This is Matt Reustle and today we are breaking down Polish grocer, Dino Polska. This wasn't a name on our radar at Colossus but the more we dug into the story, the more intrigued we became. It starts at the macro level in Poland, a country that transitioned away from communism in 1990 so the oldest private businesses are just north of 30 years old. And on a micro level, Dino operates a rigid playbook where they target small towns and replicate the same format store, which drives better efficiency and allows them to reinvest into new locations. To break down Dino I am joined by Jon Cukierwar of Sohra Peak Capital Partners. Jon wrote an extensive presentation of Dino which can be found on our website. We break down the unique dynamics of the Polish consumer, how Dino differentiates from its competitors, and Dino's founder of mystery Tomasz Biernacki. Please enjoy this breakdown of Dino Polska. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:03:21] - [First question] - The fall of communism in the 1990s and how it shaped the business landscape of Poland today [00:05:43] - Dino’s unique and differentiating characteristics as a grocery store [00:08:55] - The current market landscape of superstores, proximity, and mom and pop grocers in Poland [00:12:36] - The size and scale of Dino as a business today  [00:14:01] - Key players and main events in Dino’s history[00:20:03] - Where Dino’s margins fall relative to their competitors[00:22:47] - Their relationship to the construction side of their business[00:26:34] - The payback period of a new Dino store and how long until they reach maturity[00:29:09] - Owned land and other factors in their real estate strategy[00:31:10] - How much of their accessible market opportunity has been seized and their potential growth rate over the coming years[00:34:20] - What their growth rate would have to be to ensure they reach their projected scale[00:36:23] - How he values grocers as an investor in both Poland and the US[00:38:12] - Cyclicality in revenue streams and what impacts them[00:40:26] - Ways Dino finances their growth and if any capital has been given back to shareholders in dividends[00:42:13] - Potential risks and threats to their business[00:45:10] - How he grew and built conviction with risks in an emerging market[00:47:48] - The main lessons he’s learned from studying Dino Polska

Today’s business needs little introduction. Berkshire Hathaway is one of the largest businesses in the world and run by arguably the most famous investors of our time, Warren Buffett and Charlie Munger. To break down the business, I’m joined by Chris Bloomstran. Chris is the President and CIO of Semper Augustus and has gone as deep on Berkshire as anyone I’ve ever encountered, making him the perfect person to do this with. Given the reams of excellent content already out there about Buffett and Berkshire, we focused our conversation on the specific elements that make this business so special. Please enjoy this breakdown of Berkshire Hathaway. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:26] - [First question] - What Berkshire has taught the world about float[00:14:00] - How much of Berkshire's success was predicated on insurance [00:23:17] - Whether or not Berkshire’s capital source has been more important than stock selection [00:30:04] - Why there’s such a disparity between good stock pickers and holding companies[00:36:24] - What the major signposts of durability are when evaluating companies[00:38:29] - Acquiring Alleghany and using that as a case study that reflects their values[00:47:22] - The role that energy has played in Berkshire’s growth [00:59:54] - Thoughts about the major pieces of Berkshire and the future of the company [01:05:46] - Important lessons learned about investing and business from Berkshire’s story

Today we are running a special episode in our Business Breakdowns feed. My guest is Alex Danco from Shopify - who you may remember from our Business Breakdown on Shopify in 2021. Our conversation focuses on a new concept, tokengated commerce, and how Shopify is building around this theme. Given the market turmoil in crypto assets, we talk about true use cases of tokengated commerce and why blockchain technology is unlocking something that was not possible otherwise. This episode originally ran in our Web3 Breakdowns feed and represents an interesting case study of corporations embracing blockchain technology. Please enjoy my conversation with Alex Danco.   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 Coinbase Prime. Coinbase Prime combines advanced trading, battle-tested custody, financing, and prime services in a single solution. Clients have used our comprehensive investing platform to execute some of the largest trades in the industry because they are the only publicly-traded company with experience trading and custodying crypto assets at scale. Get started with Coinbase Prime today at coinbase.com/prime.   -----   Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag    Show Notes [00:02:16] - [First question] - What Shopify itself is as an ecosystem and service [00:05:14] - An example of interoperability and the power of platforms outside of Shopify  [00:07:02] - How interoperability and platforms come together [00:12:08] - Where a a constraint-standard resulted in failure  [00:14:26] - Why Shopify is so heavily invested in tokengated commerce [00:17:10] - Lessons learned about the scarcity function of tokens and how they’ll work [00:20:34] - Whether or not Shopify will be building their own crypto wallet   [00:24:48] - The important role blockchains play in tokengated economics [00:28:16] - Overview of the mechanics and offering Shopify is building  [00:32:16] - Tokens help establish protocol adoption [00:34:27] - Which blockchains and protocols will be mostly used in Shopify’s endeavor   [00:36:33] - Why can’t it be key-gated instead of tokengated [00:39:00] - Conjuring demand and how Shopify will create demand for their new system [00:45:46] - The differences between someone's identity and a token holder [00:47:55] - Signals that suggest tokengated commerce will be a big thing  [00:51:02] - Why this concept hasn’t been more widely adopted already [00:54:39] - When there will be a solution to easily create and distribute tokens [00:56:39] - Where things will go from here  [00:59:35] - Reasons why this might not have taken off in five years

