a Cameo   [00:07:15] - Case study of a creator making Cameo a meaningful income source [00:09:10] - The early inspiration for the idea that eventually became Cameo   [00:11:46] - Biggest differences between Cameo today and its original form   [00:13:26] - What the competitive landscape looks like today in this space [00:14:51] - How they compete and what makes them defensible  [00:16:44] - The potential market size for this type of business and the supply side [00:19:01] - Describing their business model from a high viewpoint   [00:21:55] - Managing the supply side and the metrics used to do so  [00:24:15] - Important data points to consider for customer acquisition [00:27:09] - Interesting supply and demand dynamics that drive each other [00:29:01] - Thoughts about customer retention and expanding Cameo’s use cases [00:30:35] - Important sub drivers of pricing and how it affects the business and demand [00:34:43] - How the B2B side of the business has evolved and its overall potential [00:37:41] - Growth levers inside the core marketplace and new initiatives  [00:39:08] - Overview of overhead, costs, and their revenue model  [00:40:29] - The Represent acquisition and philosophy of M&A [00:43:28] - A tendency to have legends who’ve retired joining the platform [00:44:56] - What would contribute to an explosive future for Cameo’s trajectory in ten years [00:47:18] - The biggest potential risks to Cameo as a business [00:48:40] - Thoughts about brand in terms of building Cameo’s industry presence    [00:50:04] - Competing with OnlyFans and how brand plays a role in that  [00:51:46] - Lessons for builders and investors when studying Cameo’s story   [00:54:42] - Where to go to learn more about Cameo and talent marketplaces 

This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down Archaea Energy. Archaea is one of the largest and fastest growing providers of renewable natural gas in the US. The company uses methane produced by landfills as its feedstock to create renewable electricity and natural gas. To break down Archaea, I’m joined by Chadd Garcia. Chadd is lead portfolio manager of the Ave Maria Focused Fund and co-portfolio manager of the Ave Maria Growth Fund. You may have seen Archaea in the news this week. On Monday morning, BP announced a deal to buy Archaea for $4.1 billion US. We recorded on Friday before this news broke. The bulk of our discussion, therefore, does not touch on BP. It serves as an explanation for what BP has bought and why they found it to be an attractive asset. At the end of our conversation, we asked Chadd for his quick reaction to the news. Please enjoy this business breakdown of Archaea Energy.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:59] - [First question] - Defining landfill gas and its historic and current state [00:05:50] - What Archaea is, their business scale, and economic profile [00:07:44] - The waste hauling value chain and how money is made in the ecosystem  [00:11:33] - How Archaea takes something that’s perceived to be worthless and profits from it [00:15:47] - The way the company is organized to capture and capitalize on this opportunity set [00:17:56] - How much visibility they have into their future earnings [00:19:04] - The renewable fuel standard and how revenue is derived from it  [00:20:10] - Explaining how you produce renewable natural gas from a landfill [00:24:52] - The unit economics of a single Archaea landfill to gas site  [00:25:40] - How much capital can be deployed into one of their projects [00:26:45] - What differentiates and makes Archaea defensible from private equity companies  [00:27:51] - The history of the company, how it was founded, and its major players [00:29:57] - Thoughts about the size of the untapped opportunity in this sector [00:31:57] - Where is Europe in doing something comparable to this  [00:32:59] - Free cash flow conversion and financing requirements [00:34:18] - The current state of the competitive landscape    [00:37:37] - The key risks for a business like Archaea [00:40:30] - Lessons learned from studying Archaea from an investor’s and operator’s perspective [00:43:02] - His reaction to the news of Archaea being purchased 

Today’s Breakdown is a little different. For one, I’m Ali Hamed, an investor at Crossbeam and CoVenture, and I’ll be your host. Secondly, in this conversation, we are studying a private company that you’re unlikely to have heard of. That business is Spotter, and they play a fascinating role in the flourishing creator economy. Specifically, they provide capital and knowledge to a number of the world’s most influential creators, including Mr Beast. So in the process of discussing Spotter, we will also dive into the inner workings of YouTube and their creator platform. To break down Spotter, I’m joined by their CEO, Aaron DeBevoise. Aaron has spent his career at the intersection of entrepreneurship, investing, and digital content. I’ve worked with Aaron for a number of years and learned a ton about this ecosystem from him. Please enjoy this Business Breakdown of Spotter.    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:52] - [First question] - How the YouTube ecosystem became what it is today [00:05:52] - The transition from mobile to professional television quality content [00:08:58] - How advertising on YouTube works and generates revenue for its creators  [00:11:47] - The moment YouTube had to differentiate themselves from Google’s ad auction [00:13:20] - How the pandemic has accelerated the pace of their ad revenue  [00:16:19] - Why YouTube nailed monetization in a way that other platforms haven’t  [00:18:53] - His background and how he came to learn so much about YouTube [00:22:57] - Capital deployed and projects financed so far in the YouTube ecosystem [00:25:13] - Overview of the main ways to fund a YouTube creator  [00:27:30] - Thoughts on pricing and his risk reward perspective [00:30:49] - The breadth of uses for proceeds when creators invest in their brands [00:36:42] - What ad optimization and asset management means in this asset class [00:38:48] - The order of magnitude people are willing to pay for premium content [00:40:06] - Where the barriers to entry are that make Spotter so defensible [00:45:06] - The future of YouTube in the next five to ten years [00:47:03] - Something he used to believe about YouTube that has changed 

This is Zack Fuss, an investor at Irenic Capital, and today we are breaking down Intuit. Started by a former Procter & Gamble employee in 1983, Intuit has grown into the premier platform for consumers and small businesses to manage their finances and pay taxes. Along the way, it has fought off significant competition from the likes of Microsoft and others, and delivered handsome returns for its shareholders. In recent years, it has spent over $10 billion adding Credit Karma and Mailchimp to its platform of services. To break down this $100 billion market cap business, I’m joined by John Feeley, Deputy CIO and a Portfolio Manager at Findlay Park. Please enjoy this Business Breakdown of Intuit.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:19] - [First question] - What Intuit does and their various offerings [00:04:14] - The size and scope of their business lines and customer bases [00:06:20] - Power to the People; How Intuit was founded  [00:09:47] - Evolving from Quicken to the core franchise of small business accounting and consumer tax   [00:13:30] - The value proposition of their products and their economic models  [00:17:43] - Whether or not Intuit’s offerings have a network effect similar to Microsoft Office [00:21:56] - The barrier to entry for competition and what makes them so defensible  [00:26:04] - High level overview of the financials of the business [00:30:22] - The competitive advantage of their culture and managerial style  [00:34:49] - Capital allocation historically for the company  [00:37:09] - The commercial imperative to acquire Credit Karma and Mail Chimp [00:40:18] - Why acquire Mail Chimp given how different it is from their existing offerings [00:43:06] - Potential risks for Intuit given the stride towards tax simplification   [00:45:31] - The key drivers of their growth beyond their expected GDP percentage  [00:49:45] - Lessons for investors and builders to take away from Intuit

This is Zack Fuss, an investor at Irenic Capital and today we are breaking down Trader Joe’s. Trader Joe’s is not a typical grocery chain. Their stores offer less choice, very few brands, constantly changing product lines, and no online option. Yet, they are adored and highly profitable. Their NPS score is industry leading and from what we can tell, despite offering lower prices, they generate more revenue per square foot than any dedicated grocery in the market.   To break down Trader Joe’s, I’m joined by Cristina Berta Jones, a long-time ecommerce and grocery investor who is now building an online supermarket business called Picnic. Together, we unpack the elements that have made this private grocery chain so successful for such a long period of time. Please enjoy this business breakdown of Trader Joe’s.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:16] - [First question] - Comparing and contrasting Trader Joe’s to conventional grocery stores and supermarkets [00:06:05] - Where Trade Joe’s fits into the food retail market and their size and scale [00:09:36] - The different sections of a store layout and what it feels like to shop there [00:11:47] - How many stores there are and how that compares to other large scale food retailers [00:13:17] - Some of the most interesting parts of the history of Trader Joe’s [00:15:15] - How Joe applied his market observations to building the company  [00:21:12] - The evolution and success of Trader Joe’s private label brand [00:24:31] - Differences between US and European grocery markets and overview of what a hard discounter is  [00:28:25] - Unique and different strategies on slotting fees and trade spend [00:31:23] - Reinvesting their overhead savings to offer lower prices to their customers [00:33:04] - Success despite not being a store where one does a full basket shop [00:34:08] - The way that the pandemic and delivery services impact grocery stores  [00:37:17] - The crossroads many grocers face between physical and online stores [00:41:43] - What makes Trader Joe’s defensible  [00:44:51] - Trader Joe’s approach to shrinkage and having better margins than their peers [00:47:05] - Self-distribution and what separates them from their competitors  [00:48:30] - Lessons for builders and investors from Trader Joe’s story   

Today we are breaking down Polaroid. For 30 years, Polaroid monopolized the instant photography industry, producing one Nobel-caliber breakthrough after another. As their products dazzled, sales grew from just under $1.5 million in 1948 to $1.4 billion in 1978. Today, the business is a shadow of its former self but the lessons from its history and especially from the founder endure. Edwin Land is not the most familiar name in business history, but he has had an outsized influence on the world in which we live. In particular, he was Steve Jobs’s hero. To break down Polaroid, I’m joined by David Senra, who studies history’s greatest entrepreneurs through his Founders podcast. David is uniquely qualified to distill the lessons and secrets behind Edwin Land and his life’s work, Polaroid.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:04] - [First question] - How unique Edwin Land was [00:08:58] - What he was like and how he solved the problem that lead to Polaroid [00:13:20] - Defining what a polarizer is at a high level [00:16:36] - How scope of ambition can overcome humble beginnings [00:18:59] - The story of the instant camera and how much of a leap forward it was   [00:26:11] - Revealing the Instant Camera; The marketing side of Polaroid beyond the initial magic Land created [00:31:40] - Why they were so successful in building a four decade moat around their patent [00:34:59] - Living in the space of the important and the impossible  [00:38:50] - Optimism as a moral duty that we can take away from Land [00:42:59] - Lessons from the aftermath of Polaroid after Land’s death  [00:48:02] - What the story of Polaroid most represents that is useful for entrepreneurs [00:49:52] - A Triumph of Genius

