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.
 

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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
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UPS: Leaders of the Package - [Business Breakdowns, EP. 46]

Learn how companies work from the people who know them best. We do deep research and interview industry veterans, investment professionals, and corporate executives to explain the inner workings of public stocks and private businesses. For each company, we break down their history, business model, financial statements, secret sauce, and bull/bear case. We believe every business has lessons to teach us and Breakdowns is here to highlight them. Learn more and stay up to date at www.joincolossus.com.

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Investing

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Today, we cover the industrial conglomerate AMETEK. This is one of eight companies that Mark Leonard and his team at Constellation Software studied as they built their own empire. And it's one well worthy of a discussion as you'll hear. 
To break down AMETEK, I'm joined by Nael Fakhry, Co-CIO of the Osterweis Capital Management Growth and Income Strategy. Nael has spent a significant amount of time around AMETEK from the early 2000s until today. Please enjoy this breakdown on AMETEK.

Listen to Mitch Rales talk about Danaher on Art of Investing.
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For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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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.

This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
-----
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 | @zbfuss | @ReustleMatt | @domcooke
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes
(00:00:00) Partners
(00:01:40) Welcome to Business Breakdowns
(00:03:52) An Overview of Ametek
(00:05:17) Ametek's Diverse Product Range 
(00:12:09) Ametek’s history: From Bankruptcy to Industrial Dominance
(00:21:22) Ametek's Growth Model: Innovation, Acquisitions, and Global Expansion
(00:26:23) Understanding Ametek's Finances
(00:30:37) Exploring Revenue Growth and Margin Expansion
(00:31:10) Incremental Margins and Cyclical Nature of the Business
(00:32:07) Operational Excellence
(00:34:35) Decentralized Approach
(00:36:21) The Role of Acquisitions
(00:37:33) Challenges and Risks
(00:39:45) Capital Allocation
(00:46:55) Evaluating Cyclical Business Performance and Resilience
(00:49:27) Dividend Policy
(00:50:44) Valuation and Growth Sustainability
(00:54:41) Key Lessons
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AMETEK: Industrial Excellence - [Business Breakdowns, EP.161]

Today, we're covering a behemoth in the research market, Gartner. Executives are willing to pay up to $30,000 for reports and $50,000+ for full subscriptions so they can access insights and data to help them make business decisions, purchasing decisions, and pivoting decisions. 
Our guest is Alvise Peggion, portfolio manager at Fairlight Asset Management. He helps us cover how Gartner grew into this at-scale player, how the research and sales model has been fine-tuned over time, and where the opportunity for growth is in the future. Please enjoy this Breakdown of Gartner. 

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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.
This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
-----
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 | @zbfuss | @ReustleMatt | @domcooke
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) Deep Dive into Gartner's Business Model
(00:05:13) Understanding Gartner's Value Proposition
(00:08:40) Gartner's Competitive Landscape and Growth Strategy
(00:18:19) The Evolution of Gartner
(00:25:23) Gartner's Financial Model and Shareholder Value
(00:26:55) Understanding Gartner's Revenue and Pricing Strategy
(00:28:59) The Impact of the Pandemic on Gartner's Business Model
(00:30:52) Gartner's Resilience Through Economic Cycles
(00:34:38) The Value Proposition of Gartner to Executives
(00:36:33) Gartner's Competitive Edge and Market Position
(00:40:48) Sales Force Dynamics and Compensation Strategies
(00:42:35) Future Growth Strategies and M&A Considerations
(00:44:58) Future Growth and Strategic Focus
(00:47:09) Key Lessons from Gartner's Success
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Gartner: Compound Insights - [Business Breakdowns, EP.160]

This is Matt Reustle. Today, we break down Winmark, a major player in the reseller economy. You're likely familiar with some of Winmark’s brands, like Plato's Closet or Play It Again Sports. Altogether, Winmark operates five brands through a franchising model. 
Our guest to break down Winmark is the current CEO, Brett Heffes. During our conversation, we discuss the broader reseller economy, the dynamics of managing those brands and different franchise brands, and how Winmark thinks about growth. In the back half of the conversation, I also made sure to talk to Brett about his thoughts on capital allocation, focusing the business, and yes, on investor communication. Please enjoy this breakdown of Winmark.

