Today we are breaking down GE Aerospace. We did cover GE several years ago, but that episode focused on Larry Culp's turnaround of the conglomerate. 

Ramesh Narayanaswamy, co-founder and portfolio manager of Tourbillon Partners, joins me to explore what is now a pure-play aerospace business. We discuss the unique dynamics of the aerospace supply chain and the long-cycle nature that differentiates this industry. We also explore the complexity of aircraft engine manufacturing and how GE exemplifies the powerful model of selling services attached to equipment. Please enjoy our conversation on GE Aerospace.

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 ⁠Portrait Analytics⁠⁠⁠ - your centralized resource for AI-powered idea generation, thesis monitoring, and personalized report building. Built by buy-side investors, for investment professionals. We work in the background, helping surface stock ideas and thesis signposts to help you monetize every insight. In short, we help you understand the story behind the stock chart, and get to "go, or no-go" 10x faster than before.

Sign-up for a free trial today at⁠⁠ ⁠portraitresearch.com⁠⁠⁠

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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

(00:01:52) Overview of GE Aerospace

(00:04:01) Commercial Jet Engines: Market and Segments

(00:08:16) Military and Defense Applications

(00:10:07) Financials and Revenue Streams

(00:15:57) The Legacy and Transformation of GE

(00:20:31) Jet Engine Industry and GE's Role

(00:22:04) Challenges and Partnerships in Jet Engine Manufacturing

(00:28:39) Revenue Models and Customer Segments

(00:30:29) Understanding the OE and Aftermarket Revenue Models

(00:31:50) The Profitability of Aftermarket Services

(00:34:25) Revenue Models in the Aftermarket

(00:36:11) Growth Strategies and Market Dynamics

(00:39:38) Impact of Economic Cycles and Resilience

(00:43:33) Capital Intensity and Return on Capital

(00:47:12) Competitive Landscape and Technological Risks

(00:55:07) Valuation Approaches and Market Perception

(00:57:39) Key Takeaways and Lessons from GE

 This is Matt Reustle. Today, we are back to talk about increased access to alternative investing. My guest is Josh Clarkson, managing director at Prosek Partners. You may remember that Josh joined us last year in our primer series on private credit. He is back today to discuss what this development could mean for all the counterparties involved.

We put some numbers around the opportunity, cover what asset managers might be best positioned to capture it, the strategies that most naturally fit, and some of the risks to the investor base. It is a fascinating theme that I expect to continue gaining momentum. Please enjoy this Breakdown on Alternative Investing. 

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 ⁠Portrait Analytics⁠⁠ - your centralized resource for AI-powered idea generation, thesis monitoring, and personalized report building. Built by buy-side investors, for investment professionals. We work in the background, helping surface stock ideas and thesis signposts to help you monetize every insight. In short, we help you understand the story behind the stock chart, and get to "go, or no-go" 10x faster than before.

Sign-up for a free trial today at⁠ ⁠portraitresearch.com⁠⁠

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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

(00:02:47) The $4 Trillion Opportunity in Alternative Investments

(00:04:13) Headlines and Market Concerns

(00:07:09) Regulatory Changes and Historical Context

(00:09:31) Private Wealth Channel and Product Evolution

(00:10:29) Investor Education and Liquidity Considerations

(00:15:34) Future of Private Markets and Alternative Investments

(00:27:27) The Role of Major Players and Market Dynamics

(00:45:18) Lessons From the Alternative Investing  Industry 

This is Matt Reustle. Today we are breaking down Robinhood. My guest is Arthur Olson, founding partner at Ravenswood Partners. We get into how Robinhood grew from a mobile-native brokerage idea that faced many challenges along the way into the third-largest broker in the USA. 

Arthur educates on how the business model has evolved and diversified away from a pure pay-for-order market. We discuss how product velocity is the foundation behind everything in Robinhood’s continued penetration and how new talent has made a material difference. Please enjoy this Breakdown of Robinhood

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 ⁠Portrait Analytics⁠⁠ - your centralized resource for AI-powered idea generation, thesis monitoring, and personalized report building. Built by buy-side investors, for investment professionals. We work in the background, helping surface stock ideas and thesis signposts to help you monetize every insight. In short, we help you understand the story behind the stock chart, and get to "go, or no-go" 10x faster than before.

