I'm Zack Fuss and today we are breaking down UPS. With over 100 years of history, it's a business we all know as consumers and one many of us interact with on a daily basis. But in investing circles, UPS carries far less relevance and attention share despite its large market cap. To break down UPS and its rich history, I am joined by former Transport Analyst Matt Reustle. Please enjoy this breakdown of UPS. 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 | @zbfussShow Notes[00:02:37] - [First question] - The footprint of UPS in the US economy[00:04:11] - What relevant metrics analysts use to understand UPS’ value[00:06:57] - How logistics networks work and operating leverage on their fixed assets[00:10:43] - UPS’ origin story and key differences between it, Amazon, and FedEx[00:18:24] - Whether or not Amazon is consuming the market or if the market is growing[00:22:20] - Decreased return on capital and the roadmap to increase returns going forward[00:25:14] - Making a decision to lean into their network and what it meant for their customers[00:27:33] - The importance of management and needing outsider management[00:31:40] - Capital investment programs and what Amazon’s growth means for UPS[00:34:41] - Secular changes versus historical cyclicality of fulfillment businesses[00:36:35] - Competitive impacts Amazon and USPS could have on UPS’ future success[00:42:26] - Why cross-border delivery is such a lucrative aspect of this market[00:42:51] - Lessons for investors and builders when studying UPS’ story

I’m Zack Fuss, and today we are breaking down Twitter, a business that needs little introduction. Founded by Jack Dorsey in 2006, Twitter has become one of the most visited and influential platforms in the world. Yet, despite its rising social status, investors and users have been left frustrated by the company’s pace of innovation and shareholder returns. To help me break down Twitter’s business, I’m joined by anonymous professional investor, @Compound248. Please enjoy this breakdown of Twitter. 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 | @zbfussShow Notes[00:02:40] - [First question] - The history of Twitter and where we are today[00:10:44] - The size and scope of Twitter and what drives their business and unit economics[00:18:54] - Reconciling differences between Twitter and competitive social media platforms[00:24:36] - Bridging the gap between Twitter and their competitors[00:29:38] - What about their legacy system had to be rebuilt in order to grow again[00:34:35] - Unique shareholder dynamics, activists in the boardroom, and leadership change; Compound's open letter to Management[00:43:35] - Capital allocation and how investment analysts look at and measure their ROI[00:49:00] - Efforts to innovate around new use cases and Twitter’s opportunity set[00:55:30] - What builders and investors can learn from studying Twitter’s story 

This is Jesse Pujji and today we are breaking down ViacomCBS. This episode has a different format - you'll hear from both an investor and from company management. Chris Marangi from Gabelli Asset Management starts us off with a history of ViacomCBS. He goes deep into the dynamics of content creation, curation, and distribution, hitting home the value of IP. Then he helps break down how ViacomCBS is transitioning from a shrinking linear business to a growing streaming business. Next, I sit down with the CFO of ViacomCBS, Naveen Chopra. He shares his views on the business today, how he thinks about capital allocation, and how streaming will evolve for ViacomCBS. Please enjoy this Business Breakdown. 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 | @zbfussShow Notes - Pt 1 with Chris Marangi[00:03:31] - [First question] - What is ViacomCBS[00:04:10] - What a typical media conglomerate looks like[00:06:45] - The scale and size of ViacomCBS today [00:09:03] - Starting as a radio business and becoming a diversified conglomerate[00:11:25] - What the competitive landscape looked like fifteen years ago [00:14:07] - Economics of a typical cable network channel like ESPN or MTV[00:16:23] - Key differentiators between a good and a bad channel revenue-wise[00:17:22] - The important roles movies play and how the film industry works writ large[00:18:12] - Durable competitive advantages in producing strong content [00:19:26] - How much of their market cap is their catalog[00:20:04] - Adopting a streaming model and the impact of this inflection point[00:24:33] - Thoughts on customer acquisition in movies and streaming services[00:25:33] - What has to go right for their market cap to double in the next decade[00:27:55] - What will have gone wrong if they don’t grow over the next decade[00:28:26] - Lessons for entrepreneurs and investors when studying ViacomCBS’s story[00:29:33] - Learn more about ViacomCBS and the cable industry; Cable Cowboy Pt 2 with Naveen Chopra[00:30:27] - [First question] - Overview of the different businesses within ViacomCBS[00:34:07] - Size of the broadcast arm of ViacomCBS’s business and the costs of running it[00:37:23] - How wide the range of content expenses can be [00:39:35] - Thoughts on making movies and the business model pre-pandemic[00:42:47] - Is the box office opening night really that important?[00:44:40] - How much box office attendance is down post-pandemic[00:46:19] - Same day releases for streaming and box office can help acquire subscribers[00:51:45] - Leveraging intellectual property to generate revenue[00:53:23] - How much Netflix invests in content compared to ViacomCBS and competitors[00:54:11] - Thoughts on the business model for streaming service revenue[00:58:01] - Scaling Paramount+ to compete and compensate for pandemic impacts[01:02:16] - What he’s most excited about for ViacomCBS and Paramount+ looking forward[01:06:00] - Things in the macro-environment that could be good and bad for ViacomCBS[01:07:54] - Lessons for entrepreneurs and investors when studying ViacomCBS’s story

