Unraveling the Infrastructure of Wireless Communication

Today we are breaking down American Tower: the REIT, the communications giant, and the infrastructure asset. To break down American Tower I'm joined by William Heard, founder and CIO of Heard Capital Management. William founded Heard Capital in 2011. 

Today, the firm manages $2 billion in assets, holds about 15 to 20 names, and has very specific criteria for investing in companies. We cover AMT from all angles—the long life, physical assets that underpin the business, the contracted and highly visible revenue stream, the secular growth story, and some of the micro dynamics. American Tower represents so many things in the economy, so it made for a very interesting and wide-ranging conversation. Please enjoy this Breakdown of American Tower. 

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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Show Notes

(00:00:00) Welcome to Business Breakdowns 

(00:03:42) Understanding American Tower's Infrastructure

(00:04:41) Market Size and Share

(00:05:44) Ownership and Construction of Towers

(00:06:51) Investment and Growth in Tower Infrastructure

(00:11:32) Data Centers and Their Importance

(00:14:34) Leasing Model and Revenue Structure

(00:17:02) Management and Financial Strategy

(00:18:42) Acquisitions and Growth Strategy

(00:21:39) Management Teams and Strategic Priorities

(00:22:35) Capital Allocation and Dividend Strategy

(00:24:09) REITs and Market Dynamics

(00:26:49) International Operations and Challenges

(00:29:19) Carrier Spending and Revenue Streams

(00:37:57) Risks and Competitive Landscape

(00:38:58) Lessons from Breaking Down American Tower