Business Breakdowns
@bizbreakdowns
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Official account of the Business Breakdowns Podcast. Diving deep into a single business and finding the key lessons for investors and operators. @joincolossus
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Joined April 2021
In April, we launched Business Breakdowns to dive deep into a single company with investors and operators that know it best. 30 businesses in, let’s recap what we’ve found.
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We started creating Breakdowns last fall. We tried and failed 20 times before recording one that we were proud to publish. This morning, we passed through one million downloads. Thank you to everyone who has listened to one of our Breakdowns, it means everything.
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One year of Business Breakdowns. 53 companies down, thousands to go. So many lessons. Learn them all @ .
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Wired called it “The $150M Machine Keeping Moore’s Law Alive.”. Meet ASML’s EUV Machine - one of humanity’s greatest engineering feats. It took 17 years and €6B to develop and can print 20,000 transistors on an area the width of a human hair. Here is how it works:. 1/ 50,000
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Breakdowns inventory check. 89 done. 1000s to go.
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Would this interest you in a business?. - 15% revenue CAGR for 30 years.- 100x return since IPO.- Family run. Welcome to Kingspan, a building materials business born out of Ireland that makes the best insulated panels in the world. You'll find their work in Apple's
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Ryanair market share in Europe:. 2004: ~4%.2008: ~8%.2023: ~16%
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Last week we looked at ASML. Today we explore Applied Materials. Despite being the two biggest equipment makers in the semiconductor industry, they don't really compete with each other. ASML is the clear leader in lithography equipment. Applied Materials product range is far,
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We have covered 117 companies on Business Breakdowns. One of our favorites? Rolex. Here are three fascinating anecdotes about the legendary watchmaker:. 1/ Rolex goes to incredible lengths to hide the scale of its operations. From the outside, their facility in Geneva looks
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The scale of The Coca-Cola Company is hard to comprehend. 1. They sell 2.2 billion servings every day. 2. The sell in every country around the world, except for Cuba and North Korea. 3. They own 26 individual billion dollar brands.
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No episode today so a chance to recap our Breakdowns so far this year. Old, new, big, small, thriving, surviving. They cover the whole spectrum.
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Today, we break down Constellation Software. Radically decentralized, singular founder, gold standard comp plan, incredible returns, the list of reasons to study this biz goes on. @zbfuss and Chris Cerrone of Akre Capital Management explain it in detail.
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Legendary investor Ed Wachenheim succinctly explains why the U.S. homebuilding industry is attractive. "It will take 20 years to build the number of homes we need."
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Today, we break down Toast. The operating system for 80,000 restaurants across the US. @breakfastbybill and @zbfuss explain the business in detail. Restaurants are a lot more complex than you probably think and Toast handles it all. Will does a great job explaining how the
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Larry Mendelson and his two sons, Eric and Victor, took over HEICO in 1990. If you invested $10,000 at that time - you'd have over $6,000,000 today. A key operating principles has been "push trust down the organization and treat employees as owners". Rather than just say it,
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Exciting milestone. We have now done 150 Business Breakdowns. Thank you for listening!
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Today, we break down Cintas, America's largest uniform rental company. For ~$1.50 per worker per day, Cintas collects, cleans, and replaces uniforms in hospitals, hotels, and even semiconductor fabs. The company's origins date back to the Great Depression, when its founder,
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Set your watches. This Wednesday, we break down the most luxurious watchmaker in the world, Patek Philippe. Our guest is an expert who has spent a career around the brand, including 10 years working for Patek.
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Today, we release a 2 part breakdown on the $2.1 trillion Private Credit market. First, @ReustleMatt speaks with Oaktree’s Co-CEO, Armen Panossian. Then he talks with Josh Clarkson, MD at Prosek Partners. They cover history, demand, supply, products, regulation, & much more.
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Luis Von Ahn, Duolingo’s founder, has an incredible backstory. His aunt was kidnapped for 7 days when he was growing up in Guatemala. As a graduate student at Carnegie Mellon in the early 2000s, he invented CAPTCHAs - those puzzles designed to distinguish humans from bots. He
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The year in Breakdowns. Which were your favorites?
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Our portfolio of semiconductor breakdowns is growing nicely. - Cadence.- AMD.- Qualcomm.- ASML.- Applied Materials.- Entegris. Which others would you love to learn about?
