Learn how companies work from the people who know them best. Each episode dissects a single business - from its origins and model to its financials and competit...
Watsco: Air Apparent - [Business Breakdowns, EP.209]
Today we are breaking down Watsco, the market leader in HVAC distribution with a unique value proposition. If you've ever had an air conditioning issue, there's a decent chance it was a Watsco distributor on the other side of that phone call.
My guests today are Lucy Adams, Investment Director at Caledonia Investments, and Alan Murran, Co-Head of Public Companies at Caledonia Investments. Lucy and Alan help track the history of Watsco like the initial pivot from manufacturer to distributor and how Watsco formed relationships with the major OEMs like Carrier. We also dissect their reputation for a strong culture, with what has to be one of the most unique employee compensation plans in effect. Please enjoy this breakdown of Watsco.
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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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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
(00:03:34) Watsco's Role in HVAC Distribution
(00:04:40) Watsco's Business Model and Services
(00:06:42) Real-World Example of Watsco's Impact
(00:09:28) Market Position and Competition
(00:12:55) Historical Evolution of Watsco
(00:15:52) Exclusivity Agreements in HVAC Industry
(00:18:05) Residential vs. Commercial Operations
(00:21:04) Growth Strategies and M&A Philosophy
(00:26:45) Carrier Joint Venture and Future Opportunities
(00:29:40) Watsco's Multi-Brand Acquisition Strategy
(00:31:34) Gross and Operating Margin Expansion
(00:33:24) Pricing Strategies and Market Dynamics
(00:35:16) Recurring Revenue and Business Model
(00:37:36) Cash Flow Management and Capital Allocation
(00:40:52) Technology Adoption and Digital Transformation
(00:45:50) Incentive Programs and Ownership Culture
(00:50:45) Risks and Competitive Landscape
(00:55:02) Lessons from Watsco
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55:54
Apollo: Connoisseurs of Complexity - [Business Breakdowns, EP.208]
Today, we are breaking down the global alternative asset manager, Apollo. I reflected on my personal experiences with Apollo for this episode, and there's a saying that hard work can beat talent when talent doesn't work hard. Well, Apollo has talent, and Apollo works really damn hard. They will do everything they can to protect their capital, so if you're on the other side of the table from them, you never feel fully comfortable.
I am joined by Hunter Hopcroft, a financial analyst and writer based in New York. We get into what makes Apollo, Apollo, and Hunter share the backstory of how it was born out of Drexel Burnham and Michael Milkin’s DNA. We get into some of the early deals, the theme of craving complexity, how they differ from the KKRs or Blackstones, and the future of the industry.
Please enjoy this Breakdown of Apollo.
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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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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
(00:02:49) Apollo's Current Landscape
(00:07:45) Apollo's Founding and Early Days
(00:10:39) Key Deals and Strategies
(00:17:09) The 2000s and Financial Crisis
(00:22:10) IPO and Public Transition
(00:25:47) Leadership Transition to Mark Rowan
(00:31:20) Rowan's Vision and Athene Merger
(00:35:12) Investment Strategies of Alt Managers
(00:36:28) The Athene Merger and Its Implications
(00:38:30) Rowan's Breakthrough in Spread Generation
(00:39:49) Innovative Asset Origination Platforms
(00:44:42) Private Credit and Market Dynamics
(00:46:49) The Future of Apollo and Private Credit
(00:52:09) Evaluating Apollo's Business Model
(01:05:33) Reputation and Evolution of Apollo
(01:08:50) Lessons from Apollo
Today we are breaking down machine vision leader, Cognex. Cognex Corporation is an American manufacturer of machine vision systems, software and sensors used in automated manufacturing to inspect and identify parts, detect defects, verify product assembly, and guide assembly robots. It is not your typical reoccurring revenue story. They are a self proclaimed cyclical that has tended to focus on a specific customer segment over time, looking for S curves that might trigger their next growth era.