Interested in hiring from the Colossus Community? Click here.
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. 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.
This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
-----
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 | @zbfuss | @ReustleMatt | @domcooke
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) Exploring the Resale Market with Windmark's CEO
(00:06:34) The Mechanics of Winmark's Franchise Model
(00:07:10) Winmark's Unique Position In The Resale Economy
(00:12:21) Franchisee Support and Business Model Insights
(00:20:44) Growth Strategies and Franchisee Expansion Philosophy
(00:24:12) A Look At The Franchisee Agreement
(00:26:57) Traits of Successful Franchisees and Common Mistakes
(00:28:42) Effective Marketing Strategies for Franchisees
(00:30:45) The Importance of Viewing Stores as Legacy Assets
(00:32:33) Renewal Rates and Franchisee Health as Key Metrics
(00:35:27) Shifting Focus From Leasing Business to Core Resale Operations
(00:41:19) Capital Allocation and Shareholder Value
(00:45:51) A Unique Approach to Investor Relations
(00:47:31) Lessons Learned From Breaking Down Winmark
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Winmark: Resale at Scale - [Business Breakdowns, EP.159]

This is Matt Reustle. We are back in the world of aviation today, breaking down Embraer. Embraer has carved out an interesting niche, manufacturing regional jets, business jets, and military aircrafts.
Our guest is Richard Aboulafia, Managing Director at AeroDynamic Advisory and long-time aviation analyst and consultant. We break down how this aviation success story grew out of Brazil, the evolution of the regional jet market, the business jet market, & tap into military aircrafts, and, of course, we cover the opportunity presented by Boeing today. Please enjoy this breakdown of Embraer.

Interested in hiring from the Colossus Community? Click here.
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. 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.

This episode is brought to you by Tegus, the go-to destination for bold investing. The investment research platform trusted by 95% of the top 20 global private equity firms just got even better. Building on their solid reputation for expert insights, Tegus has expanded to become the first true all-in-one research platform. The new Tegus makes diligence faster, easier, and more convenient than ever before. Your Tegus license gives you access to over 70,000 expert transcripts, more than 4,000 fully drivable financial models, and exclusive datasets like company management checks, industry KPIs, hard-to-find non-GAAP data, and more. Tegus is the fastest way to learn about a public or private company and the most cost-effective way to conduct investment research — now all under one roof. Learn more and get your free trial at tegus.com/patrick.
-----
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 | @zbfuss | @ReustleMatt | @domcooke
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
(00:04:49) Embraer's Strategic Positioning in the Aerospace Market
(00:05:54) The Fascinating Origin Story of Embraer
(00:08:27) Key Figures Behind Embraer's Rise
(00:09:33) Embraer's Breakthrough in the U.S. Market
(00:10:25) The Evolution of Embraer's Business Model
(00:11:07) Comparing Embraer with Boeing and Airbus
(00:12:00) Dynamics of the Regional Jet Market
(00:15:44) The Future of Regional Aviation and Embraer's Role
(00:19:24) Exploring Embraer's Defense and Military Segment
(00:24:03) Embraer's Potential Amidst Boeing's Challenges
(00:28:48) The Intricacies of Jet Manufacturing and Sales
(00:30:15) Embraer's Competitive Landscape and Challenges
(00:31:03) Navigating Currency Volatility and Hedging Strategies
(00:32:01) Defense Sector Dynamics and Geopolitical Influences
(00:33:33) Aftermarket Revenue and Replacement Cycles
(00:37:05) Embraer's Strategic Aspirations and Boeing Partnership Dynamics
(00:43:58) Bombardier's Shift and Market Dynamics
(00:46:56) Assessing Risks and Opportunities for Embraer
(00:49:05) Key Lessons from Embraer
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Embraer: Defying Gravity - [Business Breakdowns, EP.158]

Today we’re replaying our Breakdown on Boeing, hosted by Zack Fuss. We recorded the episode in September before the mid-air blowout on a Boeing 737 operated by Alaska Airlines and the subsequent management changes, but it serves as a useful overview of the commercial airline industry writ large, how we got here, and what the future might look like. It also pairs well with the breakdown we’re releasing next about Brazilian-based airplane manufacturer Embraer. So look out for that, and in the meantime, enjoy this episode on Boeing.

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 | @domcooke

Show Notes
(00:03:08) - (First question) - An introduction to the aerospace industry and Boeing's role in it
(00:06:11) - Boeing's business model today
(00:10:22) - How the aerospace industry settled into a duopoly
(00:13:00) - Costs associated with airplane manufacturing
(00:14:32) - The life expectancy of an aircraft
(00:15:16) - Dealing with the supply coordination problem
(00:18:09) - The Boeing and McDonnell Douglas merger
(00:21:21) - Problems Boeing has faced over the past five years
(00:21:14) - How leadership turnover has permeated through Boeing
(00:28:33) - Competitive headwinds Boeing can face
(00:33:40) - How Boeing will grow in the aerospace industry
(00:38:09) - Boeing's eVTOL strategy
(00:42:12) - What is impacting the profitability of the business
(00:44:08) - The biggest challenge facing the aerospace industry
(00:45:27) - Lessons learned from studying Boeing
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UPS: Leaders of the Package - [Business Breakdowns, EP. 46]

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