Nick Shenton, an investment professional at Artemis Investment Management, and Katie Ellenberg, Head of Investment Operations at Geneva Capital Management, dive deep into Informa's business model. They discuss how Informa excels in live events and academic publishing, showcasing nearly 1,000 industry-specific events worldwide. The duo also explores the financial dynamics post-COVID-19, the importance of first-party data, and adaptive strategies in a changing landscape, making it clear why Informa is a leader in B2B connections.

This is Zack Fuss. Today we're breaking down Fastenal. Starting as a small fastener retailer in Minnesota, the company has evolved into a mission-critical supply chain partner for its industrial customers. Today, the business sports a nearly $50 billion market cap and produces nearly $8 billion in sales. The impact of Fastenal's founder, Bob Kierlin, on Fastenal's commercial success can't be overstated. The industrial vending machine was his original idea, a vision he made a reality years later through its network of local branches, onsite locations, embedded with customers and innovative inventory management technologies.I'm joined by Delian Entchev, a portfolio manager at Aoris Investment Management. Today, we'll unpack the strategic choices, cultural DNA, and relentless customer focus that have fueled Fastenal's remarkable success. Please enjoy this Breakdown of Fastenal.Check out our new print publication Colossus Review. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.-----This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. This holiday season, go to eightsleep.com/breakdowns and use code JOYS for up to $600 off the Pod 4 Ultra when bundled. —This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform.-----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(00:07:44) Understanding Fastenal's Business Model(00:08:24) The Amazon Connection(00:10:09) Fastenal's Founding Story(00:12:06) Pivot to Business Customers(00:13:18) Empowering Employees for Growth(00:14:44) Frugality and Culture at Fastenal(00:17:33) Expansion and Evolution(00:19:07) Onsite Services and Technological Innovations(00:22:17) International Growth and Future Opportunities(00:23:16) Financial Profile and Customer Relationships(00:28:36) Customer Integration: Fastenal's On-Site Business Model(00:29:21) Three Pillars of Fastenal's Service: Experts, Inventory, and Technology(00:30:39) Customization and Proximity: Tailoring On-Site Solutions(00:31:56) Economic Relationships and Customer Spend(00:33:56) Fastenal's Competitive Edge: Value Proposition and Culture(00:37:54) Growth and Market Share: Fastenal's Expansion Strategies(00:44:52) Financial Discipline and Capital Allocation(00:50:14) Lessons from Fastenal: Transparency and In-Person Visits

Fernando De Leon, founder of Leon Capital Group, shares his insights on the intricate connections between demographics and real estate. He discusses how understanding social structures and economic disparities has influenced his multifaceted business approach. The conversation highlights how demographic shifts are reshaping real estate trends and consumer behavior, particularly post-pandemic. De Leon also touches on the evolving retail landscape and the strategic importance of logistics and infrastructure in adapting to these changes.

In this engaging discussion, Ashwin Varma, a medical student at UT Health San Antonio with a focus on pharma business, delves into the fascinating history and innovation behind Merck & Co. They explore the pivotal role of Keytruda, a blockbuster cancer drug generating over $25 billion annually. Ashwin highlights Merck's strategic approach to drug development, the challenges of patent expirations, and the company's leadership transition. This conversation shines a light on the intersection of science, business, and the complex world of pharmaceuticals.

William Heard, founder and CIO of Heard Capital Management, dives into the intricate world of American Tower, a leader in wireless communication infrastructure. He discusses the company's unique business model, emphasizing its extensive portfolio of over 224,000 towers. The conversation highlights the critical role American Tower plays in the transition to 5G and the growing demand for cellular services. Heard shares insights on financial strategies, REIT dynamics, and the challenges of international operations, providing a comprehensive overview of this pivotal player in the telecommunications landscape.

Austin Hawley, a Portfolio Manager at Diamond Hill, dives into the incredible story of AIG, exploring its near-collapse during the financial crisis and the $180 billion bailout that followed. He shares insights on how AIG, under new leadership, has transformed into a focused property and casualty insurer after divesting noncore businesses. The discussion covers AIG’s strategic shifts, including a conservative investment approach and the lessons learned from its revival, highlighting the importance of effective risk management and strong leadership in overcoming adversity.

Gregory Zamfotis, founder of Gregory's Coffee, shares his unique journey from aspiring lawyer to coffee entrepreneur in bustling NYC. He discusses the innovative spirit that drives his brand and the importance of exceptional customer experiences. Learn about the challenges of scaling from one store to forty-eight, navigating competition, and evolving in a demanding market. Gregory also dives into their culinary fusion strategy and the importance of maintaining quality across locations, all while adapting to the ever-changing coffee landscape.

Masumi Nishida, Partner and Managing Director at Dalton's Tokyo office, and Nick Bartolo, founder of Essential Partners, dive deep into activist investing in Japan. They discuss the unique opportunities presented by low equity valuations and cultural dynamics affecting shareholder activism. The conversation highlights crucial governance reforms and case studies demonstrating successful activist strategies, including management buyouts and capital allocation enhancements. Tune in to learn about the evolving investment landscape and the future potential it holds.

Rod Wong, founder and CIO of RTW Investments, and Stephanie Sirota, chief business officer at the same firm, explore the unique landscape of healthcare investing. They dive into the complex three-phase lifecycle of drug investments, emphasizing the need for specialized knowledge. The conversation also touches on the promise of gene therapy and its emotional impact. They discuss the challenges faced by pharma companies post-COVID and the cyclical nature of M&A in healthcare, revealing optimism amidst recent market shifts.

Todd Bassnight, director of equity research at Aureus Asset Management, delves into Sherwin-Williams, the paint industry powerhouse founded in 1866. The conversation highlights the company's impressive 14% earnings growth over 20 years and its unique vertically integrated model. Bassnight discusses Sherwin-Williams' tailored approach catering to the rising trend of professional painters, their strategic acquisitions, and effective capital allocation. Listeners gain insights into the competitive advantages and financial resilience of this quiet giant in the paint industry.