This is Matt Reustle and today we are breaking down the historic General Electric. Honestly, approaching this episode was a unique challenge. Today’s GE barely resembles what was once the largest company in the world. So rather than purely focus on what’s remaining, we decided to use a lens of “then versus now”. To break down General Electric I am joined by Josh Aguilar, a GE Analyst at Morningstar and enthusiast on all things capital allocation. It’s a theme we revisit throughout the conversation on GE's time as a conglomerate, and its rise and fall. If you’d like to hear more on the early years of General Electric and particularly Thomas Edison – make sure to check out our newest Colossus teammate David Senra and his podcast Founders. David conveniently dropped a new episode on Edison this week, and after my conversation, you’ll hear a preview of that episode. So stay tuned for that, after my conversation with Josh. Please enjoy this breakdown of General Electric.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:04:05] - [First question] - What GE looks like today compared to its peak [00:07:42] - The reasons why GE lost so much of its power [00:15:14] - How much of their success can be attributed to being propped up by leverage   [00:17:18] - The strategy they’re operating with today and the businesses within GE [00:24:05] - Drivers in the decision to split up their business and end the conglomerate era [00:25:34] - Would they have made disposals if they were operating from a strong position  [00:27:15] - What their capital allocation and free cash flow will look like going forward [00:29:38] - GE’s centralized thought process of the past and their management style now [00:31:14] - Exxon Mobil: An Aging Energy Empire [00:32:23] - Driving factors behind their decision to transition towards green energy [00:34:36] - How the margin profile plays out and competitive dynamics of renewables [00:35:16] - Thoughts about conglomerates and what will work in the future  [00:37:07] - What could lead to GE’s success in the future over the coming years [00:39:43] - Main takeaways from his analysis of GE [00:43:52] - Clip from Founders about GE’s founder, Thomas Edison

Today, we’re breaking down a global semiconductor company known as AMD. AMD isn’t the biggest and hasn’t always been the best chip maker in the world. But as cyclical and structural changes take place in the semiconductor industry, AMD serves as a great proxy for what’s going on and why. To break down the details, both behind the company and the industry, I’m joined by Jay Goldberg, a semiconductor industry consultant at D2D Advisory and Partner at Snowcloud Capital. We explore the rise of custom silicon, AMD’s competition with Intel and Nvidia, and whether or not chip making is a good business at all. Please enjoy this breakdown of AMD.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:27] - [First question] - Where to start when it comes to understanding semiconductors  [00:04:21] - Why semiconductors were created in the first place   [00:04:57] - Key milestones and players in the semiconductor industry  [00:07:35] - What are the factors that determine who wins and loses [00:08:37] - The semiconductor industry map today writ large [00:12:05] - How the changing geopolitical landscape affects power in this sector  [00:14:15] - Why we can’t just throw unlimited money at this problem to solve it  [00:15:30] - Whether or not chip businesses are actually defensible and good businesses [00:17:37] - Differences between CPUs and GPUs and how everything we do uses them [00:22:56] - AMD’s history with CPUs and GPUs and how they’ve evolved over time [00:26:55] - Why there is such a high barrier to enter and disrupt the chip design market [00:31:54] - A future where we transition to specific and specialized use-case chips  [00:35:36] - Companies like Google and Apple building their own in-house chips [00:38:55] - Other industries where this dynamic exists outside of semiconductors [00:41:57] - The scope and economics of AMD today  [00:44:26] - What’s important to know about AMD and Intel’s capital allocation strategies [00:47:28] - What he’d focus on if he was the capital allocator for a big chip company [00:48:55] - One major lesson that this industry has taught him about investing [00:50:28] - Major lessons about AMD and the world writ large that isn’t addressed yet

Today, we are breaking down the South Korean e-commerce giant Coupang. If we ran through the taxonomy of investor interests, this Coupang conversation checks many boxes on that list. It is a founder-owned and operated business, a business that went through a massive pivot years into existence, a business that's replicating the Amazon model to success, and a business with healthy debates on the TAM & financial trajectory going forward. Our guest today is Drew Cohen from Speedwell Research. We want Business Breakdowns to be the most efficient way for you to learn about a company, so we pack that information as densely as possible into about an hour of each episode, but if you are itching for more on Coupang, check out Drew's full report at speedwellresearch.com. Please enjoy this Breakdown of Coupang. Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Follow us on Twitter: @JoinColossus | @ReustleMatt | @domcooke | @zbfuss  Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:52) An Overview of Coupang (00:07:49) Coupang's Founder Story (00:10:46) The Pivot to Amazon Model (00:13:49) Coupang's Logistics and Delivery Innovations (00:17:32) Coupang's Market Position and Competition (00:25:24) Consumer Behavior and Market Dynamics (00:34:15) Understanding Gross Margins and GMV (00:36:48) Operating Leverage and Logistics Infrastructure (00:38:06) Future Growth and Market Expansion (00:41:30) Advertising and Brand Dynamics (00:48:59) Competitive Landscape and Risks (00:56:12) Valuation and Market Perception (00:59:15) Key Lessons from Coupang's Success

This is Jesse Pujji and today we are breaking down CrowdStrike, the cybersecurity provider. Founded in 2011 by George Kurtz, the former CTO of McAfee, CrowdStrike differentiated from firewalls and anti-malware by building a platform that actively predicts threats rather than blocking attacks that have happened before. Today, CrowdStrike serves over 18,000 customers globally and is valued at $45 billion.   To break down CrowdStrike, I’m joined by Roneal Desai, a senior public market investor focused on enterprise software. In our conversation, we discuss how CrowdStrike reinvented cybersecurity for the cloud era, why the pandemic and remote work drove a paradigm shift in the industry, and how the company helped the DNC identify Russian hackers during the 2016 election. Please enjoy this breakdown of CrowdStrike.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:29] - [First question] - Overview of what CrowdStrike is [00:05:28] - The size and scale of CrowdStrike today  [00:07:10] - Customer use-cases before and after CrowdStrike [00:08:45] - What software would have been used prior to CrowdStrike  [00:12:17] - How many customers could there be and who CrowdStrike is taking share from [00:16:41] - What their prior estimates lacked in terms of TAM  [00:17:17] - Whether or not Palo Alto Networks is a true competitor [00:19:33] - The criteria used for deciding which service is better than the other  [00:21:16] - The early days and founding story of CrowdStrike and their structural advantages [00:27:30] - What about COVID opened up an opportunity for CrowdStrike’s growth [00:29:44] - The P&L and the special parts of the business that show up there [00:34:21] - Strategic acquisitions and product expansion [00:39:21] - What’s behind their distinctive growth  [00:40:54] - Other noteworthy aspects of their gross margin and R&D  [00:44:17] - Distinctive aspects of their sales and marketing strategy  [00:50:00] - What their unit economics looks like today [00:52:35] - Key factors that would contribute to the bull case for CrowdStrike in ten years  [00:54:14] - Why a security company would become the integrated layer   [00:55:47] - Biggest risks and threats to CrowdStrike over the next decade   [00:57:41] - Lessons for builders and entrepreneurs   [00:59:05] - Lessons for investors [01:00:09] - Where to go to learn more about CrowdStrike

This is Matt Reustle and today we are breaking down the Swedish industrial giant, Atlas Copco. With a market cap hovering around $50 billion US dollars, Atlas Copco is a dominant player in the air compressor and vacuum pump markets. It has returned 40x over the past 20 years for its shareholders and to break down the business I’m joined by Stephen Paice, Head of European equities at Baillie Gifford. Baillie Gifford has owned this business for 4 decades and Stephen still has the handwritten research notes from the mid-80s so we thought it was a proper fit.    We cover the rich corporate history, including how one family - the Wallenbergs (also referred to as the Swedish Rockefellers) - have played such a major role in the history, we get an overview of pneumatic energy and the importance of the air compressor market, and we explore what makes this corporate culture so noteworthy to both insiders and outsiders. Please enjoy this breakdown of Atlas Copco.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:12] - [First question] - What makes Atlas Copco such an interesting business  [00:03:52] - What they’re selling and who they’re typically selling to  [00:06:02] - Whether or not there are alternatives to air compressors [00:07:03] - What a vacuum pump is and how their industrial vacuum business works [00:08:55] - Metrics used to measure how Atlas Copco is a market leader  [00:10:25] - Some of the key milestones of their corporate history leading up to today [00:17:51] - How much the Wallenberg family owns of Atlas Copco today [00:18:48] - Walking through the income statement [00:21:47] - Service regularity and overview of revenue generated through service  [00:25:35] - Cost profile of the business and how their supply chain works [00:30:19] - Anything unique that contributes to their 6-7% revenue growth [00:31:55] - What the consolidated business margin works out to [00:33:23] - TransDigm; Being able to allocate 30-40% of free cash flow towards acquisitions in a fragmented market [00:35:16] - What the bull case for Atlas Copco is [00:39:46] - A metric he typically uses when thinking about these types of businesses  [00:40:47] - The most interesting and surprising takeaways from Atlas Copco

This is Jesse Pujji and today we’re breaking down ChargePoint. ChargePoint is the clear market leader in the United States for electric vehicle chargers. Founded in 2007 by five technical founders, the business has ridden the wave of EV growth and has manufactured some 40% of charging points in the US.    To break down ChargePoint, I’m joined by Mark Tomasovic, a principal at Energize Ventures and a previous guest on our show. We discuss the challenges of a commoditized business, how ChargePoint is leading the EV land grab, and why the US is at a particularly interesting point for EV adoption. Please enjoy this business breakdown of ChargePoint.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:02:16] - [First question] - What ChargePoint is [00:03:26] - Their size, scale and revenue today [00:04:21] - The history of ChargePoint and the EV charging sector  [00:06:25] - How the industry has evolved and important metrics to understand  [00:08:18] - Who the main players are in the EV charging infrastructure layer [00:10:46] - The role auto manufactures play and their relationship with this world [00:12:05] - Tesla’s closed wall network and ChargePoint’s open network [00:13:05] - Competitive advantages in the EV charging landscape [00:15:45] - Whether or not sales and marketing is unique to ChargePoint  [00:16:47] - Other unique arrangements that will unlock the pace of their land grab [00:18:37] - The various lines of P&L and how to think about them [00:19:34] - The three levels of chargers and costs associated with them  [00:21:52] - What goes into their gross profit margins and cost of revenue  [00:22:50] - How their gross margin compares to their competitors [00:23:41] - What they’re trying to accomplish with their high R&D spend [00:24:49] - What they’re investing in and betting on for the future by spending cash [00:25:38] - Expectations of future growth for the next couple of years [00:26:46] - Growth over the long-term trajectory and the car to charger ratio [00:29:14] - Their main flywheels that give them a competitive advantage  [00:30:53] - The big buckets of customer segments and end point leverage [00:32:09] - What the life expectancy of a charger is [00:33:13] - The regulatory environment writ large  [00:34:39] - Bull case for ChargePoint over the next five to ten years  [00:37:36] - Reasons why ChargePoint might not succeed over the next five to ten years  [00:38:58] - Lessons for builders and investors when studying ChargePoint  [00:39:51] - Learn more about ChargePoint; energize.vc