This is Jesse Pujji, and today we’re breaking down Peloton. Peloton was founded over ten years ago with the idea of making the best in-person gym classes available at home. By delivering eye-catching hardware and compelling content, it has since become the largest interactive fitness platform in the world with over 6 million members. Peloton’s rise has not been without challenges, however, and the business’s economic model is under debate as we speak. To break down Peloton, I’m joined by my brother Vinny Pujji, partner at Left Lane Capital, a growth-stage investment firm focused on consumer businesses. We discuss Peloton’s success in creating a new fitness category, the impact of the pandemic on its financials, and why it may make sense for Peloton to build its own music label. Please enjoy this breakdown of Peloton. 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 | @zbfussShow Notes[00:03:37] - [First question] - What Peloton is and what they do[00:04:59] - How most consumers experience their brand[00:05:40] - Their customer base and the size of their business today[00:06:22] - The founding story and what lead to Peloton [00:10:10] - What business they started with and how they’ve expanded their offerings[00:12:03] - Complexities of direct to consumer hardware distribution[00:13:01] - Scope of the global fitness and wellness market writ large[00:14:42] - Unit economics of Peloton’s business[00:19:03] - Contributing factors that draw on their cash and working capital [00:22:46] - What would solve their current liquidity problem[00:25:11] - Their latest treadmill product and their subscription product[00:26:22] - Thoughts on why management has struggled with their forecasts[00:29:44] - The competitive landscape as it exists today and how they compete[00:33:16] - Whether or not Peloton will experience a boom and bust cycle[00:35:18] - What Peloton does very well that separates them from their competitors[00:36:52] - Gamifying fitness and incorporating a live feature[00:38:59] - How music plays into their business and its role in their future [00:41:45] - Whether they are a subscription or hardware business[00:43:59] - What has to go right in order to scale their market cap in the next decade[00:45:08] - Their approach to marketing and what drives their engine[00:47:17] - What will have gone wrong if Peloton doesn’t survive the coming decade[00:50:28] - What can we learn from Peloton

