TIVP046: TransDigm (TDG): A Conglomerate of Monopolies w/ Daniel Mahncke & Shawn O’Malley
The Intrinsic Value Podcast - The Investor’s Podcast Network
Should We Add TransDigm to the Portfolio?
Shawn and Daniel debate comfort with pricing, debt, and start a small tracking position to learn more and potentially add later.
Daniel Mahncke and Shawn O’Malley dive into TransDigm — the aerospace supplier that turned “boring parts” into a compounding machine. Built around proprietary, often sole-source components installed across nearly every commercial and military aircraft in service, TransDigm monetizes decades of aftermarket demand through premium pricing and enviable margins.
IN THIS EPISODE, YOU’LL LEARN: 00:00:00 - Intro 00:01:19 - What TransDigm does, and how was it founded 00:14:45 - What makes TransDigm’s founders and philosophy so special 00:18:05 - How TransDigm uses debt to leverage returns 00:34:34 - Why TransDigm is basically a monopoly 00:49:41 - What TransDigm’s M&A Playbook looks like 00:54:14 - Where future growth is coming from 01:16:15 - Whether TransDigm is fairly valued 01:20:06 - Whether Shawn & Daniel add TDG to The Intrinsic Value Portfolio
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
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- Howley Interview with William Thorndike at the 50x Podcast.
- Clay’s Deep Dive into TransDigm Competitor Heico.
- Clay’s Interview with Niklas Sävås about Serial Acquirers.
- TransDigm 2024 Analyst Day Webcast.
- Explore our previous Intrinsic Value breakdowns: Paypal, Uber, Nike, Reddit, Amazon, Airbnb, TSMC, Alphabet, Ulta, LVMH, and Madison Square Garden Sports.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
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