This is Dom Cooke and today we are breaking down the freight railroad business, Union Pacific. Union Pacific is interesting for a number of reasons. Its first tracks were laid in a time of horsepower, over 150 years ago. It operates a duopoly in the West of the US with Burlington Northern Santa Fe, a rail owned by Berkshire Hathaway. And despite being capital intensive, it earns higher operating margins than Microsoft. But above all, it is a crucial link in the global supply chain, moving much of what the US economy is built on.    To break down this $140 billion railroad operator, I’m joined by Matt Reustle, the CEO of Colossus and a former transport analyst. Please enjoy this Business Breakdown of Union Pacific Railroad Company.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:01] - [First question] - A general overview of the transportation sector [00:05:38] - What a Class 1 railway is and what the railway industry looks like [00:07:40] - Is there cartel-like behavior and collusion between railway companies? [00:12:24] - What a rail network consists of at the unit and asset level [00:17:48] - Whether or not consumer railroads are independent from freight railroads  [00:18:57] - Interchange when goods are transferred from the east coast to the west coast  [00:20:17] - Who Union Pacific’s customers are, what they move, and their business writ large  [00:25:35] - The Box; Whether or not all transport volume in 50 years will be intermodal [00:26:37] - How they determine the rate they charge customers   [00:28:41] - Ways that geography impacts what is being transported  [00:31:28] - The income statement and economics of rails through the lens of UNP [00:36:11] - Improving efficiency and ROI while not having to submit to customers  [00:40:12] - How different policies affect railway margin profiles  [00:41:56] - Operating ratios and why they’re the metric most referenced for performance [00:44:38] - The nature of cyclicality and its driving forces  [00:48:15] - Thoughts about capital allocation given being high CapEx and their free cash flow [00:52:27] - How inflation and current events lately positively and negatively affect UNP [00:54:16] - What would make him nervous as an analyst looking at UNP in the years ahead [00:56:33] - Talk or plans to electrify and migrate away from fossil fuels  [00:58:22] - Lessons learned from UNP that could be applied to other industries and investing

This is Zack Fuss, an investor at Irenic Capital Management. Today we’re breaking down the world’s largest luxury business, LVMH. The LVMH story is deeply reflective of the vision of its 73 year-old founder and architect, Bernard Arnault. Today, the business generates €75 billion in sales across its 75 brands and 3 sector focuses. With a market cap of €350 billion, LVMH is not only the largest luxury business in the world but one of the largest businesses in the entire world.    To break down LVMH, I’m joined by Christian Billinger, the chairman of Billinger Förvaltnings. We discuss the paradox between scarcity and scale in the luxury industry, analyze some of the company’s high profile acquisitions, and delve into the history of this conglomerate’s famous founder. Please enjoy this breakdown of LVMH.     For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:30] - [First question] - How LVMH came to be and Bernard Arnault’s history [00:08:56] - Spread of revenue and margins across their various brands [00:13:38] - What it is about their business that has allowed them to achieve such tremendous scale given the scarcity of luxury goods [00:16:06] - Examples of Arnault reinvesting in the business for the long-term [00:17:04] - Ways all of their brands and different verticals work together to create value [00:18:56] - What the general view on success is after Arnault steps down  [00:21:19] - Key factors that allow luxury houses to enjoy handsome returns on capital historically [00:23:17] - What he’s noticed about luxury brands and their ability to redeploy capital  [00:26:25] - How their capital allocation strategy manifests in their financial profile [00:28:24] - The Arnault family’s control over LVMH [00:31:48] - The evolution of the industry in Europe and the strong getting stronger  [00:33:58] - Cultural differences internationally that allow some countries to thrive in luxury brands compared to others like the US [00:36:17] - Thoughts on the influence of the Chinese consumer on European luxury houses [00:40:30] - What has characterized their M&A strategy historically [00:44:08] - Overview of their recent acquisitions and what it means for LVMH going forward [00:47:46] - Their go-to-market strategy to acquire customers and build the brand [00:48:11] - Some of LVMH’s vulnerabilities and risks  [00:50:44] - Key takeaways for investors and operators when studying LVMH’s story 

This is Matt Reustle and today we are breaking down DuPont. We admire leaders that are in the trenches with their team members; never above any task and willing to share in risks. But, wow, did the Dupont family set a standard in that category. Whether it was Pierre Samuel Du Pont's 1818 death fighting a fire at their powder mill, Alexis Du Pont’s 1857 death in an explosion at a powder yard, or Lammot Du Pont’s famous 1884 death in an explosion while experimenting with nitroglycerines. The Du Pont family pushed the limits.   In the 1900s the company evolved away from their roots in gunpowder and dynamite and it's hard to find an industry they haven’t touched since then. To break down DuPont, we are joined by Seth Goldstein from Morningstar. Seth covers what separates commodity chemicals from specialty chemicals, we get some quick chemistry lessons on what's happening to create these well-known products like Nylon and Tyvek, and why after all of the years as a behemoth in the industry, DuPont has "unbundled" into several independent companies. Please enjoy our Breakdown of DuPont.    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:38] - [First question] - Key products that define Dupont’s history and where their products show up in our everyday lives [00:06:23] - The science that goes into developing their products and what being a speciality chemicals business looks like [00:10:30] - The thought process that went into their merger with Dow in December 2015 [00:13:21] - Commodity chemicals versus speciality chemicals [00:16:01] - The importance of patents and early products that first had them [00:19:47] - Their economic model and profile and current businesses [00:23:56] - How their EBITDA margins today compare to the business historically [00:25:27] - Overview and duration of their merger supply agreements [00:27:52] - Producing on a per-order basis or on market speculation [00:31:00] - Stability and internal investment of their cash flow cycle [00:32:28] - History of the Dupont family and key leadership changes [00:34:24] - Thoughts on the bull case for Dupont that will put them back on the pedestal  [00:36:28] - The percentage of the market they represent today and their current competitors [00:37:56] - Metrics used when valuing commodity and speciality chemical businesses [00:40:03] - Prior regulatory fines and potential risks going forward [00:46:44] - Key lessons for operators and investors from Dupont’s story

This is Matt Reustle and today we are breaking down the financial institution known as Charles Schwab. Schwab is a financial behemoth. They report over $8 trillion in assets under custody and a market cap scratching $120 billion but I think the most fascinating part about this breakdown is the strategic pivot taken by Schwab. While the online brokerage market has been decimated in recent years from fee compression, Schwab has been pivoting their business model to that of a traditional bank. Now what does that mean? Today, Schwab makes the majority of their money earning interest on customer cash deposits.    To break down Schwab, I am joined by Holland Advisors’ Founder and Portfolio Manager, Andrew Hollingworth. Andrew has written extensively on Schwab, which we link to in our show notes. We cover what it means to operate as a bank vs online broker, how Charles Schwab himself grew this business out of a newsletter, and what’s on the horizon for Schwab in the future. We hope you enjoy this breakdown of Charles Schwab.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt   Show Notes [00:03:30] - [First question] - Why Schwab isn’t well understood by the market  [00:05:18] - The story of Charles Schwab and how active he is in the company  [00:08:13] - The business model of Schwab itself; Holland Advisors Research [00:12:51] - Can it be compared to a franchise model; Another Flywheel [00:15:46] - What did they see in the space that convinced them to shift their business model [00:18:19] - How Schwab benefits from their customers keeping money in cash [00:20:18] - What stops competitors from copying the Schwab model [00:23:12] - Where Schwab stands out with cash on the balance sheet [00:24:17] - The reasoning behind the TD Ameritrade acquisition [00:30:38] - The Schwab customer base  [00:33:28] - Convincing new customers to transfer their accounts to Schwab [00:37:14] - How their market share has changed over the years [00:38:50] - Building their balance sheet  [00:46:34] - How their acquisition of TD Ameritrade helps their balance sheet [00:49:50] - Valuing a complex business like Schwab [00:56:43] - Key drivers of their earnings growth  [00:58:31] - How they use their net interest margin  [01:00:43] - What the market pullback this year has meant for Schwab [01:03:43] - Major lessons learned from analyzing Schwab

Today, we’re breaking down one of the strongest brands in the world - Rolex. Founded in the UK in 1905 under the name Wilsdorf & Davis, Rolex has become the leading name in luxury watches. But, while the company’s products are iconic, the business itself is highly secretive. Owned by a Foundation and run as a non-profit entity, little is known about Rolex.   To unlock the secrets, we are delighted to be joined by Ben Clymer, founder of HODINKEE, and an expert on all things luxury watches. Ben has had rare access to Rolex and the people behind the manufacturer, making him the perfect person to dissect this business with us. Please enjoy this excellent Breakdown of Rolex.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:03:01] - [First question] - Ben's favorite Rolex watch ever; Ben's Inside Rolex piece [00:04:24] - What makes the Rolex Daytona such a special watch  [00:07:19] - The job-to-be-done for high-end watches beyond just telling them the time [00:12:18] - The strategy behind marketing luxury products; The Luxury Strategy [00:14:34] - An overview of Rolex's business [00:19:38] - The history of Rolex  [00:38:45] - Their genius in marketing and distribution  [00:41:55] - How they make decisions and what others can learn from them [00:47:14] - The financials of Rolex and other luxury watch brands [00:49:02} - Most important business lessons others can learn from Rolex [00:52:54] - Other luxury brands worth studying  [00:57:26] - What Rolex hasn't gotten right