This is Jesse Pujji and today we are breaking down the emerging industry of cannabis. After spending decades as an illegal drug, US states have begun to make regulatory changes and build legalized marijuana marketplaces. To help me break down this market, I am joined by Jeff Hoffman of Marathon Partners Equity Management. Jeff is co-portfolio manager of a fund, which invests in US public cannabis companies. We discuss exactly what those regulatory changes look like, the difference between federal and state laws, and companies across the value chain that are showing up in public markets. I hope you enjoy this breakdown. 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 | @zbfussShow Notes[00:03:40] - [First question] - What is cannabis and the current size of the industry today[00:05:44] - Differentiating between THC and CBD [00:06:46] - Whether or not the whole market is growing writ large[00:08:08] - The history of cannabis, the changing legal landscape, and key players today[00:10:51] - What the argument was for making cannabis a schedule 1 narcotic[00:11:48] - Is cannabis addictive, objectively speaking?[00:13:27] - The differing levels of when cannabis is or isn’t legal [00:14:05] - Overview of the value chain involved in getting cannabis to a dispensary[00:15:18] - What an MSO is, how their operations work, and the marketplace today[00:20:31] - Regulatory catalysts that would allow this market to thrive[00:23:19] - The income statement of an MSO, their expenses, and how they differ from traditional businesses[00:26:44] - Different business models for MSOs depending on their geography [00:29:31] - How the economics of MSOs compare to mom and pop shops [00:31:30] - Normalizing margins and incentives to compete on price or participate in discount wars[00:33:48] - D2C, mobile-first, and delivery trends influencing distribution[00:35:53] - Whether or not cannabis is considered perishable [00:36:43] - How the finance industry is evolving around cannabis [00:38:44] - The role COVID played in helping the cannabis industry grow[00:41:03] - Will cannabis see a pullback in public interest as the world returns to normal[00:42:25] - Form factors to consider as the industry shifts from medical to mature markets[00:44:20] - What will have to happen for the cannabis market to excel in the coming decade[00:47:07] - How M&A might play out as the market continues to evolve[00:49:06] - Lessons for builders when it comes to the cannabis industry[00:51:54] - Learn more about the cannabis industry; marijuanamoment.net 

Today’s episode is part business breakdown and part biology breakdown as we explore Finch Therapeutics and their novel work on the microbiome, which plays a crucial role in regulating our immune system. To help break down these topics, I’m joined by Mark Smith, co-founder and CEO of Finch Therapeutics. Mark is a leader in the microbiome field and the perfect person to cross the bridge between business and science. As Mark outlines, we’ve made a lot of progress in living longer, but we are yet to make significant steps to living better. In our discussion, we explore what the microbiome is, why it’s so important, and the role that Finch plays in helping patients transform their lives. We then turn to the business side of developing therapeutics drugs and what Mark has learned there.Please enjoy this breakdown of Finch Therapeutics. 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 | @zbfussShow Notes[00:02:55] - [First question] - What is the microbiome?[00:04:56] - Where the microbiome is inside the body[00:06:42] - Overview of what bacteria is in general terms and what they do for us[00:10:44] - What would happen to a human that didn’t have any bacteria[00:13:29] - Inflammatory auto-immune diseases and widespread antibiotics[00:14:32] - How seasonal allergies and gut bacteria are related[00:16:32] - Key contributors that have led to our current understanding of the microbiome[00:18:48] - Whether an absence or dominance of bacteria is more concerning[00:20:47] - The state of stool sample diagnostics today[00:22:52] - Tools available today for widespread microbial treatment and repair[00:24:48] - The science behind probiotics and whether or not they’re worth it[00:27:00] - Fecal transplants and supporting empirical evidence of their efficacy[00:31:39] - Addressable conditions that Finch Therapeutics seeks to solve[00:35:27] - What the end game looks like and the timeline to achieve it[00:40:05] - Is there a future where we use these therapeutics preventatively?[00:41:22] - Key risks that could threaten the growth of Finch in the coming decade[00:43:10] - What it’s been like running a company that is so different than its competitors[00:45:51] - Whether or not the regulatory and iterative pace of therapeutics will increase[00:48:19] - How much his lifestyle has changed given what he knows now in this field[00:50:50] - Other innovations taking place in the microbiome and related therapeutics[00:52:28] - What most has his attention outside of his field in health science today[00:53:24] - Learn more about the microbiome; I Contain Multitudes (book)[00:53:42] - The kindest thing anyone has ever done for him