I am @Compound248 and this is the next installment in our Business Breakdowns mini-series focused on Digital Infrastructure. In this episode, we will talk about a company that delivers that airbourne experience, Gogo. Known for its eponymous inflight WiFi service, Gogo is frequently misunderstood, having undergone a transformation to focus purely on the business, or private, aviation industry. It sells equipment that gets installed on a private aviation airplane, and then, in infrastructure like fashion, monetizes that equipment with high margin service revenue for decades. We’re fortunate to be joined by Oak Thorne, who has led Gogo for 20 years into the success it is today. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:04:02] - [First question] - Gogo’s history and how his history intersects with it[00:08:03] - His background and what lead him to joining Gogo [00:10:01] - A primary focus on US airlines and high-end air travel specifically[00:12:33] - What the competitive landscape looks like today and how many planes they have[00:14:15] - Whether the formerly unaddressable planes will make their way into their fleet [00:16:04] - Their product offerings today and the differences between them [00:19:26] - Overview of their business economics and their digital infrastructure [00:21:31] - Unit economics and labor and install costs[00:24:17] - CapEx, service revenue, and a projected 20% system growth [00:25:55] - Cost structure margin on their recurring service revenue [00:27:25] - Momentum of business growth year-over-year[00:28:29] - How the ATG network actually works and how the 5G connection improves it [00:30:44] - What portion of their business comes from aftermarket installations[00:32:18] - Competitive nature of this sector and if someone could come after Gogo[00:40:42] - Describing the differences between GeoSatellite and Elon’s Starlink[00:46:19] - Reasons why Starlink might become a competitor[00:48:56] - How Gogo’s 5G and global broadband product are offensive and defensive [00:51:24] - Portion of new US delivery aviation planes built with in-flight WiFi solutions[00:55:01] - How long he anticipates this growth runway to continue [00:56:27] - Potential risks to Gogo from a legal and regulatory perspective [00:59:50] - Cyclicality of their clients and suspended business periods  [01:04:57] - Two key lessons for others attempting to build and lead a company 

This is Matt Reustle and today we’re breaking down Diploma. Diploma is a specialist distributor of medical equipment and industrial components listed in the UK. It’s a business you’re unlikely to be familiar with and, at first glance, may appear mundane. But dig a little deeper and you’ll find a high-quality operator generating significant free cash flow through a mix of organic and inorganic growth channels. To break down Diploma, I’m joined by Charlie Huggins, an investor in the business and Head of Equities at WealthClub. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @bizbreakdowns | @JoinColossus  Show Notes[00:02:23] - [First question] - The history of Diploma, what they do, and what’s attractive about their business model[00:04:39] - Size and scale of the business and their market capitalization[00:07:03] - Overview of what their life sciences business vertical looks like[00:10:00] - The cyclicality of the seals and controls business verticals [00:13:45] - Returns on invested capital and thoughts on the capital intensity of seals[00:15:06] - What allows their businesses to keep growing and what characterizes a strong acquisition target for Diploma[00:19:14] - An example of how Diploma fits into the value chain[00:21:24] - How Diploma acquires for low multiples when making acquisitions [00:23:41] - How they drive quantitative and qualitative returns in their acquisitions[00:27:35] - What management is like at Diploma and their longevity in the business[00:33:19] - Overview of their competitive landscape [00:35:27] - What the business does with extra cash flow in the absence of M&A activity[00:38:01] - What Charlie finds special about Diploma and what has him excited for the future[00:41:22] - The key risks in each vertical and what worries him about them [00:48:07] - Lessons for investors, business executives and operators from the Diploma story