Sign-up for a free trial today at⁠ ⁠portraitresearch.com⁠⁠

—

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

(00:01:51) Founding Story of Robinhood

(00:04:29) The Rise of Mobile Trading

(00:11:37) Payment for Order Flow Explained

(00:15:39) Robinhood's Competitive Edge

(00:22:28) Adapting to Market Changes

(00:24:52) Product Evolution and Customer Retention

(00:29:32) Analyzing Robinhood's Growth and Investor Behavior

(00:30:16) Historical Parallels: Robinhood vs. Charles Schwab

(00:31:19) Crypto and Regulatory Challenges

(00:32:41) The Role of Prediction Markets and Sports Betting

(00:34:41) Revenue Streams and Future Prospects

(00:36:54) Banking and Financial Services Expansion

(00:41:32) Cost Structure and Competitive Advantages

(00:44:30) Account Growth and International Opportunities

(00:50:10) Regulatory Relationships and Risks

(00:55:15) Lessons from Robinhood

This is Matt Reustle. Today we are breaking down CompoSecure, a company that manufactures premium metal credit cards and payment cards. My guest is Parsa Kiai, Managing Partner at Steamboat Capital. What really made Parsa the ideal guest is that he has a history with CompoSecure from before the Dave Cote era, which started sometime in 2024. 

We get into all of this: the niche market of premium metal credit cards, how CompoSecure has such a dominant position in that industry, the opportunity in digital storage, and perhaps most importantly, what Dave Cote's involvement means for the company—his M&A track record and the unique corporate structure they've created. I often get asked what you can do with the lessons you take from business breakdowns, and this is a perfect example of taking the lessons and lens from other companies and looking for pattern recognition in the market. Please enjoy this Breakdown on CompoSecure.

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 ⁠Portrait Analytics⁠⁠ - your centralized resource for AI-powered idea generation, thesis monitoring, and personalized report building. Built by buy-side investors, for investment professionals. We work in the background, helping surface stock ideas and thesis signposts to help you monetize every insight. In short, we help you understand the story behind the stock chart, and get to "go, or no-go" 10x faster than before.

Sign-up for a free trial today at⁠ ⁠portraitresearch.com⁠⁠

—

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

(00:03:28) The Niche Business of Premium Metal Credit Cards

(00:05:35) Dave Cote's Impact on CompoSecure

(00:07:17) The Origin Story of CompoSecure

(00:09:11) Innovations and Growth in the Credit Card Industry

(00:11:19) The SPAC Era and New Growth Engines

(00:15:09) The Future of Digital Wallets and Security

(00:31:08) Financial Performance and Market Position

(00:42:55) Dave Cote's M&A Strategy and Resolute Holdings

(00:54:10) Lessons From CompoSecure

 This is Matt Reustle. Today, we are breaking down the industrial giant Amphenol. Amphenol pairs two of my favorite business frameworks that are often discussed on Breakdowns. Firstly, I am drawn to any company that specializes in selling mission-critical parts, which represent a small percentage of a manufacturer's total production cost. And secondly, Amphenol has a track record of M&A success underpinned by s decentralized model. There is a lot to learn from Amphenol for serial acquirers who have a proven track record and playbook for integrating businesses.

I am joined by Andy Gardner, Portfolio Manager at Fiera Capital. Andy details how Amphenol is making the nervous system for modern electronics. We delve into the foundational pillars that guided Amphenol over its 100-plus-year history, as well as how they are exposed to some of the most significant secular tailwinds today across smartphones, aircraft, medical devices, and AI. Please enjoy this Breakdown of Amphenol. 

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 ⁠Portrait Analytics⁠ - your centralized resource for AI-powered idea generation, thesis monitoring, and personalized report building. Built by buy-side investors, for investment professionals. We work in the background, helping surface stock ideas and thesis signposts to help you monetize every insight. In short, we help you understand the story behind the stock chart, and get to "go, or no-go" 10x faster than before.

