ASML: Competing with Moore’s Law - [Business Breakdowns, REPLAY]
This conversation was originally released in June of 2023.
Today we return to the semiconductor value chain with one of the most important companies in modern technology: ASML. The company began life as an unwanted spin-out from Philips with no real product and little expectation of success. Today, it builds the only machines capable of manufacturing the most advanced chips in the world.
To break down ASML, I’m joined by Tom Walsh, portfolio manager at Baillie Gifford. Tom walks through how photolithography works, what’s happening inside an extreme ultraviolet machine, and how a small Dutch company came to dominate one of the most complex technologies ever built.
This breakdown pairs very well with our breakdowns on AMD, Qualcomm and Cadence. And I'd also highlight the Founders Podcast episode #8 on the Intel Trinity. Please enjoy this breakdown of ASML.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Timestamps
(00:00:00) Update on ASML and Welcome to Business Breakdowns
(00:04:01) Intro
(00:04:50) The ASML back story
(00:08:20) A deep dive into what semiconductors and Lithography are
(00:10:10) Alternate business directions ASML could have pursued
(00:21:45) How large ASML is in the industry today
(00:12:43) A look into the management team over time
(00:16:09) Moore’s Law and the key components of chip production
(00:17:15) Overall size of the machines manufactured
(00:18:20) The evolution of UV light and its important role in the advancement of Lithography
(00:22:35) Other competing companies within the field
(00:25:16) A detailed look into the cost of production industry wide
(00:26:10) Unlocked innovations associated with the development technology
(00:27:38) The life cycle of a lithography machine
(00:29:10) Revenue gained from new versus refurbished machines
(00:29:33) The cyclicality of the ASML machine revenue
(00:31:38) Potential production limitations due to capacity
(00:33:06) Margin profile and how ASML sets prices
(00:34:39) What the concentration of customers looks like
(00:39:06) Reasons why an acquisition has not taken place to date
(00:40:48) He explains where investor cash flow is directed
(00:42:07) An investors perspective on ASML opportunities
(00:44:30) How milestones in new technology are regulated and measured
(00:47:46) Potential business risks
(00:51:27) Lessons he’s learned from studying ASML
Moncler: The Après Playbook - [Business Breakdowns, EP.218]
Today we are breaking down Moncler, the high-end outerwear brand. Known for their down jackets and stylized M logo, it’s a mix of style and substance that blends into the brand history and evolution of Moncler.
I am joined by Chris Davies, investment manager at Baillie Gifford to cover Moncler’s story, particularly in the hands of Remo Ruffini. We get into its push to define luxury outerwear and extend outward into other product categories while keeing that core DNA of fashion and function. This is a particularly interesting episode for anybody interested in the luxury market generally, and Moncler’s push to carve out its own niche. Please enjoy this Breakdown on Moncler.
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For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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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
(00:04:31) Moncler’s Iconic Products
(00:06:47) Historical Evolution of Moncler
(00:11:48) Moncler’s Three Pillars
(00:24:58) The Stone Island Acquisition
(00:32:39) Estimating the Luxury Outerwear Market
(00:33:58) Moncler’s Market Influence and Growth
(00:35:48) Defining Quality in Luxury Brands
(00:36:47) Moncler’s Down Integrity and Customer Experience
(00:41:46) Managing Supply and Demand in Luxury
(00:47:18) Capital Allocation and Growth Opportunities
(00:55:03) Risks and Challenges in the Luxury Market
(00:58:46) Key Lessons from Moncler
20VC: The 10 Question Framework a $217BN Manager Uses to Make Investment Decisions | Lessons from Turning Down Stripe, Coinbase and Losing Money on Northvault | The Bull Case for Bytedance | How Anduril Could Be a $200BN Company with Peter Singlehurst
Peter Singlehurst is the Head of Private Companies at Baillie Gifford. He has led research on a wide range of private investments including Epic Games, Bending Spoons, Anduril, Solugen, Scopely, and Grammarly, as well as a number of private holdings that have since transitioned to the public markets such as Airbnb, Affirm, Warby Parker, Wise and Tempus AI.