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HEICO would dispute the idea that “you get what you pay for”. They’ve sold over 80 million parts to airlines since entering business in 1957. Typically, HEICO parts sell at a 30%+ discount to the competition. But unlike their competition, they have never had an issue. 0 service
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Investors might argue Twitter broke down a while ago. But they haven't seen anything yet. Tomorrow, it gets a real Breakdown…
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A 60 second Intel breakdown. Can it pull off one of the great turnarounds in corporate American history?
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Today, we break down Lifco. Lifco is a high-performing conglomerate from Sweden. It is a fascinating business, best exemplified by its previous CEO, who bought shares immediately after being fired because the stock was down 8%. Since 1995, Lifco has compounded its capital
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Today, we break down Mitsubishi. Mitsubishi is a Japanese trading company, known locally as Sogo Shosha. You may have heard about the trading companies courtesy of Berkshire Hathaway, who own ~10% of the largest 5, including Mitsubishi. Mitsubishi has 10 different business
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Hermes has been on our wish list for a long time. We're very excited to share this conversation between a long-time investor and @patrick_oshag.
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We've looked at VISA, Adyen, Block, Afterpay, and Wise. Today, we break down the payments marketplace, PayPal. @ElliotTurn joins @domcooke to explain PayPal's evolution from PalmPilot payments to super app ambitions and back again.
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Enzo Ferrari didn't believe in work-life balance. He built Ferrari's test track around his house.
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Today, we break down AMETEK, an industrial conglomerate that makes highly engineered, mission critical products. Think electrical connectors for submarines, solar x-ray monitors for NASA rockets, and wires for controlling commercial airplanes. AMETEK is one of eight companies
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Today, we break down Vulcan Materials. Vulcan is the largest aggregates producer in the US. They dig quarries, pull out big rocks, crush them into small rocks, and sell that ‘aggregate’ to construction companies. They operate 400 quarries across 22 states, supplying the
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In his 2016 letter, Mark Leonard identified 8 High-Performance Conglomerates (HPCs) that his team studied. Our colleagues on @artofinvest covered Danaher earlier this week. We cover another tomorrow.
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Moats don't come much wider than the water around Moody's. "These types of businesses seem to be, in our view, perpetually undervalued. Investors tend to systematically underprice the boring, high-quality toll collectors like Moody's. That's why Moody's has generated
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Meet da Vinci, Intuitive’s $1.5 million surgical robot. 8,500 of them are being used in operating theaters globally. They performed 2.3 million procedures last year. Through a small finger width incision, they give surgeons better vision and dexterity to work on patients,
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Today, we cover British American Tobacco. The company was founded in 1902 when the UK’s Imperial Tobacco Company and the American Tobacco Company formed a joint venture. It is the 2nd largest tobacco business in the world. @evantindell joins @ReustleMatt to break it down.
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The three largest insurance brokers in the world vs. the S&P 500. What’s so special about the brokerage industry?. Find out in this week’s breakdown of the 3rd largest broker, AJ Gallagher.
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As the library of Business Breakdowns grows, collections are formed.
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Today, we break down Embraer. Embraer is an unlikely story. It was founded in 1969 by the Brazilian government as a state-owned company. It is the only business & country to successfully enter the commercial aviation space since the 60s. A key component of its success is that
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Today, we break down Sherwin-Williams. Founded in 1866, this vertically integrated paint company has quietly compounded at 14% per year for the past 20 years (26x return). @ReustleMatt is joined by Todd Basnight of Aureus Asset Management to explore its pro consumer focus,
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Trader Joe's is not your typical grocer. Less choice, very few brands, higher wages, and no online offering. Yet, they have a highly profitable history and are adored by customers. Put on your Hawaiian shirt and dive in with @zbfuss and @cristinagberta
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5 reasons why you'd be hard-pressed to find a better business model than FICO:. 1. Market Position:. FICO scores are used in 90% of the credit lending decisions in the US and by 95% of the country’s top 100 financial institutions. 2. Pricing Power:. A decision on a mortgage of.
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What an answer from @scuttleblurb on what he's learned from ODFL. "The real compounding takes place beneath the surface. an invariant commitment to superior service."
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Today marks 200 episodes in the archive. Thank you for listening
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Today, we break down Fastenal. What started as a small retailer of nuts and bolts in Minnesota has evolved into a mission-critical supply chain partner for its industrial customers. The business sports a nearly $50 billion market cap, produces nearly $8 billion in sales, and
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Today, we break down a $27 billion biotech company set to produce over $1 billion in sales this year - argenx. With a little help from llamas, argenx develops antibody-based medicines for patients suffering from severe auto-immune diseases – when the immune system mistakenly
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Intuitive Surgical makes robots that perform surgeries. 8,500 of their da Vinci robots are being used in the world right now. They offer many benefits compared to human hands. Today, @ReustleMatt and Joe Thomas explain how they work and how they’ve built a $140B business.