Sign-up for a free trial today at ⁠portraitresearch.com⁠

—

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

(00:03:52) Overview of Amphenol

(00:04:27) Amphenol's Business Frameworks

(00:08:30) Amphenol's History and Key Themes

(00:09:57) Innovation and Custom Solutions

(00:12:06) Decentralized Autonomy

(00:14:38) Financial Discipline and Cost Control

(00:16:54) Diversification and Market Exposure

(00:18:52) Growth and Market Trends

(00:19:37) Business Divisions and End Markets

(00:33:18) M&A Strategy and Integration

(00:41:56) Financial Performance and Resilience

(00:47:21) Risks and Opportunities

(00:51:30) Lessons From Amphenol

This is Matt Reustle. Today, we are exploring the world of media deals. My guest is Blake Saunders. Blake has been in media investment banking for almost two decades. When I first met him, he was a banker, so I wasn't expecting to lean into this relationship, but I often introduce Blake to others as the banker.

We delve into the current deal landscape and some of the realities of the media market, exploring how companies are navigating this new era, and then determine who's best positioned for the next chapter. Please enjoy this Breakdown of Media with Blake Saunders.

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 Portrait Analytics - your centralized resource for AI-powered idea generation, thesis monitoring, and personalized report building. Built by buy-side investors, for investment professionals. We work in the background, helping surface stock ideas and thesis signposts to help you monetize every insight. In short, we help you understand the story behind the stock chart, and get to "go, or no-go" 10x faster than before.

Sign-up for a free trial today at portraitresearch.com

—

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

(00:04:52) Meet Blake Saunders: Media Investment Banking Expert

(00:06:53) The Evolution of Media: From Newspapers to Digital

(00:08:07) Challenges and Changes in the Media Landscape

(00:10:53) Blake's Career Shift and New Ventures

(00:12:57) The Future of Media Deals and Buyer Dynamics

(00:22:16) The Importance of Content and Premium IP

(00:27:43) The Value of Sports and IP Libraries

(00:28:33) Reimagining Content with Technology

(00:31:22) The Role of Key Individuals in Media Brands

(00:33:53) The Importance of Platform Exposure

(00:36:38) The Event Cycle Post-COVID

(00:43:18) The Impact of AI on Society and Economy

(00:48:31) The Rise of Independent Content Creators

(00:49:47) Lessons From the Media Industry

 This is Zack Fuss. Today, we are breaking down Exor. The origins of Exor date back to the end of the 19th century when Giovanni Agnelli founded the Auto Company Fiat. Over the company's 100-year-old history, a lot has changed. While some of the core assets remain the same today, Exor serves as an investment holding company. Its largest and most notable assets include Ferrari, CNH, Stellantis, Philips, and a number of other notable household-name companies. 

I am joined by Krishna Mohanraj, a portfolio manager of the International Strategy at Diamond Hill. Today, Exor is led by John Elkann, the grandson of the late Giovanni Agnelli. Elkan was named heir of his grandfather at the age of 21, and has fostered and reshaped the business to what it is today. Please enjoy this Breakdown of Exor.

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.

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

(00:03:29) The Fascinating History of Fiat

(00:05:16) Leadership Through the Ages

(00:07:29) Simplifying the Family's Assets

(00:09:31) Current Holdings and Investments

(00:11:13) John Elkan's Influence and Strategy

(00:12:39) The Role of Sergio Marchionne

(00:14:09) The Evolution of Exor's Portfolio

(00:17:08) Key Listed Investments

(00:23:29) Valuation and NAV Discount

(00:27:44) Capital Allocation and Governance

(00:28:48) Investment Approach and Financial Discipline

(00:32:37) Exploring the Private Portfolio

(00:36:25) The Partnery Transaction Case Study

(00:39:03) Future Prospects and Strategic Sectors

(00:46:21) Lessons from Following Exor

 This is Matt Reustle. Today we are breaking down the recent IPO WaterBridge. I am joined by James Davolos from Horizon Kinetics. 