This is Dom Cooke and today we are breaking down the PGA Tour. Alongside the four standalone majors, the PGA Tour is the pinnacle of professional golf. It’s where the best players in the world earn their living and tee it up for their place in golfing history. To break down the business behind the stars and action you see on the PGA Tour, I’m joined by Neil Schuster, co-founder of golf media business No Laying Up.Editor’s note: this conversation was recorded before the field for this week’s inaugural LIV golf invitational event was announced.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:27] - [First question] - What the PGA Tour is, it’s size today, and how it generates revenue[00:06:04] - Defining what the Tiger Tax is and its implications [00:08:04] - When the PGA Tour was founded and the key moments leading up to today[00:15:40] - Deane Beman: Golf’s Driving Force; Changing the format of the Tour into a non-profit [00:17:24] - Being a member run organization and player influence over the board[00:18:23] - Overview of the business structure and model of the PGA Tour [00:22:27] - Reasons for the 72 hole stroke-play format  [00:24:43] - The distribution of over a billion dollars of revenue[00:27:59] - Why their capital allocation is unique and their incentive programs[00:31:37] - Unique pension structures of their deferred compensation plan[00:34:30] - The Champions Tour as a secondary way to make a living after the PGA tour[00:36:07] - Rival SGL and PGL tours and how they are trying to disrupt the PGA tour[00:44:42] - Having a legacy name advantage to bring players and capital in [00:47:47] - Relying on growing viewership, ratings, and new sponsors over time[00:52:48] - Paths to becoming a more successful tour amidst the new startup tours[00:55:07] - Netflix’s partnership with the PGA Tour to try and bring in new viewers[00:56:54] - The most surprising lessons about the PGA Tour he’s learned   

Today, we are breaking down Anduril. Anduril builds high tech defense systems for the US Department of Defense and its allies. Crucially, it does so with speed that emanates from Silicon Valley. Founded in 2017 by Palmer Luckey, who previously built and sold Oculus to Facebook, Anduril has achieved the rare feat of challenging the established order in the defense industry. To break down Anduril, I’m joined by the company’s CEO and co-founder, Brian Schimpf. We discuss the history of the defense industry, how Anduril’s business is counter positioned against the legacy cost-plus model, and what Brian has learned about selling to the DoD. Please enjoy this breakdown of Anduril. For the full show notes, transcript, and links to mentioned content, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:52] - [First question] - The history of defense technology and the technological and competitive landscape when he set out to build Anduril[00:08:22] - What the early experience was like when approaching the government and finding an early adopter[00:12:44] - Necessity being the mother of invention when it came to developing drones[00:16:37] - What it’s like to develop hardware and software products at the same time [00:20:26] - How the defense business complex works economically and overview of the detailed cost plus model[00:24:44] - The state of military technology and military conflict today writ large[00:31:10] - Are we heading to a future where warfare is mostly machine against machine? [00:33:34] - Comparing the ghost drone system to predator drones[00:38:40] - Guiding principles as a firm and deciding on their product roadmap[00:43:25] - An overview of their product lineup and what they’ve built so far [00:48:13] - Having an open innovation policy to promote competition[00:49:37] - The nuance of politics when it comes to building and running their business[00:51:56] - Most difficult decisions he’s had to make through Anduril’s history [00:53:51] - How he overcame Anduril’s lowest points and biggest challenges [00:58:38] - Thoughts on effectively compounding hardware innovation [01:02:23] - A moment he’s most proud of and regrets most in Anduril’s history[01:04:20] - Lessons learned from observing Palantir and SpaceX [01:08:37] - The kindest thing anyone has ever done for him

This is Matt Reustle and today we are breaking down the 150 year-old investment bank – Goldman Sachs. From the outside, investment banks like Goldman are black boxes of profits and the embodiment of “Wall Street”. But as with most things, the reality sits somewhere between the polarizing designations. Goldman is neither a vampire squid nor are they doing God’s work. To break down Goldman, I am joined by longtime financials analyst Marc Rubinstein. For loyal listeners, you will remember Marc from our popular episode on Blackstone. For those who haven’t listened, I think you’ll enjoy that one in tandem with this.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:03:24] - [First question] - Blackstone: Beyond Buyouts; What an investment bank is, what they do, and how they make their money[00:06:48] - Matt Taibbi’s Rolling Stone article; Why Goldman is perceived as the industry villain[00:10:34] - The scale of Goldman today and how it looked fifteen years ago in light of the financial crisis[00:13:55] - Industry size that Goldman operates in and their growth factors [00:14:58] - How investment banking deals result in profits for Goldman and their ties to macro environments [00:17:38] - Generating revenue and bottom line dollars in sales and trading as a market maker[00:21:01] - Margin differences between investment banking and trading [00:23:52] - Asset management and profits generated from supervising over a trillion dollars in assets[00:26:30] - How investors value banks as a whole and the metrics and multiples used[00:29:35] - The differences between varying levels of assets and how a bank’s balance sheet looks like today compared to the past[00:34:40] - Whether or not there’s a way to quantify the differences of leverage and stepping into the consumer space[00:39:02] - The leadership at Goldman over the years and what David Solomon brings to the table[00:44:31] - Goldman’s outlook, the bull case and key drivers for success in the future[00:49:34] - Build versus Buy versus Partner; other potential competitors and risks to Goldman [00:51:32] - Thoughts on the strength of their core business and classifying them[00:54:53] - Lessons for investors when studying Goldman’s story and what he’s changed his mind to as he’s worked in this industry for so long