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Earlier this year, @patrick_oshag asked @dougleone for the best 3 CEOs he knew. 1. Frank Slootman.2. David Vélez.3. @elonmusk. Today, we explore Nubank. The bank David built in the face of Brazil's goliath incumbents. The Brazilian-based neobank has gone from nothing to
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Today, we dive into the wet world of marinas. A few numbers to anchor the expectations: .- 10,000 marinas in the US.- Estimated $6bn market .- 12:1 ratio of registered boats to available space.- Over 90% of US marinas are NOT institutionally owned. @zbfuss hosted operator David
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Today, we break down the largest homebuilder in the US, D.R. Horton. @ReustleMatt is joined by a very special guest, Ed Wachenheim. Ed has covered the industry since the 80s. Few are better qualified to explain how D.R. Horton works and has evolved. He put on a masterclass.
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Tomorrow's episode has been a long time coming. We're excited to unbox it.
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Chip Wilson started @lululemon in 1998. The first store was a clothing rail at the back of a yoga class he attended. 25 years later, it's a $47 billion public business that has changed activewear forever. While its clothes might feel seamless, the business story is far from
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Today, we cover HEICO. HEICO makes replacement parts for the airline industry and to break it down, @ReustleMatt is joined by Eric Ruden of Ironvine Capital. Thanks to @invest10east for their support of this episode.
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The NYC coffee shop equation:. What does it cost to open a store?.How many cups a day to break even?. Full episode tomorrow: @GregorysCoffee & @ReustleMatt on launching, scaling, and innovating.
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It’s rare to hear a CEO call his own company a “burning platform” or share that “every investment we make, we destroy value.”. But that is how new CEO, Tufan Erginbilgic, described Rolls-Royce when he took over last January. The company was founded in 1906 by Charles Rolls and
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You ever hear someone say “that’s a good problem to have”?.Here’s one:. $1.5bn = Patek’s estimated annual revenue.$8.0bn = Patek’s estimated second-hand annual trading. Patek get’s 0% of that $8bn secondary market. New Patek’s greatest competition is vintage Patek. Yet what.
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Ed Wachenheim was born in 1937. We can only hope to be as bright and competitive as him in our late 80s. Here's how he signed off his episode, after he finished explaining how D.R. Horton worked.
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Is Vanguard the best example of compounding ever?. From our Breakdown on the passive investing behemoth with @EricBalchunas.
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Today we get into the weeds of South Korean e-commerce. Our guest @Speedwell_LLC is back to cover Coupang. When we create our Business Pivot Hall of Fame, we have a spot saved for the CPNG transition from a Groupon clone to the Amazon of South Korea. Enjoy!
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Today, we break down Mineral Resources. Chris Ellison started Mineral Resources in the 90s with $10K in the bank and $50K on a credit card. It has become one of the most innovative mining businesses in the world. Since IPO ~20 years ago, the share price has compounded at +28%
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Today's episode is on Arthur J. Gallagher, the 3rd largest insurance broker in the world. The business has grown every year for the past 6 decades. (With one exception, 2020). Learn how industry dynamics, M&A, and the Gallagher Way have powered this compounding machine.
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Touching down today on Business Breakdowns: Boeing. ✈️. Constructing an aircraft is one of the single most complex and challenging industrial tasks humans do. Boeing does this roughly 700 times a year. The aerospace industry’s survivability and its ability to evolve, given the
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Today, we break down Duolingo. The company was founded by Luis von Ahn in 2011 and has helped over 500 million people learn languages since then. Before starting Duolingo, Luis invented reCAPTCHA, which he sold to Google in 2009. Duolingo's mission is to offer free education,
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Today, we break down CNX Resources. CNX is the lowest-cost producer of natural gas in the US. In the last decade, it has been transformed by a new CEO, Nick DeIuliis, and Chairman, Will Thorndike. - They focused the business entirely on natural gas in Appalachia, spinning off
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Today, we break down Nintendo. Ryan O'Connor (@AboveAvgOdds) - founder of CrossRoads Capital - is a connoisseur of the cartridge. He joined us for episode 3 of our console miniseries. We cover the rich history, evolving business model, and Switch 2 implications. Enjoy!