This is Matt Reustle and today we are breaking down Polish grocer, Dino Polska. This wasn't a name on our radar at Colossus but the more we dug into the story, the more intrigued we became. It starts at the macro level in Poland, a country that transitioned away from communism in 1990 so the oldest private businesses are just north of 30 years old. And on a micro level, Dino operates a rigid playbook where they target small towns and replicate the same format store, which drives better efficiency and allows them to reinvest into new locations.   To break down Dino I am joined by Jon Cukierwar of Sohra Peak Capital Partners. Jon wrote an extensive presentation of Dino which can be found on our website. We break down the unique dynamics of the Polish consumer, how Dino differentiates from its competitors, and Dino's founder of mystery Tomasz Biernacki. Please enjoy this breakdown of Dino Polska.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:03:21] - [First question] - The fall of communism in the 1990s and how it shaped the business landscape of Poland today  [00:05:43] - Dino’s unique and differentiating characteristics as a grocery store  [00:08:55] - The current market landscape of superstores, proximity, and mom and pop grocers in Poland  [00:12:36] - The size and scale of Dino as a business today   [00:14:01] - Key players and main events in Dino’s history [00:20:03] - Where Dino’s margins fall relative to their competitors [00:22:47] - Their relationship to the construction side of their business [00:26:34] - The payback period of a new Dino store and how long until they reach maturity [00:29:09] - Owned land and other factors in their real estate strategy [00:31:10] - How much of their accessible market opportunity has been seized and their potential growth rate over the coming years [00:34:20] - What their growth rate would have to be to ensure they reach their projected scale [00:36:23] - How he values grocers as an investor in both Poland and the US [00:38:12] - Cyclicality in revenue streams and what impacts them [00:40:26] - Ways Dino finances their growth and if any capital has been given back to shareholders in dividends [00:42:13] - Potential risks and threats to their business [00:45:10] - How he grew and built conviction with risks in an emerging market [00:47:48] - The main lessons he’s learned from studying Dino Polska

Today’s business needs little introduction. Berkshire Hathaway is one of the largest businesses in the world and run by arguably the most famous investors of our time, Warren Buffett and Charlie Munger.  To break down the business, I’m joined by Chris Bloomstran. Chris is the President and CIO of Semper Augustus and has gone as deep on Berkshire as anyone I’ve ever encountered, making him the perfect person to do this with. Given the reams of excellent content already out there about Buffett and Berkshire, we focused our conversation on the specific elements that make this business so special. Please enjoy this breakdown of Berkshire Hathaway.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:26] - [First question] - What Berkshire has taught the world about float [00:14:00] - How much of Berkshire's success was predicated on insurance  [00:23:17] - Whether or not Berkshire’s capital source has been more important than stock selection  [00:30:04] - Why there’s such a disparity between good stock pickers and holding companies [00:36:24] - What the major signposts of durability are when evaluating companies [00:38:29] - Acquiring Alleghany and using that as a case study that reflects their values [00:47:22] - The role that energy has played in Berkshire’s growth  [00:59:54] - Thoughts about the major pieces of Berkshire and the future of the company  [01:05:46] - Important lessons learned about investing and business from Berkshire’s story

This is Zack Fuss. Today we are breaking down Lifco, a Swedish conglomerate recognized amongst a group of notable Scandinavian serial acquirers. Lifco’s business focus is to acquire and develop market-leading niche companies that run independently and are largely self-funded business units. Carl Bennet, the current chairman, is the architect behind Lifco and was the former CEO of the famed Electrolux in the 1980s. After acquiring a business out of Electrolux with a friend, Carl formed the group that is now today's Lifco. The roots of the business are in the medical sector, specifically dental, but have since grown into a diversified conglomerate as an acquirer of dental instruments, demolition equipment, and a wide array of specialized industrial businesses.  I'm joined by Adnan Hadziefendic, a portfolio manager at REQ Capital. We discuss the company’s clear philosophy centered on constant long-term growth, a focus on profitability, and an intentionally decentralized organization. Please enjoy this breakdown of Lifco.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Follow us on Twitter: @JoinColossus | @ReustleMatt | @domcooke | @zbfuss  Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns  (00:05:27) Lifco's Business Model and History (00:06:29) Core Segments of Lifco’s Business and Acquisition Strategy (00:07:14) Carl Bennett's Role and Lifco's Evolution (00:09:53) Lifco's Turnaround and Expanding Outside of Dental (00:13:47) M&A Strategy and Integration (00:16:53) Lifco Playbook for Post-Acquisition (00:22:41) Decentralization as Paramount to the Lifco Culture  (00:28:02) Aligning Incentives Across Acquisitions (00:34:31) The Recent Leadership Transition (00:38:56) Lifco’s Capital Allocation Strategy (00:41:10) System Solutions and Future Growth (00:47:37) Lessons from Breaking Down Lifco's

Today we are running a special episode in our Business Breakdowns feed. My guest is Alex Danco from Shopify - who you may remember from our Business Breakdown on Shopify in 2021. Our conversation focuses on a new concept, tokengated commerce, and how Shopify is building around this theme. Given the market turmoil in crypto assets, we talk about true use cases of tokengated commerce and why blockchain technology is unlocking something that was not possible otherwise. This episode originally ran in our Web3 Breakdowns feed and represents an interesting case study of corporations embracing blockchain technology. Please enjoy my conversation with Alex Danco.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   This episode is brought to you by Coinbase Prime. Coinbase Prime combines advanced trading, battle-tested custody, financing, and prime services in a single solution. Clients have used our comprehensive investing platform to execute some of the largest trades in the industry because they are the only publicly-traded company with experience trading and custodying crypto assets at scale. Get started with Coinbase Prime today at coinbase.com/prime.   -----   Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag    Show Notes [00:02:16] - [First question] - What Shopify itself is as an ecosystem and service [00:05:14] - An example of interoperability and the power of platforms outside of Shopify  [00:07:02] - How interoperability and platforms come together [00:12:08] - Where a a constraint-standard resulted in failure  [00:14:26] - Why Shopify is so heavily invested in tokengated commerce [00:17:10] - Lessons learned about the scarcity function of tokens and how they’ll work [00:20:34] - Whether or not Shopify will be building their own crypto wallet   [00:24:48] - The important role blockchains play in tokengated economics [00:28:16] - Overview of the mechanics and offering Shopify is building  [00:32:16] - Tokens help establish protocol adoption [00:34:27] - Which blockchains and protocols will be mostly used in Shopify’s endeavor   [00:36:33] - Why can’t it be key-gated instead of tokengated [00:39:00] - Conjuring demand and how Shopify will create demand for their new system [00:45:46] - The differences between someone's identity and a token holder [00:47:55] - Signals that suggest tokengated commerce will be a big thing  [00:51:02] - Why this concept hasn’t been more widely adopted already [00:54:39] - When there will be a solution to easily create and distribute tokens [00:56:39] - Where things will go from here  [00:59:35] - Reasons why this might not have taken off in five years

I am @Compound248 and this is the next installment in our Business Breakdowns mini-series focused on Digital Infrastructure. In this episode, we will talk about a company that delivers that airbourne experience, Gogo. Known for its eponymous inflight WiFi service, Gogo is frequently misunderstood, having undergone a transformation to focus purely on the business, or private, aviation industry. It sells equipment that gets installed on a private aviation airplane, and then, in infrastructure like fashion, monetizes that equipment with high margin service revenue for decades. We’re fortunate to be joined by Oak Thorne, who has led Gogo for 20 years into the success it is today.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:04:02] - [First question] - Gogo’s history and how his history intersects with it [00:08:03] - His background and what lead him to joining Gogo  [00:10:01] - A primary focus on US airlines and high-end air travel specifically [00:12:33] - What the competitive landscape looks like today and how many planes they have [00:14:15] - Whether the formerly unaddressable planes will make their way into their fleet  [00:16:04] - Their product offerings today and the differences between them  [00:19:26] - Overview of their business economics and their digital infrastructure  [00:21:31] - Unit economics and labor and install costs [00:24:17] - CapEx, service revenue, and a projected 20% system growth  [00:25:55] - Cost structure margin on their recurring service revenue  [00:27:25] - Momentum of business growth year-over-year [00:28:29] - How the ATG network actually works and how the 5G connection improves it  [00:30:44] - What portion of their business comes from aftermarket installations [00:32:18] - Competitive nature of this sector and if someone could come after Gogo [00:40:42] - Describing the differences between GeoSatellite and Elon’s Starlink [00:46:19] - Reasons why Starlink might become a competitor [00:48:56] - How Gogo’s 5G and global broadband product are offensive and defensive  [00:51:24] - Portion of new US delivery aviation planes built with in-flight WiFi solutions [00:55:01] - How long he anticipates this growth runway to continue  [00:56:27] - Potential risks to Gogo from a legal and regulatory perspective  [00:59:50] - Cyclicality of their clients and suspended business periods   [01:04:57] - Two key lessons for others attempting to build and lead a company 

This is Matt Reustle and today we’re breaking down Diploma. Diploma is a specialist distributor of medical equipment and industrial components listed in the UK. It’s a business you’re unlikely to be familiar with and, at first glance, may appear mundane. But dig a little deeper and you’ll find a high-quality operator generating significant free cash flow through a mix of organic and inorganic growth channels.  To break down Diploma, I’m joined by Charlie Huggins, an investor in the business and Head of Equities at WealthClub.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @bizbreakdowns | @JoinColossus    Show Notes [00:02:23] - [First question] - The history of Diploma, what they do, and what’s attractive about their business model [00:04:39] - Size and scale of the business and their market capitalization [00:07:03] - Overview of what their life sciences business vertical looks like [00:10:00] - The cyclicality of the seals and controls business verticals  [00:13:45] - Returns on invested capital and thoughts on the capital intensity of seals [00:15:06] - What allows their businesses to keep growing and what characterizes a strong acquisition target for Diploma [00:19:14] - An example of how Diploma fits into the value chain [00:21:24] - How Diploma acquires for low multiples when making acquisitions  [00:23:41] - How they drive quantitative and qualitative returns in their acquisitions [00:27:35] - What management is like at Diploma and their longevity in the business [00:33:19] - Overview of their competitive landscape  [00:35:27] - What the business does with extra cash flow in the absence of M&A activity [00:38:01] - What Charlie finds special about Diploma and what has him excited for the future [00:41:22] - The key risks in each vertical and what worries him about them  [00:48:07] - Lessons for investors, business executives and operators from the Diploma story

