Brett Larson from NZS Capital, an expert in the industrial economy, joins to discuss Cognex, a leader in machine vision technology. They dive into Cognex's strategic focus on specific customer segments and its unique cyclical revenue model. Larson explains how advancements in deep learning and recent acquisitions position Cognex in the competitive landscape. The conversation also highlights Cognex's distinct corporate culture, the impact of economic cycles on financial performance, and the challenges of navigating international markets.

Guest Brett Larson, investor at NZS Capital, breaks down Trane Technologies, discussing its long corporate history, dynamics of residential and commercial HVAC, the unique consolidated industry, and Trane's success and dominance. Topics include cost breakdown and value-based pricing, revenue potential and growth drivers in HVAC, analysis of business system and operations, and the impact of mergers and acquisitions in the industry.