In Today's Episode with Peter We Discuss:
04:24 How I Accidentally Came to Manage One of the Largest Private Investment Firms in the World
07:29 What I Learned Losing 100s of $Ms
10:22 The 10 Questions Baillie Gifford Needs to Answer to Make an Investment
15:53 Why We Did Not Double Down in Stripe and Turned Down Coinbase
33:10 The ByteDance Investment Case
36:33 Why Would Any Good Company Go Public Today
39:19 Growth Stage Investing Trends
40:46 How Anduril Becomes a $200BN Company
45:39 Is 2024 Different to the Madness of 2021 and 2022
47:18 The Decision-Making Process Inside a $217BN Firm
49:00 How Does Re-Investment Decision-Making Differ from Original Investments
55:56 Future of Growth Equity Investing
58:12 Quick Fire Questions
SpaceX: Rocket Ship - [Business Breakdowns, EP.194]
Today we are breaking down SpaceX. Luke Ward from Baillie Gifford was the perfect match for this episode, as he and his team first invested in SpaceX in 2018.
We cover the story of SpaceX and its scientific magic, but we really key in on the business model. We focus on the cost curve of launches, separating manufacturing from reusability. Luke gets into how Starlink represents a key component in making the Starship program and the broader economic model click. We then use our intellectually honest galaxy brains to imagine what the space economy could look like in the future and Luke is very open and honest about the risks and rewards with such a capital-intensive mission.
Please enjoy this Breakdown on SpaceX.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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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
(00:05:53) SpaceX: A Blend of Business and Technology Innovation
(00:06:30) Baillie Gifford's Investment Journey with SpaceX
(00:09:53) Challenges and Innovations in Space Launch Costs
(00:11:24) The Rise of Private Space Companies
(00:15:23) SpaceX's Reusability and Cost Efficiency
(00:18:25) Starship: The Future of Space Travel
(00:26:05) Starlink: Revolutionizing Satellite Internet
(00:32:01) The Potential of Space-Based Manufacturing
(00:36:31) Competitive Advantage of Starship
(00:37:19) Management and Culture at SpaceX
(00:39:55) Government and Commercial Markets
(00:40:45) Starlink's Future and Connectivity
(00:44:11) SpaceX's Long-Term Vision
(00:51:11) Regulatory and Launch Challenges
(00:54:49) Valuation and Investment Insights
(01:02:23) Lessons from SpaceX
Rakuten: Rewiring Japan's Digital Economy - [Business Breakdowns, EP.182]
Today, we are breaking down the Japanese internet conglomerate Rakuten. I'm joined by Matt Brett, the lead manager of the Japan Trust at Baillie Gifford, which has continuously invested in Rakuten since 2005.
Rakuten is the unique Japanese conglomerate that wasn't started over a hundred years ago and instead was part of the late nineties global internet boom. Matt helps explain what was different about that internet boom in Japan and how Rakuten was really shaped by it. We get into the various business lines, from traditional e-commerce to the credit card business, and more, but notably how the loyalty point system has become the glue connecting everything together.
We also cover Rakuten's major investment into the mobile phone market, and Matt gives a very intellectually honest look at why this is such a huge debate for Rakuten, investors, and anybody looking at the name. Please enjoy this breakdown of Rakuten.
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For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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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
(00:04:52) Overview of Rakuten
(00:06:15) Rakuten's Business Model and History
(00:13:32) Expansion and Challenges
(00:15:36) Challenges and Lessons from Overseas Expansion
(00:18:47) Cultural and Market Differences in Digitalization
(00:20:30) E-commerce Penetration and Future Trends
(00:22:18) Competitive Advantages in Japan's Market
(00:25:27) Rakuten's Mobile Network Ambitions
(00:30:36) Financials and Market Position
(00:37:24) Future Prospects and Risks
(00:39:10) Rakuten's E-commerce and Finance Growth
(00:40:07) Mobile Network Expansion and Challenges
(00:41:05) Customer Acquisition Strategies
(00:43:26) Comparing Rakuten to Competitors
(00:48:15) Financial Performance and Margins
(00:50:39) Capital Allocation and Long-term Strategy
(00:53:13) Risks and Future Potential
(00:56:17) Lessons from Rakuten
Duolingo: Free Speech - [Business Breakdowns, EP.157]
This is Matt Reustle. Today we are breaking down Duolingo, the learning app built on language learning that is increasingly expanding into other territories like math and music. Founder Luis von Ahn is constantly looking for ways to make this accessible and free to use for people all around the world while simultaneously finding reasonable ways to monetize and create a profitable, longer-term business. Duolingo has adjusted its business model over time to ensure that this can happen.
My guest is Thaiha Nguyen from Baillie Gifford. You should assume that most of our guests own the businesses that they are covering on business breakdowns, but it's important to mention here that Thaiha works for Baillie Gifford's Positive Change Strategy. They invest not only for returns but also for the impact on society.
Thaiha and I cover the fascinating founder story behind Duolingo, how Duolingo has succeeded in a largely offline market, how they've approached monetization, and how they plan to expand from here. Please enjoy this breakdown of Duolingo.