This is Dom Cooke and today we are breaking down the PGA Tour. Alongside the four standalone majors, the PGA Tour is the pinnacle of professional golf. It’s where the best players in the world earn their living and tee it up for their place in golfing history. To break down the business behind the stars and action you see on the PGA Tour, I’m joined by Neil Schuster, co-founder of golf media business No Laying Up. Editor’s note: this conversation was recorded before the field for this week’s inaugural LIV golf invitational event was announced. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:27] - [First question] - What the PGA Tour is, it’s size today, and how it generates revenue [00:06:04] - Defining what the Tiger Tax is and its implications  [00:08:04] - When the PGA Tour was founded and the key moments leading up to today [00:15:40] - Deane Beman: Golf’s Driving Force; Changing the format of the Tour into a non-profit  [00:17:24] - Being a member run organization and player influence over the board [00:18:23] - Overview of the business structure and model of the PGA Tour  [00:22:27] - Reasons for the 72 hole stroke-play format   [00:24:43] - The distribution of over a billion dollars of revenue [00:27:59] - Why their capital allocation is unique and their incentive programs [00:31:37] - Unique pension structures of their deferred compensation plan [00:34:30] - The Champions Tour as a secondary way to make a living after the PGA tour [00:36:07] - Rival SGL and PGL tours and how they are trying to disrupt the PGA tour [00:44:42] - Having a legacy name advantage to bring players and capital in  [00:47:47] - Relying on growing viewership, ratings, and new sponsors over time [00:52:48] - Paths to becoming a more successful tour amidst the new startup tours [00:55:07] - Netflix’s partnership with the PGA Tour to try and bring in new viewers [00:56:54] - The most surprising lessons about the PGA Tour he’s learned   

Today, we are breaking down Anduril. Anduril builds high tech defense systems for the US Department of Defense and its allies. Crucially, it does so with speed that emanates from Silicon Valley. Founded in 2017 by Palmer Luckey, who previously built and sold Oculus to Facebook, Anduril has achieved the rare feat of challenging the established order in the defense industry.   To break down Anduril, I’m joined by the company’s CEO and co-founder, Brian Schimpf. We discuss the history of the defense industry, how Anduril’s business is counter positioned against the legacy cost-plus model, and what Brian has learned about selling to the DoD. Please enjoy this breakdown of Anduril.   For the full show notes, transcript, and links to mentioned content, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:52] - [First question] - The history of defense technology and the technological and competitive landscape when he set out to build Anduril [00:08:22] - What the early experience was like when approaching the government and finding an early adopter [00:12:44] - Necessity being the mother of invention when it came to developing drones [00:16:37] - What it’s like to develop hardware and software products at the same time  [00:20:26] - How the defense business complex works economically and overview of the detailed cost plus model [00:24:44] - The state of military technology and military conflict today writ large [00:31:10] - Are we heading to a future where warfare is mostly machine against machine?  [00:33:34] - Comparing the ghost drone system to predator drones [00:38:40] - Guiding principles as a firm and deciding on their product roadmap [00:43:25] - An overview of their product lineup and what they’ve built so far  [00:48:13] - Having an open innovation policy to promote competition [00:49:37] - The nuance of politics when it comes to building and running their business [00:51:56] - Most difficult decisions he’s had to make through Anduril’s history  [00:53:51] - How he overcame Anduril’s lowest points and biggest challenges  [00:58:38] - Thoughts on effectively compounding hardware innovation  [01:02:23] - A moment he’s most proud of and regrets most in Anduril’s history [01:04:20] - Lessons learned from observing Palantir and SpaceX  [01:08:37] - The kindest thing anyone has ever done for him

This is Matt Reustle and today we are breaking down the 150 year-old investment bank – Goldman Sachs. From the outside, investment banks like Goldman are black boxes of profits and the embodiment of “Wall Street”. But as with most things, the reality sits somewhere between the polarizing designations. Goldman is neither a vampire squid nor are they doing God’s work. To break down Goldman, I am joined by longtime financials analyst Marc Rubinstein. For loyal listeners, you will remember Marc from our popular episode on Blackstone. For those who haven’t listened, I think you’ll enjoy that one in tandem with this.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:03:24] - [First question] - Blackstone: Beyond Buyouts; What an investment bank is, what they do, and how they make their money [00:06:48] - Matt Taibbi’s Rolling Stone article; Why Goldman is perceived as the industry villain [00:10:34] - The scale of Goldman today and how it looked fifteen years ago in light of the financial crisis [00:13:55] - Industry size that Goldman operates in and their growth factors  [00:14:58] - How investment banking deals result in profits for Goldman and their ties to macro environments  [00:17:38] - Generating revenue and bottom line dollars in sales and trading as a market maker [00:21:01] - Margin differences between investment banking and trading  [00:23:52] - Asset management and profits generated from supervising over a trillion dollars in assets [00:26:30] - How investors value banks as a whole and the metrics and multiples used [00:29:35] - The differences between varying levels of assets and how a bank’s balance sheet looks like today compared to the past [00:34:40] - Whether or not there’s a way to quantify the differences of leverage and stepping into the consumer space [00:39:02] - The leadership at Goldman over the years and what David Solomon brings to the table [00:44:31] - Goldman’s outlook, the bull case and key drivers for success in the future [00:49:34] - Build versus Buy versus Partner; other potential competitors and risks to Goldman  [00:51:32] - Thoughts on the strength of their core business and classifying them [00:54:53] - Lessons for investors when studying Goldman’s story and what he’s changed his mind to as he’s worked in this industry for so long

This is Matt Reustle and today we’re breaking down Baytex Energy. With oil prices hovering over $100 a barrel, we thought it was a particularly good time to revisit this sector. Why Baytex Energy? The 80,000 barrel a day producer certainly isn’t a household name. And with a market cap just north of $3 billion, it’s far from a mega-cap. But Baytex has production in five different operating areas spanning across the US and Canada. Some of those fields are mature, some are emerging. The company has been allocating cash flow between unconventional wells, conventional wells, and debt reduction in recent years. When you take Baytex and everything that’s happening within that business, it offers a perfect lens to view the historically boom and bust industry of oil production. To help break down Baytex, I’m joined by oil and gas investor, Josh Young, of Bison Interests.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:03:19] - [First question] - The journey of producing a barrel of oil and how Baytex fits into the oil production ecosystem [00:05:29] - How $100 is dispersed amongst the value chain when a barrel of oil is purchased [00:08:03] - A broad overview of Baytex today and its history [00:13:05] - The production of a barrel of shale oil and unique characteristics of shale [00:16:25] - The main drivers of increased productivity and optimization in oil production [00:19:11] - What breaking even looks like today on a barrel of oil [00:23:20] - Describing the decline rate of a shale well compared to conventional plays  [00:25:22] - Overview of the differences of oil blends and quality coming out of Texas versus Canada [00:30:51] - A snapshot of what Baytex’s Canadian operations look like [00:35:38] - The other major Canadian assets Baytex has  [00:38:28] - The heavy oil decline rate of Canadian oil wells compared to US shale wells [00:39:59] - What makes Clearwater such an exciting and interesting opportunity for Baytex [00:43:30] - Identifying where oil might be and what that process looks like [00:47:02] - His process as an investor in evaluating new projects like Clearwater [00:56:00] - How to ascribe value to a project like Duvernay compared to Clearwater [01:00:05] - Baytex’s approach to hedging and how it differs from the rest of the industry [01:02:15] - How the management team at Baytex manages capital allocation [01:05:33] - Why return capital to shareholders  [01:07:41] - Metrics he uses to value an oil production company or adjacent business [01:11:19] - Rules of thumb to consider when it comes to evaluating the asset base [01:14:05] - Main risks that could drive stock underperformance [01:16:38] - Lessons and takeaways from his time investing and working with Baytex

I am Compound248 and today we are pleased to announce and kick-off a Business Breakdowns mini-series focused on Digital Infrastructure. This inaugural episode of the Digital Infrastructure Business Breakdowns mini series will begin with one of the broadest, most important companies in the industry, DigitalBridge. A company that is part private equity firm, part asset owner, and part infrastructure operator of assets across the digital infrastructure spectrum.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:04:22] - [First question] - What digital infrastructure means and how it came to be [00:09:58] - The nuance of digital infrastructure and how big the addressable opportunity set is [00:12:47] - How DigitalBridge became the company it is today  [00:19:06] - How he thinks about portioning the fee and value creation economics between shareholders and employees [00:23:15] - The differences between their earlier funds and current funds from how the economics split within the team and owners [00:25:53] - A look into their balance sheet today between funds and operating assets [00:28:39] - How big the digital infrastructure space could be in the future from an IM standpoint  [00:30:41] - Their US and non-US opportunity set and how towers and mobile infrastructure compare and contrast across their verticals [00:34:03] - How DigitalBridge professionals operate with portfolio companies and how they add value to them [00:38:47] - Changes in standard growth and the slow downs in the Hyperscale or Telco side of the business [00:40:37] - If Edge competes with their core assets and how it works across all of their portfolio companies [00:42:21] - Where we are on the 5G rollout and how it touches their businesses [00:43:39] - His view on building out Edge and data center capacity from a DigitalBridge standpoint [00:45:35] - How the competitive environment and risk and return profiles have shifted  [00:46:33] - How inflation affects the business and how he manages lease renewal [00:50:19] - If Elon Musk building Starlink is a threat or an opportunity  [00:52:12] - How DigitalBridge thinks about consumer facing digital infrastructure  [00:54:48] - What could happen to lead to their success and business evolution in the future  [00:56:28] - Two key lessons he’d give as advice to someone looking to build and lead a company

Today we’re breaking down AppLovin. It’s a business you may not recognize but have likely interacted with. Founded in 2012, AppLovin provides a platform for developers to market and monetize their mobile apps. The business also owns some of the most popular mobile games in the world, which they use to feed richer data into their software platform. To help breakdown the business, I’m joined by its CEO and co-founder, Adam Foroughi. Please enjoy this breakdown of AppLovin.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:41] - [First question] - The first risk taken when creating AppLovin and how it all began [00:05:05] - Why was there pushback against games and adtech back in 2012 [00:07:12] - What it was like in the early days to get the app in front of a customer  [00:08:54] - Building a platform and software product versus becoming an advertising agency [00:10:47] - The major components of AppLovin and how it works  [00:15:21] - The space or areas where most people interact with them and see their work  [00:16:26] - What he considers to be the next key chapters after AppLovin’s early days  [00:18:25] - How they determine strategy between the app developer side of the business and app ownership [00:25:50] - How AppLovin interacts with Apple, Android, and the relationship between products [00:27:11] - What he’s learned about the importance of scale in advertising  [00:28:58] - The major breakout points in the business that led to where he is today  [00:30:22] - Their revenue model and it how it breaks between software and apps [00:33:55] - The margins of gaming, its business proposition, and the future value of this side of the franchise [00:38:53] - His perspective on what defines great digital marketing today  [00:40:31] - Walking through the shifts in privacy, targeting, and data as technology changes [00:43:13] - His thoughts on emerging platforms as competitive threats and/or opportunities  [00:44:58] - How they’ve kept the business nimble and very product-focused on a corporate level [00:46:53] - Their concept of meetings and how they’ve learned to run them effectively [00:50:24] - The missing pieces in his strategic mission that he still wants to do in five years time [00:51:42] - What he’s learned from Facebook, Google, and game studios he’s worked with [00:54:32] - How he thinks about defensibility and power in the business as they evolve and grow [00:57:19] - His philosophy on the maturity of the business and if they’d pay dividends in the future [00:59:32] - How he has most improved in his career during his time with AppLovin  [01:02:03] - Questions that the world’s largest bear would ask him today [01:03:18] - The most interesting trends happening around him in the digital space [01:06:04] - His thoughts on the eventual impact of Facebook and Google becoming competitors rather than the collaborators they are today 