Today, we’ll be breaking down the London Stock Exchange, now referred to as LSEG. LSEG is a nearly £40 billion market cap business that plays an integral role in the infrastructure of the world’s financial markets. Since 2000, there have been at least 11 attempts at mergers and takeovers of the business by other exchanges and banks. The company itself made a notable acquisition when it closed on its M&A of Refinitiv from Blackstone in January of this year. The company offers a wide range of services, financial markets, and data exchanges, which make it an essential player in the world’s markets.To break down the business, Zack Fuss is joined by Nick Shenton of Artemis, a UK-based fund manager.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[00:02:47] - [First question] - The industry LSEG operates in and its role within it[00:05:37] - How to think about LSEG as a business and what drives their growth[00:07:33] - The model that allows for such high profit and how its pieces work together[00:14:21] - Overview of the data analytics side of their business [00:18:29] - Trading & banking as a key component of their data analytics revenue[00:22:09] - Its 300-year history and what has led them to become such a dominant player[00:29:25] - Thoughts on the Refinitive asset they’ve acquired and its role in future success[00:33:04] - Key factors that allow LSEG to sell in adjacent markets and their competitive advantage[00:38:57] - Drivers behind the growth of the digital financial market industry[00:41:26] - Structural risks that could impede LSEG’s growth over the coming years[00:45:29] - Simplifying their story to help investors better understand their underlying growth[00:47:35] - Lessons for builders and investors when studying LSEG’s story

Today, we are breaking down The National Football League or, as most know it, The NFL. It’s a sport that dominates American Sundays from late summer into early winter. Behind what happens on the field is a $15 billion dollar business with a unique operating and ownership structure and many stakeholders.  To help break down the NFL, Jesse Pujji is joined by Jay Kapoor. Jay is currently General Partner of venture fund VSC Ventures, and prior to his career as an investor, Jay worked in the League Strategy office at the NFL. During the conversation, we break down some of the fascinating dynamics of the NFL, including how it dominates linear TV, the unique revenue considerations for the league and its teams, and what makes the NFL stand out relative to other sports. I hope you enjoy this breakdown of the NFL. 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[00:02:18] - [First question] - What is the NFL?[00:03:26] - The size and scale of the NFL as a business[00:04:55] - Points of growth on the league side and the team side[00:06:42] - The growth rate of the NFL over the past five years[00:07:24] - How many people are watching the NFL and the size of their audience[00:09:53] - The structure of the NFL compared to other major sports leagues[00:14:08] - Distribution of the revenue generated by media rights[00:15:53] - Other factors that make the NFL’s model unique [00:18:11] - How the NFL came to dominate the landscape of American sports[00:21:26] - When the NFL became bigger than the MLB and why[00:23:00] - How viewership and media rights have changed over the years[00:24:52] - Complexity of scheduling games and creating scarcity[00:26:14] - How the NFL Schedule is Created[00:27:43] - Additional sources of revenue at the league level[00:30:54] - Major costs to operate the NFL at the national level[00:31:50] - Contributing factors that make annual operating costs $1.5 billion[00:32:29] - How much it costs to run an NFL game[00:33:35] - Major drivers and ways to increase the topline of the business[00:36:09] - How much of the league revenue share is distributed to team owners and players[00:39:06] - Seat sales, boxes, and sponsorship revenue[00:40:40] - Who owns stadiums and an overview from a management and cost perspective[00:42:43] - Non-player related operating costs[00:45:46] - Operating leverage as an owner in this business[00:47:08] - What a commissioner is and the governance model of the NFL[00:51:31] - Overview of an executive team beneath the owners[00:53:01] - Collective Bargaining Agreements [00:57:15] - How enterprise value is created and why it’s growing so fast for the teams[00:59:11] - His perspective on comparing teams to assets generating revenue multiples[01:00:51] - Defining relevance in regards to the NFL and what it means for the future[01:04:39] - Plans to embrace a D2C model and the impact streaming might have on them[01:06:56] - How the Superbowl became such a pivotal sporting event and why they made it[01:11:35] - What will have to go right in order to grow exponentially over the coming decade [01:17:34] - Potential risks and concerns that could negatively impact the NFL’s growth[01:22:21] - A big lesson we can learn from the NFL for entrepreneurs[01:23:29] - Lessons for investors when studying the NFL[01:24:48] - Learn more about professional sports and the NFL; The Game Plan; Tailgating, Sacks, and Salary Caps (book)