This is Matt Reustle and today we’re breaking down Baytex Energy. With oil prices hovering over $100 a barrel, we thought it was a particularly good time to revisit this sector. Why Baytex Energy? The 80,000 barrel a day producer certainly isn’t a household name. And with a market cap just north of $3 billion, it’s far from a mega-cap. But Baytex has production in five different operating areas spanning across the US and Canada. Some of those fields are mature, some are emerging. The company has been allocating cash flow between unconventional wells, conventional wells, and debt reduction in recent years. When you take Baytex and everything that’s happening within that business, it offers a perfect lens to view the historically boom and bust industry of oil production. To help break down Baytex, I’m joined by oil and gas investor, Josh Young, of Bison Interests. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:03:19] - [First question] - The journey of producing a barrel of oil and how Baytex fits into the oil production ecosystem[00:05:29] - How $100 is dispersed amongst the value chain when a barrel of oil is purchased[00:08:03] - A broad overview of Baytex today and its history[00:13:05] - The production of a barrel of shale oil and unique characteristics of shale[00:16:25] - The main drivers of increased productivity and optimization in oil production[00:19:11] - What breaking even looks like today on a barrel of oil[00:23:20] - Describing the decline rate of a shale well compared to conventional plays [00:25:22] - Overview of the differences of oil blends and quality coming out of Texas versus Canada[00:30:51] - A snapshot of what Baytex’s Canadian operations look like[00:35:38] - The other major Canadian assets Baytex has [00:38:28] - The heavy oil decline rate of Canadian oil wells compared to US shale wells[00:39:59] - What makes Clearwater such an exciting and interesting opportunity for Baytex[00:43:30] - Identifying where oil might be and what that process looks like[00:47:02] - His process as an investor in evaluating new projects like Clearwater[00:56:00] - How to ascribe value to a project like Duvernay compared to Clearwater[01:00:05] - Baytex’s approach to hedging and how it differs from the rest of the industry[01:02:15] - How the management team at Baytex manages capital allocation[01:05:33] - Why return capital to shareholders [01:07:41] - Metrics he uses to value an oil production company or adjacent business[01:11:19] - Rules of thumb to consider when it comes to evaluating the asset base[01:14:05] - Main risks that could drive stock underperformance[01:16:38] - Lessons and takeaways from his time investing and working with Baytex

I am Compound248 and today we are pleased to announce and kick-off a Business Breakdowns mini-series focused on Digital Infrastructure. This inaugural episode of the Digital Infrastructure Business Breakdowns mini series will begin with one of the broadest, most important companies in the industry, DigitalBridge. A company that is part private equity firm, part asset owner, and part infrastructure operator of assets across the digital infrastructure spectrum. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:04:22] - [First question] - What digital infrastructure means and how it came to be[00:09:58] - The nuance of digital infrastructure and how big the addressable opportunity set is[00:12:47] - How DigitalBridge became the company it is today [00:19:06] - How he thinks about portioning the fee and value creation economics between shareholders and employees[00:23:15] - The differences between their earlier funds and current funds from how the economics split within the team and owners[00:25:53] - A look into their balance sheet today between funds and operating assets[00:28:39] - How big the digital infrastructure space could be in the future from an IM standpoint [00:30:41] - Their US and non-US opportunity set and how towers and mobile infrastructure compare and contrast across their verticals[00:34:03] - How DigitalBridge professionals operate with portfolio companies and how they add value to them[00:38:47] - Changes in standard growth and the slow downs in the Hyperscale or Telco side of the business[00:40:37] - If Edge competes with their core assets and how it works across all of their portfolio companies[00:42:21] - Where we are on the 5G rollout and how it touches their businesses[00:43:39] - His view on building out Edge and data center capacity from a DigitalBridge standpoint[00:45:35] - How the competitive environment and risk and return profiles have shifted [00:46:33] - How inflation affects the business and how he manages lease renewal[00:50:19] - If Elon Musk building Starlink is a threat or an opportunity [00:52:12] - How DigitalBridge thinks about consumer facing digital infrastructure [00:54:48] - What could happen to lead to their success and business evolution in the future [00:56:28] - Two key lessons he’d give as advice to someone looking to build and lead a company