Our guest today is Brett Larson from NZS Capital. Brett and I covered Trane Technologies last year, and today he gives us a different angle on the industrial economy with Cognex. We get into the history of machine vision and how Cognex is a factory player. Please enjoy this business breakdown on Cognex.
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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 sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.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) Learn About Finley
(00:04:28) Overview of Cognex and Its Products
(00:07:29) Market Size and Growth
(00:08:23) Competitors and Market Position
(00:12:35) Sales and Customer Base
(00:13:48) History and Evolution of Cognex
(00:17:36) Deep Learning and Edge Learning
(00:22:42) End Markets and Applications
(00:26:32) Financials and Market Cycles
(00:28:54) Culture and Leadership
(00:39:13) Valuation and Risks
(00:43:54) Key Lessons From Cognex
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43:45
Rolls-Royce: Turbines and Tribulations - [Business Breakdowns, REPLAY]
Today, we are breaking down Rolls-Royce. A fair warning to those expecting to hear about luxury automobiles, that division was split from this business in the 1970s. But as we discuss the history of Rolls-Royce on this episode, you will hear how the DNA of this company still ties together from its early 1900s origins.
Our guest is Graeme Forster from Orbis Investments. Graeme walks us through the core business of Rolls-Royce in the aerospace market, the evolving duopoly of the wide-body aircraft engine manufacturers, and the ups and downs of properly capturing the economic opportunity. I really appreciated Graeme's intellectual honesty in discussing Rolls, and I expect you will, too. Please enjoy this Breakdown on Rolls-Royce
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 sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.
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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) Learn About Finley
(00:04:54) Overview of Rolls-Royce
(00:08:35) History and Evolution of Rolls-Royce
(00:10:44) Rolls Royce's Aerospace and Defense Ventures
(00:11:57) Challenges and Nationalization
(00:14:43) Current Business Segments and Market Position
(00:20:57) Service Agreements and Profitability
(00:27:41) Engineering Excellence vs. Commercial Strategy
(00:31:26) The Aerospace Business Ecosystem
(00:33:11) Rolls-Royce's Margin Profile
(00:35:13) Challenges and Changes in Management
(00:37:28) Cost Structure and Revenue Optimization
(00:38:32) Engine Performance and Development
(00:40:04) Market Dynamics and Competition
(00:49:13) Future of Nuclear Reactors
(00:52:46) Capital Allocation and Management
(00:56:08) Lessons from breaking down Rolls-Royce
Today, we are replaying one of our favorites, breaking down the industrial conglomerate AMETEK. AMETEK is a great pairing with last week's episode on Jack Henry. These are two businesses with very long track records executing a playbook.
AMETEK 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.
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 sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.
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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: @bizbreakdowns | @zbfuss | @ReustleMatt |
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes
(00:00:00) Learn about Finley
(00:02:52) An Overview of Ametek
(00:04:17) Ametek's Diverse Product Range
(00:11:09) Ametek’s history: From Bankruptcy to Industrial Dominance
(00:20:22) Ametek's Growth Model: Innovation, Acquisitions, and Global Expansion
(00:25:23) Understanding Ametek's Finances
(00:29:37) Exploring Revenue Growth and Margin Expansion
(00:30:10) Incremental Margins and Cyclical Nature of the Business
(00:31:07) Operational Excellence
(00:33:35) Decentralized Approach
(00:35:21) The Role of Acquisitions
(00:36:33) Challenges and Risks
(00:38:45) Capital Allocation
(00:45:55) Evaluating Cyclical Business Performance and Resilience
(00:48:27) Dividend Policy
(00:49:44) Valuation and Growth Sustainability
(00:53:41) - Key Lessons
Learn how companies work from the people who know them best. Each episode dissects a single business - from its origins and model to its financials and competitive edge. We uncover the lessons behind every success story. Learn more at www.joincolossus.com.
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