We start with HK's history with these very unique businesses that are off the radar for many with TPL, Landbridge and now Water Bridge. James gets into the weeds and nuances of what this business actually doesa and why the service that they're providing is so incredibly important, particularly with US Shale and where they are in the Permian Basin. This is an interesting and timely conversation from all different angles. Please enjoy this breakdown of WaterBridge.

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.

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

(00:00:52) Overview of WaterBridge IPO

(00:02:20) Deep Dive into WaterBridge and Landbridge

(00:04:10) History and Background of Horizon Kinetics

(00:06:48) Understanding the Water Infrastructure Industry

(00:10:34) Challenges and Solutions in Water Disposal

(00:26:27) The Role of Five Point Infrastructure

(00:32:10) Understanding the Value of Land in Oil and Gas

(00:32:33) The Importance of Water as a Pure Play

(00:34:26) Next-Gen Opportunities in West Texas

(00:39:14) Challenges in Water Disposal and Market Dynamics

(00:42:06) Switching Providers and Outsourcing Trends

(00:55:48) Valuation and Growth Prospects for Waterbridge

(01:01:33) Key Lessons from WaterBridge

 This is Matt Reustle.  Today we are breaking down the Latam e-commerce Giant, Mercado Libre. My guest is Daniel Wu of Bristlemoon Capital.

I was introduced to MELI about 15 years ago when it was still the eBay of Latam, and similar to a place that you revisit after a long time away, MELI looks a lot different than those early days.

Just consider that with a $120 billion market cap, MELI is three times the size of eBay today and has clearly evolved since those early days. Daniel walks us through the business as it stands today. And how MELI paired this Amazon-like e-commerce approach with a complementary but equally impressive FinTech business to fuel the company. It's an incredibly interesting road to success. Please enjoy this Breakdown of Mercado Libre.

Read the Bristlemoon Research on Mercado Libre

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.

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
(00:01:20) Founding Story and Early Challenges
(00:03:31) Evolution and IPO
(00:04:41) Regional Dynamics and Tailwinds
(00:09:13) Business Model Breakdown
(00:12:40) Commerce Segment Deep Dive
(00:15:24) Competitive Landscape and Market Share
(00:25:14) Logistics and Fulfillment Expansion
(00:29:39) Advertising and Future Growth Levers
(00:32:39) Meli Plus Membership Benefits
(00:34:34) Transition to FinTech: Mercado Pago
(00:39:14) Credit Business Overview
(00:43:38) Managing Credit Risk
(00:52:24) Financial Performance and Growth Drivers
(00:54:08) Operating Margins and Reinvestment Strategy
(00:57:39) Risks and Challenges
(01:02:48) Leadership and Company Culture
(01:05:47) General Lessons for Investors

 This is Matt Reustle. Today, we are breaking down the real estate broker Compass. Compass itself is a fascinating business and historically a controversial stock. It was founded in 2012 by Robert Reffkin and has scaled in that short period of time to become the largest real estate brokerage in the United States. 

Geoff Collette, founder of Aeon Capital Partners, is back as a guest. After his Breakdown on Goosehead, we thought it was fitting to cover another flavor of broker. Geoff and I cover the history, some of Compass’s early pivots, and the different critiques of the company.

There is a ton of interesting stuff around Compass today. We could see a broker potentially emerge from being historically a commodity business to something more powerful.

Please enjoy this Breakdown of Compass. 

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.

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

(00:00:52) Today's Focus: Compass Real Estate Brokerage

(00:02:46) Compass's Unique Value Proposition

(00:07:10) Early Days and Evolution of Compass

(00:10:01) Financial Hygiene and Market Adaptation

(00:12:53) Current Market Position and Future Goals

(00:17:44) Industry Dynamics and Major Players

(00:25:43) Compass's Pre-Marketing Strategy

(00:47:36) Financials and Operating Leverage

(00:55:53) Risks and Future Outlook

(00:59:55) Key Lessons From Breaking Down Compass