This is Jesse Pujji and today’s episode is a follow up of last weeks’ Block episode, covering Afterpay the buy-now-pay-later giant. Founded in Sydney Australia in 2015, Afterpay was a rapid success in the buy-now-pay-later market before being acquired by Block for $29bn in 2021.    To breakdown Afterpay, I am joined by investor Joe Magyer. We cover how buy-now-pay-later compares to traditional credit cards, what differentiates Afterpay from direct peers, and how each player of its ecosystem benefits from its offering. Please enjoy this business breakdown of Afterpay.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:52] - [First question] - What is Afterpay and what it does [00:07:07] - Size and scope of Afterpay today [00:08:27] - The founding story and their growth being such a young company [00:12:11] - History of the buy now pay later industry [00:13:34] - How their payment models tend to work and how these companies make money [00:16:35] - Unit economics, transaction structure and how money is made [00:21:44] - How Afterpay drives leads to people via their app and merchant aggregation [00:23:39] - An early focus on fashion and expanding beyond their core clientele [00:27:13] - Cost of sales and thoughts on taking more credit risk [00:31:54] - Losses as a part of cost of sales and interest [00:33:48] - Unique things that Afterpay can do given their business model that others can’t [00:35:21] - Growth levers for this business  [00:38:29] - Other major things they’re spending money on and their acquisition by Block [00:44:28] - The competitive landscape in the BNPL industry [00:47:54] - Afterpay’s flywheel and how they’ve built it better than others [00:49:34] - Whether or not regulation plays a role in this space [00:52:21] - What will have gone right in the next five years to ensure Afterpay’s growth curve [00:55:01] - What will have happened if Afterpay’s growth doesn’t work out in the future [00:56:31] - Whether or not interest rate risk could turn south for them [00:57:30] - Lessons for investors, builders, and where to learn more about Afterpay’s story; Buy Now, Pay Later 

We have a special episode today, breaking down the CHIPS Act. We've covered the semiconductor space in depth on Business Breakdowns, but in this conversation, we go broader. We discuss the CHIPS Act, enacted by Congress in 2022, which aimed at boosting the US's semiconductor manufacturing capabilities to better compete with East Asia. America had been dependent on that foreign manufacturing which created massive shortages, having implications across some of our most important resources and defense systems. The CHIPS Act itself provides just under $53 billion in subsidies for US companies and the goal is to build out these capabilities with leading edge logic and memory fabrication, advanced packaging facilities, and advanced capacity for current generation semiconductors.  My guest today is Todd Fisher, CIO of the CHIPS Act office. We discuss some of the broader questions any investor might have about subsidized industry programs and how that will shift to the natural free market supply & demand dynamics that you would typically see in industries like semiconductors. It's truly a wide range of conversation and particularly timely with the recent funding announcements from the team. Please enjoy this breakdown of the CHIPS Act. Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Follow us on Twitter: @JoinColossus | @ReustleMatt | @domcooke | @zbfuss  Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:05:23) Current State of the Semiconductor Supply Chain (00:08:50) Funding and Incentives Breakdown (00:11:23) Sustainability and Long-term Viability of Projects (00:15:54) Building Economic and National Security (00:18:25) Massive Undertakings in Fab Construction (00:20:49) Vision for Success and Leading Edge Fabrication (00:29:54) Workforce Development and Environmental Considerations (00:36:55) Future Milestones and Program Success Metrics (00:44:00) TSMC Moving Capacity Into the USA (00:48:43) The Effect of the Upcoming Election on the CHIPS Act 

This is Jesse Pujji and today we’re breaking down Block – formerly known as Square. This software and financial services business was founded by Jack Dorsey and Jim McKelvey in 2009. It has since expanded from its first product – a payments card reader – into a $75 billion market cap with six businesses that build on the firm’s mission of economic access and empowerment. Those are: Square, Cash App, Afterpay, Tidal, Spiral, and TBD.   To break down Block, I’m joined by payments expert and investor at TDM Growth Partners, Hamish Corlett. We cover the common threads that have enabled Block to organically build two major ecosystems in Square and Cash App, how the recent Afterpay acquisition can strengthen the connective tissue between those businesses, and the competitive frontiers Block faces. Please enjoy this business breakdown of Block.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:52] - [First question] - What is Block and what it does as a business [00:04:58] - How is Block organized, their scale, and how many merchants they serve [00:08:03] - Their founding story and the insight that lead to creating Block [00:10:49] - Major milestones in the last decade after releasing their card reader [00:13:47] - The story behind their Cash App and what it is [00:18:59] - What Afterpay is and how it creates connections for merchants [00:21:23] - Overview of the payment ecosystem and where Block fits into it [00:25:03] - The P&L of Square, its blended gross margin, and customer acquisition strategy [00:30:42] - How Cash App makes money and its P&L [00:35:54] - The balance sheet of Block and how they’ve stood out in a competitive space [00:38:31] - The ways their product organization allows them to move at a rapid pace [00:40:30] - How they avoid fraud that’s seemingly everywhere in financial service businesses [00:42:01] - His thoughts on the competitive environment and how they’re succeeding [00:47:56] - Highlights of M&A and how they reconcile them with their overall strategy [00:54:44] - Their view on Bitcoin and crypto and how it plays into Block’s business [00:59:09] - Things that could happen in a macro environment to aid their future growth [01:01:30] - What could go wrong in the future and the macro environment’s impact [01:03:49] - Lessons for builders and investors when studying Block’s story [01:06:20] - Places to go to learn more about Block

This is Jesse Pujji and today we’re breaking down McKinsey & Company, the world’s pre-eminent management consulting firm. Founded in the thick of the Industrial Revolution, McKinsey set about professionalizing the way businesses were managed. An accountant by trade, James McKinsey, took inspiration from a range of well-established professions like engineers, doctors, and lawyers to create a new category.    Today, some 100 years later, management consultants are entrenched in every part of the global economy and McKinsey continues to lead the field. To break down the business, I’m joined by Romeen Sheth, a McKinsey alum and the current President of Metasys Technologies. Please enjoy this business breakdown of McKinsey & Company.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:35] - [First question] - What is McKinsey & Company and what management consulting looks like [00:04:52] - Their project-based model and what’s being bought and sold when McKinsey makes a sale [00:07:36] - The scale of the business and how profitable it is [00:08:58] - How many projects McKinsey is running and how big of an opportunity management consulting is [00:10:37] - McKinsey’s famous ownership model and how it works [00:12:49] - The history of McKinsey, who started it, and how it has evolved in modern times [00:19:01] - How the firm has changed in the post-Bower era [00:22:12] - McKinsey’s biggest competitors, their dynamics of practice groups, and vertical projects [00:25:46] - How a CEO or top level manager decides which management consulting firm to do business with [00:27:38] - The overview of a normal project for McKinsey, what they sell, and costs associated with it [00:33:07] - The process of marketing and sales and their talent flywheel [00:36:07] - The traditional side of their sales and marketing and the McKinsey Quarterly [00:37:44] - How someone can pitch business to McKinsey and their sales process [00:39:47] - What makes the organization special and unique from a team or work perspective [00:41:01] - Their talent model and how they find and develop their talent  [00:45:14] - How their staffing model is unique and how they tie feedback into staffing [00:51:06] - Examples of the scandals that have happened and why [00:55:24] - The biggest growth levers of the business looking forward [01:03:52] - What could happen to make McKinsey a shell of its former self  [01:05:38] - Where Romeen would direct people to go for further study; The Firm [01:06:31] - Lessons for builders and investors when studying McKinsey’s story

This is Jesse Pujji, and today we are breaking down Fanatics. If you’ve recently bought sports apparel online, you interacted with Fanatics. They power the entire digital commerce experience for the NFL, MLB, NBA, NHL, and hundreds of other sports leagues around the world.    To break down Fanatics, I am joined by an early investor, Deven Parekh, from Insight Partners. Deven has been an investor in Fanatics since 2011. We cover Fanatics' unique vertically integrated commerce model, how they redefined their TAM, and how the company is aggressively entering NFTs, real money betting, and other expansion areas. Please enjoy this business breakdown of Fanatics.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:40] - [First question] - What is Fanatics and the scale of the business today [00:04:26] - What the core business of Fanatics does [00:05:41] - The history of Fanatics and what led to its success [00:10:59] - Michael Rubin’s story and the role that GSI played in Fanatics’ growth [00:13:58] - How the licensing business works and how Fanatics’ relationship with the leagues differs from their competitors  [00:15:34] - The landscape of this industry before Fanatics [00:16:36] - Why the change from the best commerce experience to a broad digital sports platform [00:19:02] - Differences of Fanatics’ P&L compared to others in the industry [00:21:05] - How the real-time advantage helps drive growth in the business [00:23:12] - Whether or not the leagues participate in gross margins and how much of a focus they place on cost optimization  [00:25:25] - Distinctive things about Fanatics from an investor’s perspective   [00:26:22] - Why hasn’t Amazon stepped into this space yet [00:27:30] - Which leagues have opted out of working with Fanatics and interesting team and player dynamics [00:28:59] - Reasons behind getting involved with NFTs, trading cards, betting, and how it might evolve in the future [00:32:22] - Ways they’re taking the core business and augmenting other branches [00:34:36] - What will have gone right over the next five years for Fanatics to continue growing at the pace they are today [00:37:59] - What will have gone wrong over the next five years that will hurt Fanatics’ growth [00:39:59] - Lessons for builders and investors when studying Fanatics’ story 