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Today, we break down Gartner. Gartner provides research for leaders at big companies. It was founded in the late 70s by Gideon Gartner to advise businesses on IBM products. Today, it services 18,000 clients who, on average, pay Gartner $225,000 a year. Since 2004, the company
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We're releasing a special episode today on the CHIPS Act. @ReustleMatt talks to Todd Fisher, a KKR veteran who is now CIO of the CHIPS Act office. They discuss supply chain issues, incentives, capital allocation, supply/demand dynamics, and lots more.
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Today, we break down American Tower. AMT defines "critical infrastructure" with over 224,000 communications sites across 6 continents. William Heard from Heard Capital joined @ReustleMatt to cover what makes it such a unique business and REIT security:. Revenue Visibility? 98%
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Today, we break down Intel. Todd Ahlsten, CIO of Parnassus Investments, has covered semiconductors since the 90s. He was an ideal guest to capture what went wrong, what changed, and what to look for going forwards. Thanks to @invest10east for their support of this episode.
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Roper was born in the late 19th Century. Today, it is the 7th largest software company in America. Much of that transition from Industry to Software came about in the 21st Century and can be traced back to Brian Jellison. @zbfuss and Joseph Shaposhnik explain this remarkable
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In the watch world, all roads lead to Patek Philippe. @ReustleMatt spoke to former Patek employee and vintage watch expert, John Reardon, to understand what makes this business so special. Live now in your podcast player of choice.
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Thought-provoking exhibit from Michael Mauboussin (@mjmauboussin) and Dan Callahan’s latest paper. The average hurdle rate companies use is twice as high as it should be.
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WeChat is one of the most important apps in the world. - The default operating system for life & business in China (1.3bn MAUs). - Founded inside of Tencent in 2011, disrupting their web messaging service QQ. - Maniacal focus on trust through UX. @conniechan breaks it down.
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Why did Buffett invest in Japan's trading companies?. Our guest, Krishna Mohanraj, thinks the reason may have changed.
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Some facts about the company we're looking at tomorrow:. (1) 65-hour work week.(2) Motto: Do More, Earn More.(3) Shares are up 1000x since ‘08.
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What better way to celebrate 100 episodes than with an episode on cricket's most impressive business. @eddiecowan joins @domcooke to break down the Indian Premier League. The stories and stats behind the @IPL are amazing.
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Today, we break down Arm. The company's chip architecture is licensed into nearly 30 billion chips annually, earning ~8¢ per chip with 90%+ gross margins. From mobile devices to hyperscale data centers, Arm's IP is embedded in virtually every electronic device. @jaygoldberg
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We're finishing the year with a two-part Climate mini-series. Today, @patrick_oshag talks to @nanransohoff about Carbon Removal. - Why we need carbon removal.- How the tech works.- How to kickstart the market
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This week’s Breakdown will be out on Friday. The business built its own foundry, employs Nobel Prize winning scientists, and has produced some of the best marketing of all time. Watch out for it.
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Today, we break down Winmark. The company owns 5 brands that buy and sell used clothing and goods, including Plato's Closet and Play it Again Sports. Winmark has been in business for 35 years, keeping 1.7 billion items out of landfills since 2010. In the past 24 months, it has
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Dolby is everywhere. In your phone, computer, sound bar, TV, cinema, car. But what is Dolby and how does the business work? . This is a classic 'Breakdowns' business: you know it but you can't explain it. We hope this changes that.
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Demain.Mañana.Morgen.I morgon.Domani.Yarın.Tomorrow.
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Today, we break down Axon. Axon is the leading provider of Tasers, body cameras, and software for law enforcement agencies. Their integrated product suite aims to protect life, improve accountability, and streamline evidence processing. Officers currently spend up to half
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A quick Quarry primer. How much do they cost, how long do they take to build, and how long do they last?. They have long lives. Vulcan’s Norcross quarry in Atlanta, for example, has been in operation since 1970 and still has 49 years of supply left based on today’s volumes.
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What started as a publication rating railroad bonds has evolved into a globally networked language. Moody's history dates back to 1909 when John Moody planted the seed for what would become a $75 billion dollar business.
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Today, we break down Siemens Energy. Siemens Energy is a big player in the world's energy market. It makes equipment for power plants, electrical grids, and factories - with a particular focus on clean energy. As a leader in wind power, hydrogen tech, and smart grids, the
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MTN is the largest Telco in Africa, one of the 10 largest in the world by subscribers, and also one of the largest Fintechs in the world. @zbfuss and Ben Isaac tell you everything you need to know.
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"If you had to design an ideal business from scratch, @FICO has most of the elements that you would look for. Dominant market position, tremendous pricing power, great value, operating leverage, and a natural network effect. You really can't design a better business on paper."
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