I’m Zack Fuss and today we’re breaking down NextEra Energy. NextEra is America’s most valuable energy firm and consists primarily of two businesses; a high-quality regulated utility and a renewables business that is the world’s largest generator of wind and solar energy.To help break down the business, I’m joined by Mark Tomasovic, an investor at Energize VC. In our conversation, we discuss the structure of the energy market, what’s changed in the renewables space over the past twenty years, and how NextEra takes advantage of its cost of capital advantage. Please enjoy this breakdown of NextEra Energy. 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[00:03:16] - [First question] - Mark’s background and how he thinks about the energy markets [00:03:46] - A broad overview of the electricity market and how it’s structured[00:05:22] - The value chain and production line of energy from facility to customer[00:06:59] - What informs how much an energy company is allowed to earn[00:09:16] - Unregulated versus regulated markets and the risks and benefits of both[00:11:29] - How the retail electric market looks today and alternative production methods[00:12:40] - NextEra’s business fundamentals and their current scope and scale[00:14:45] - The two business arms of NextEra[00:16:00] - Inputs and costs of the low cost regulated utility side of NextEra[00:18:33] - NEER being the world’s largest generator of wind and solar[00:19:43] - How they’re able to get contracts and how they work [00:20:03] - Comparison of revenue generated between their different branches[00:21:26] - How the regulated and unregulated arms work together for NextEra vs its competitors[00:22:30] - What their most important benchmark is and thoughts on gross margin and profits [00:24:33] - Natural cost of capital advantage given the growing focus on ESG [00:25:33] - How COVID impacted the energy space, specifically in electricity [00:28:20] - Conventional energy production becoming more expensive in the near future [00:30:10] - How reliant NextEra is on government subsidies  [00:31:20] - Where they spend all their revenue, the price of projects, and ROI[00:33:01] - How they evaluate projects [00:34:19] - Structural differences in renewable energy business models today[00:36:18] - What could happen that could negatively impact NextEra’s growth[00:38:22] - Considering risks when underwriting turbines [00:39:15] - Is nuclear power a potential tail risk?[00:40:05] - Being forward-leaning when adopting digital technology and innovation[00:41:23] - Lessons that can be learned from NextEra for builders and investors

Today, we’re breaking down Novocure, a global oncology company that has pioneered a new approach to cancer treatment. For over 100 years, the tools used to fight cancer have largely remained unchanged, but there are promising signs of a renaissance and Novocure is at the vanguard of that charge. To explain the state of cancer research and how the business has developed over the past twenty years, I’m joined by Bill Doyle – Novocure’s Executive Chairman. Please enjoy this breakdown of Novocure. 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[00:03:05] - [First question] - The current state of cancer treatment today writ large[00:05:43] - What cancer is and how it becomes life threatening[00:06:38] - Why uncontrolled cell growth is so bad[00:07:27] - The main three ways we currently treat cancer [00:11:29] - Whether or not there are targeted ways we can treat cancer like mRNA[00:14:08] - How we’ve historically detected cancer and what future detection could look like[00:17:12] - Death rates of cancer in the US annually and the business side as it stands today[00:18:20] - Key players in the cancer treatment space that serve patients[00:19:13] - The pioneering technology that Novocure created to treat cancer[00:22:38] - The mechanism that allows their tech to target the right cells[00:25:35] - Overview of the actual procedure that takes place with their therapy[00:28:36] - The impact and results of their new treatment method[00:33:37] - A future where we can take this in a prophylactic and preventive sense[00:34:44] - Why this approach to cancer treatment isn’t more widely known and accepted[00:38:09] - Financials of Novocure and the opportunities it presents for their business[00:43:10] - How they spend their R&D dollars and horizontal and vertical growth[00:48:01] - Unique ways how they spend their revenue to scale their business[00:51:05] - Biggest criticisms of the size and scope of Novocure[00:52:18] - Broader business lessons learned while building a cancer treatment company[00:55:23] - The future of healthcare more generally and what has him most excited