Today's episode was originally featured in our Web3 Breakdowns feed. For listeners unfamiliar with Web3 Breakdowns, the concept was inspired by Business Breakdowns but intended to be a place fully dedicated to the emerging ecosystem around blockchains, crypto assets, and everything that makes up Web3. This Breakdown of Anchorage Digital has a foot in both camps, by diving into a business that’s enabling traditional institutions to participate in and profit from digital assets. If you enjoy this episode, be sure to subscribe to Web3 Breakdowns and enjoy our growing catalog of episodes.   My guest today is Diogo Monica, co-founder and President of Anchorage Digital. Diogo started Anchorage in 2017 to meet the growing institutional need to custody and use crypto assets. The business has since grown into a full-service financial platform for institutions, allowing them to securely participate in web3. Our discussion breaks down Anchorage’s business, explores what great digital security looks like, and reveals what new behaviors web3 is unlocking for traditional institutions. Please enjoy this breakdown of Anchorage Digital.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   This episode is brought to you by Coinbase Prime. Coinbase Prime combines advanced trading, battle-tested custody, financing, and prime services in a single solution. Clients have used our comprehensive investing platform to execute some of the largest trades in the industry because we are the only publicly-traded company with experience trading and custodying crypto assets at scale. Get started with Coinbase Prime today at coinbase.com/prime.   -----   Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag    Show Notes [00:02:40] - [First question] - Why he got into the crypto space and what set him down the path that would to founding Anchorage  [00:05:53] - An overview of digital security, state of it today, and where people should spend their time learning about it [00:09:16] - A future of perfect authentication and data protection being so core to this space [00:13:29] - How custody should be considered in the modern world and with digital assets [00:18:59] - What it means to be a great qualified institutional custodian [00:25:17] - The business and unit economics of Anchorage [00:28:07] - What it was like working with their first big institutional client [00:30:52] - Speed as a component of digital security and its implications writ large   [00:35:51] - How they’re differentiated from their competitors by expanding beyond custody [00:39:46] - Different challenges between securing NFTs versus currencies and tokens [00:42:43] - New behaviors he finds most interesting about institutions due to Anchorage [00:48:46] - Breakdown of what players and services contribute to and create Anchorage’s clients today [00:51:24] - The best case scenario for the future of the business [00:53:37] - What would worry him about Anchorage’s development if it swayed from their original mission [00:55:55] - Opportunities he finds most interesting that haven't materialized yet  [00:57:46] - Will we need a public blockchain to create the infrastructure needed to bring the world to a more crypto-fluid place [01:00:07] - The kindest thing anyone has ever done for him 

This is Zack Fuss and today we’re breaking down European-based payment business, Adyen. Adyen was founded in Amsterdam in 2006 by a group of payments entrepreneurs who had already built and sold a business in this space. Adyen was their chance to start afresh and build a modern solution to displace the patchwork legacy system that merchants were being forced to use.   To break down the business, I’m joined by Michael Willar, a portfolio manager at Stenham Asset Management. Our discussion covers Adyen’s single platform solution in detail, the driving force behind their track record of profitable growth, and why payments isn’t a winner take all market. Please enjoy this breakdown of Adyen.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes [00:02:55] - [First question] What Adyen is and what they do  [00:05:54] - General overview of how payment processing works [00:07:29] - Flow of a transaction and how they manifest [00:09:52] - How the business generates revenue and their revenue model [00:11:25] - Where Adyen sits in the industry and the size of it today [00:13:37] - The reality of processing 50-60% of their addressable market  [00:16:19] - What about their culture and founding story makes them so nimble  [00:21:18] - The competitive strengths of the business and their innovative solutions  [00:24:07] - Key revenue drivers for Adyen  [00:26:01] - What is it about Adyen’s business structure that enables them to grow so rapidly while still being profitable [00:29:34] - Key growth drivers  [00:32:44] - What gives Adyen its competitive advantage over other payment providers [00:35:56] - Having one platform is beneficial but why isn’t it a more popular approach?  [00:37:42] - The secret sauce behind their successful growth trajectory [00:39:25] - The essence of Adyen’s culture and how it manifests in their day-to-day work [00:42:04] - What Adyen plans to do with all of the cash they produce [00:43:35] - What keeps him up at night and potential threats to the business [00:47:54] - Is there a chance anyone could build a platform comparable to Adyen? [00:50:06] - Key differences between Stripe and Adyen [00:56:23] - Lessons learned from studying Adyen and what payment service builders can learn from them

This is Matt Reustle and today we are breaking down Cadence Design Systems. Cadence operates in the semiconductor ecosystem where they offer electronic design automation software - also known as EDA software - which is used for chip design. Putting that in much simpler terms - our phones now carry an entire 1980s Radio Shack inside them, and Cadence makes that possible with software to design smaller and more powerful chips.    To break down Cadence, I'm joined by two well-known tech investors and experts in the semiconductor space, Brinton Johns and Jon Bathgate of NZS Capital. We cover the value chain of semiconductors, the evolution of Cadence and the EDA market, and how Cadence reduced it's cyclical exposure over the last decade. I think some of the most interesting lessons come from businesses that face adversity and truly re-invent themselves with a micro-strategic change. Cadence is a prime example. Please enjoy this breakdown of Cadence.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:03:15] - [First question] - Everyday products that Cadence helps bring to life [00:07:28] - The rise of Cadence and the origins of the semiconductor industry  [00:10:26] - Major players in the semiconductor space back in the 80s  [00:12:13] - Going from plan, to chip, to production [00:16:58] - The life cycle of a chip and the cost to design one  [00:19:19] - Differences between software design and embedded software  [00:21:25] - The history of Cadence and the size and scope of their business today  [00:28:05] - Existing customer base and how diversified they are [00:30:55] - What a contract actually looks like between Cadence and a customer [00:35:05] - Protection, off-the-shelf IP blocks and custom IP  [00:35:53] - Cadence’s revenue growth, important metrics, and their KPIs [00:37:03] - How correlated their revenue is to semiconductor cycles [00:39:30] - Unit economics and the margin profile of the business [00:42:13] - Contributing factors to growth and thoughts on pricing [00:45:46] - Benefits of scale and what they like to see as investors from their R&D spend [00:48:12] - Risks and competitors that may threaten Cadence’s success [00:50:22] - Potential scenarios where the ecosystem becomes more vertically integrated [00:52:56] - What would drive a 10x growth for Cadence in next five years [00:54:58] - Things that would affect their growth in the next five years  [00:57:38] - Lessons for investors when studying Cadence [00:59:15] - How they navigated the pandemic and how it impacted their business

This is Jesse Pujji and today we’re breaking down The New York Times. Since its founding in 1851, The New York Times has become known as the national “newspaper of record” through its focus on truth seeking and quality journalism. To underline that status, it has won 132 Pulitzer Prizes, almost double its nearest competitor. However, the business behind the Times hasn’t always been easy and it has faced several existential threats over its history, most recent of which has come from the internet and digital mediums.   To break down The New York Times, I’m joined by Morning Brew co-founder and host of Founder’s Journal and Imposters podcasts, Alex Lieberman. It’s particularly interesting to hear a new media operator dissect the heritage and evolution of one of the most storied brands in his industry. Please enjoy this breakdown of The New York Times.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:55] - [First question] - What The New York Times is as a business [00:04:35] - Snapshot of the scale of The New York Times and it’s readership [00:08:06] - The origin story of The New York Times and becoming a national news source [00:11:40] - How the business is distinctive being family-run for five generations [00:15:00] - Unpacking the shift from physical to digital and how it impacted their numbers [00:20:00] - Course correcting after the first few years of their digital strategy not succeeding as anticipated [00:23:43] - The cost of sales and the margins of the business and growth levers [00:27:47] - Revenue differences between advertising and subscriptions  [00:29:37] - What does their non-digital advertising business look like [00:31:43] - The biggest levers for growing the topline and bottomline of the business [00:35:18] - Acquiring Wirecutter & historical M&A performance [00:37:57] - Other categories and businesses that help build a bigger audience [00:42:00] - Differences between the Netflix and New York Times subscription models [00:44:37] - Leaning into world events and politics [00:48:22] - Macro factors and specific things that would lead to reaching their subscriber goal in the future [00:51:10] - Mistakes and threats that could negatively impact their goals [00:55:43] - Biggest lessons for builders, entrepreneurs, executives and investors [00:58:30] - Learn more about the New York Times; Peter Kafka, Rich Greenfield, Lightshed Partners

This is Matt Reustle, and today we’re breaking down Europe’s leading low-cost gym operator, Basic-Fit. Netherlands based Basic-Fit is a story of rapid expansion. Today, they operate over a 1000 clubs across 5 countries, and have 2 million combined members in their system.   To break down the business, I’m joined by Jonathan Abenaim from Arlen House Capital, who is an investor in Basic-Fit. We cover a history of fitness clubs dating back to the late 70’s and early 80’s, how low-cost gym models have emerged as winners and created a large addressable market, and we talk about how Basic-Fit is putting its own spin on a successful playbook from the US. Please enjoy this breakdown of Basic-Fit.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes [00:02:47] - [First question] - What it’s like to walk into a Basic-Fit gym [00:03:50] - Their footprint today in terms of geography, members and locations  [00:04:41] - The history of gyms in the US and differences between them and European ones [00:08:33] - Why US gym models lack influence and penetration in Europe [00:10:58] - The key insight that led to founding Basic-Fit  [00:13:40] - Economics of building and operating a gym in general and for Basic-Fit [00:16:47] - Typical churn for more established locations and their member demographic [00:20:33] - When Basic-Fit breaks even on a membership and how they battle churn [00:23:28] - Their cancellation policy and why they don’t leave for typical reasons [00:25:10] - Basic-Fit’s fortressing strategy and clustering philosophy [00:28:51] - Whether or not there’s data to support members using multiple gyms  [00:33:11] - The competitive landscape and whether other gyms adopt Basic-Fit’s strategy [00:35:21] - What drives country localizations for a particular gym chain [00:38:22] - Basic-Fit’s digital offering and at-home disruption from US brands  [00:42:31] - How they navigated the pandemic and if there’s any lasting changes [00:44:31] - The biggest threats to Basic-Fit over the next five years [00:46:23] - Major takeaways from studying Basic-Fit’s story

I'm Zack Fuss and today we are breaking down UPS. With over 100 years of history, it's a business we all know as consumers and one many of us interact with on a daily basis. But in investing circles, UPS carries far less relevance and attention share despite its large market cap. To break down UPS and its rich history, I am joined by former Transport Analyst Matt Reustle. Please enjoy this breakdown of UPS.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes [00:02:37] - [First question] - The footprint of UPS in the US economy [00:04:11] - What relevant metrics analysts use to understand UPS’ value [00:06:57] - How logistics networks work and operating leverage on their fixed assets [00:10:43] - UPS’ origin story and key differences between it, Amazon, and FedEx [00:18:24] - Whether or not Amazon is consuming the market or if the market is growing [00:22:20] - Decreased return on capital and the roadmap to increase returns going forward [00:25:14] - Making a decision to lean into their network and what it meant for their customers [00:27:33] - The importance of management and needing outsider management [00:31:40] - Capital investment programs and what Amazon’s growth means for UPS [00:34:41] - Secular changes versus historical cyclicality of fulfillment businesses [00:36:35] - Competitive impacts Amazon and USPS could have on UPS’ future success [00:42:26] - Why cross-border delivery is such a lucrative aspect of this market [00:42:51] - Lessons for investors and builders when studying UPS’ story

I’m Zack Fuss, and today we are breaking down Twitter, a business that needs little introduction. Founded by Jack Dorsey in 2006, Twitter has become one of the most visited and influential platforms in the world. Yet, despite its rising social status, investors and users have been left frustrated by the company’s pace of innovation and shareholder returns. To help me break down Twitter’s business, I’m joined by anonymous professional investor, @Compound248. Please enjoy this breakdown of Twitter.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes [00:02:40] - [First question] - The history of Twitter and where we are today [00:10:44] - The size and scope of Twitter and what drives their business and unit economics [00:18:54] - Reconciling differences between Twitter and competitive social media platforms [00:24:36] - Bridging the gap between Twitter and their competitors [00:29:38] - What about their legacy system had to be rebuilt in order to grow again [00:34:35] - Unique shareholder dynamics, activists in the boardroom, and leadership change; Compound's open letter to Management [00:43:35] - Capital allocation and how investment analysts look at and measure their ROI [00:49:00] - Efforts to innovate around new use cases and Twitter’s opportunity set [00:55:30] - What builders and investors can learn from studying Twitter’s story 

Today we are breaking down InterDigital, a really interesting business that sits completely under the radar for most investors. InterDigital has the foundational patented technology that makes mobile phone communication and device-to-device communication possible. Everything revolving around 2G, 3G, 4G, 5G, the Internet of Things, and all of these devices in the world that communicate with one another is underpinned by InterDigital technology. My guest is Jenny Wallace, co-founder and CIO of Summit Street Capital Management. We discuss InterDigital's five decades of history, what it takes to maintain its patent portfolio of 30,000 patents, and much more. Please enjoy this Breakdown on InterDigital.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Follow us on Twitter: @JoinColossus | @ReustleMatt | @domcooke | @zbfuss Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Introduction to Business Breakdowns (00:04:40) The History and Evolution of InterDigital (00:05:49) InterDigital's Impact on Wireless Communication (00:10:12) Exploring the Patent Portfolio and Business Model (00:16:13) Technology as the DNA of the Company (00:20:45) An Evolving Business Model and Maintaining 30,000 Patents (00:25:00) InterDigital's Legal Battles and Financial Health (00:31:12) Volatility in InterDigital’s Revenue Stream  (00:37:21) R&D Spend as a Key Focus (00:41:13) The Future of InterDigital: Opportunities and Challenges (00:48:57) Investment Perspectives and Valuation Insights (00:53:46) Lessons Learned From InterDigital

This is Jesse Pujji and today we are breaking down ViacomCBS. This episode has a different format - you'll hear from both an investor and from company management.   Chris Marangi from Gabelli Asset Management starts us off with a history of ViacomCBS. He goes deep into the dynamics of content creation, curation, and distribution, hitting home the value of IP. Then he helps break down how ViacomCBS is transitioning from a shrinking linear business to a growing streaming business.   Next, I sit down with the CFO of ViacomCBS, Naveen Chopra. He shares his views on the business today, how he thinks about capital allocation, and how streaming will evolve for ViacomCBS. Please enjoy this Business Breakdown.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes - Pt 1 with Chris Marangi [00:03:31] - [First question] - What is ViacomCBS [00:04:10] - What a typical media conglomerate looks like [00:06:45] - The scale and size of ViacomCBS today  [00:09:03] - Starting as a radio business and becoming a diversified conglomerate [00:11:25] - What the competitive landscape looked like fifteen years ago  [00:14:07] - Economics of a typical cable network channel like ESPN or MTV [00:16:23] - Key differentiators between a good and a bad channel revenue-wise [00:17:22] - The important roles movies play and how the film industry works writ large [00:18:12] - Durable competitive advantages in producing strong content  [00:19:26] - How much of their market cap is their catalog [00:20:04] - Adopting a streaming model and the impact of this inflection point [00:24:33] - Thoughts on customer acquisition in movies and streaming services [00:25:33] - What has to go right for their market cap to double in the next decade [00:27:55] - What will have gone wrong if they don’t grow over the next decade [00:28:26] - Lessons for entrepreneurs and investors when studying ViacomCBS’s story [00:29:33] - Learn more about ViacomCBS and the cable industry; Cable Cowboy   Pt 2 with Naveen Chopra [00:30:27] - [First question] - Overview of the different businesses within ViacomCBS [00:34:07] - Size of the broadcast arm of ViacomCBS’s business and the costs of running it [00:37:23] - How wide the range of content expenses can be  [00:39:35] - Thoughts on making movies and the business model pre-pandemic [00:42:47] - Is the box office opening night really that important? [00:44:40] - How much box office attendance is down post-pandemic [00:46:19] - Same day releases for streaming and box office can help acquire subscribers [00:51:45] - Leveraging intellectual property to generate revenue [00:53:23] - How much Netflix invests in content compared to ViacomCBS and competitors [00:54:11] - Thoughts on the business model for streaming service revenue [00:58:01] - Scaling Paramount+ to compete and compensate for pandemic impacts [01:02:16] - What he’s most excited about for ViacomCBS and Paramount+ looking forward [01:06:00] - Things in the macro-environment that could be good and bad for ViacomCBS [01:07:54] - Lessons for entrepreneurs and investors when studying ViacomCBS’s story

This is Jesse Pujji, and today we’re breaking down Peloton. Peloton was founded over ten years ago with the idea of making the best in-person gym classes available at home. By delivering eye-catching hardware and compelling content, it has since become the largest interactive fitness platform in the world with over 6 million members. Peloton’s rise has not been without challenges, however, and the business’s economic model is under debate as we speak.   To break down Peloton, I’m joined by my brother Vinny Pujji, partner at Left Lane Capital, a growth-stage investment firm focused on consumer businesses. We discuss Peloton’s success in creating a new fitness category, the impact of the pandemic on its financials, and why it may make sense for Peloton to build its own music label. Please enjoy this breakdown of Peloton.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes [00:03:37] - [First question] - What Peloton is and what they do [00:04:59] - How most consumers experience their brand [00:05:40] - Their customer base and the size of their business today [00:06:22] - The founding story and what lead to Peloton  [00:10:10] - What business they started with and how they’ve expanded their offerings [00:12:03] - Complexities of direct to consumer hardware distribution [00:13:01] - Scope of the global fitness and wellness market writ large [00:14:42] - Unit economics of Peloton’s business [00:19:03] - Contributing factors that draw on their cash and working capital  [00:22:46] - What would solve their current liquidity problem [00:25:11] - Their latest treadmill product and their subscription product [00:26:22] - Thoughts on why management has struggled with their forecasts [00:29:44] - The competitive landscape as it exists today and how they compete [00:33:16] - Whether or not Peloton will experience a boom and bust cycle [00:35:18] - What Peloton does very well that separates them from their competitors [00:36:52] - Gamifying fitness and incorporating a live feature [00:38:59] - How music plays into their business and its role in their future  [00:41:45] - Whether they are a subscription or hardware business [00:43:59] - What has to go right in order to scale their market cap in the next decade [00:45:08] - Their approach to marketing and what drives their engine [00:47:17] - What will have gone wrong if Peloton doesn’t survive the coming decade [00:50:28] - What can we learn from Peloton

This is Jesse Pujji and today we are breaking down the emerging industry of cannabis. After spending decades as an illegal drug, US states have begun to make regulatory changes and build legalized marijuana marketplaces. To help me break down this market, I am joined by Jeff Hoffman of Marathon Partners Equity Management. Jeff is co-portfolio manager of a fund, which invests in US public cannabis companies. We discuss exactly what those regulatory changes look like, the difference between federal and state laws, and companies across the value chain that are showing up in public markets. I hope you enjoy this breakdown.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes [00:03:40] - [First question] - What is cannabis and the current size of the industry today [00:05:44] - Differentiating between THC and CBD  [00:06:46] - Whether or not the whole market is growing writ large [00:08:08] - The history of cannabis, the changing legal landscape, and key players today [00:10:51] - What the argument was for making cannabis a schedule 1 narcotic [00:11:48] - Is cannabis addictive, objectively speaking? [00:13:27] - The differing levels of when cannabis is or isn’t legal  [00:14:05] - Overview of the value chain involved in getting cannabis to a dispensary [00:15:18] - What an MSO is, how their operations work, and the marketplace today [00:20:31] - Regulatory catalysts that would allow this market to thrive [00:23:19] - The income statement of an MSO, their expenses, and how they differ from traditional businesses [00:26:44] - Different business models for MSOs depending on their geography  [00:29:31] - How the economics of MSOs compare to mom and pop shops  [00:31:30] - Normalizing margins and incentives to compete on price or participate in discount wars [00:33:48] - D2C, mobile-first, and delivery trends influencing distribution [00:35:53] - Whether or not cannabis is considered perishable  [00:36:43] - How the finance industry is evolving around cannabis  [00:38:44] - The role COVID played in helping the cannabis industry grow [00:41:03] - Will cannabis see a pullback in public interest as the world returns to normal [00:42:25] - Form factors to consider as the industry shifts from medical to mature markets [00:44:20] - What will have to happen for the cannabis market to excel in the coming decade [00:47:07] - How M&A might play out as the market continues to evolve [00:49:06] - Lessons for builders when it comes to the cannabis industry [00:51:54] - Learn more about the cannabis industry; marijuanamoment.net