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For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is brought to you by Public. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
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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
(00:05:09) The Fascinating Founder Story of Duolingo
(00:11:42) Exploring the Language Learning Market and Duolingo's Impact
(00:25:26) The Evolution From Translation Service to EdTech Leader
(00:28:04) How Duolingo Became a Freemium Giant
(00:32:17) Understanding Duolingo's Diverse User Base
(00:34:03) Why People Choose Paid Subscriptions Over Free Options
(00:36:54) Duolingo's Certification and Assessment Business
(00:39:57) Leveraging AI for Personalized Learning Experiences
(00:43:06) Exploring Duolingo's Financial Health and Growth Strategy
(00:46:37) The Future of Educational Offerings Beyond Language Learning
(00:48:20) Duolingo in the Classroom
(00:54:50) Navigating the Risks and Opportunities in EdTech
(00:57:58) Key Lessons from Duolingo
Ferrari: Magic from Maranello - [Business Breakdowns, EP.140]
This is Dom Cooke. Today we are breaking down Ferrari. Ferrari was founded in 1929 as a race team by Italian driver, Enzo Ferrari, but it wasn’t until 1947 when Enzo was 50 that Ferrari sold its first car. Today, the car company is one of the most recognizable brands in the world, in large part because of its history in Formula 1, where it is both the oldest and most successful team ever.
To break down Ferrari, I’m joined by Brian Lum, an Investment Manager at Baillie Gifford. We discuss how Ferrari went from racing team to a $70 billion business, the various ways it looks more like a luxury goods company than a car maker, and how its business model both nurtures and monetizes its famous red brand. There aren’t many things money can’t buy, but in many instances, a Ferrari is one of them. The ways in which the company manufactures scarcity are fascinating, and this conversation dives into all the aspects that make Ferrari so successful and unique. Please enjoy this Business Breakdown of Ferrari.
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For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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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.
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Show Notes
(00:02:31) - (First question) - An introduction to the numbers behind the Ferrari brand
(00:04:26) - Exploring Ferrari's roots to understand the impact on the brand's present-day business landscape
(00:07:06) - Enzo Ferrari’s dedication to the company extended to the location of his house
(00:07:50) - A look at the brand’s racing heritage over the last 75 years
(00:13:04) - A unique way of structuring a marketing budget, wholly focused on F1
(00:17:51) - Ferrari's restraint in capitalizing on the SUV market to uphold their brand identity
(00:21:40) - A look at the product portfolio and how they cultivate exclusivity for their “collectors”
(00:23:51) - A unique buying experience, how existing Ferrari owners become frequent buyers
(00:26:50) - How Ferrari sets itself apart from its competitors
(00:29:20) - An overview of Ferrari’s financials
(00:35:21) - Alternative strategies beyond volume growth to uphold scarcity without compromising the brand's prestige
(00:36:40) - A look at other segments of the business like fashion
(00:38:44) - The business’ cost profile and its significant investment in R&D
(00:41:27) - Ferrari’s approach to electrification and hybrid cars
(00:48:31) - Comparing electrification and luxury watchmakers during the quartz crisis
(00:52:39) - Looking at Ferrari’s future and incremental evolution
(00:54:47) - Lessons learned from studying Ferrari
Argenx: Changing Lives with Llamas - [Business Breakdowns, EP.122]
This is Zack Fuss, an investor at Irenic Capital. Today, we're breaking down Argenx, an immunology company founded in 2008 by its three founding partners. Today, it's a $30 billion company set to produce over a billion dollars in sales. They're known for their skill in developing antibodies for complex disease targets and owe a large part of their medical breakthroughs to llamas, which have similar antibodies in their immune system to those found in humans.
To break down Argenx, I'm joined by Julia Angeles, an investment manager at Baillie Gifford. Throughout this conversation, we'll discuss how Argenx navigates the complex world of drug development, clinical trials, regulatory approvals, and the ultimate commercialization of autoimmune therapies. We'll also learn more about their transition from a venture capital backed business to its 2017 IPO, and today, a meaningful revenue generating business. We hope you enjoy this business breakdown.
Note: This conversation was recorded on 19 July 2023.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
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Shownotes
(00:03:49) - (First question) - Ways the immune system protects us and fails us
(00:06:00) - Current patient treatments and evolving solutions to existing problems
(00:07:52) - The key difference between how the biotech community is addressing big diseases versus autoimmune disorders
(00:09:55) - What sparked Julia’s interest in Argenx
(00:14:01) - Explanation how we use animal antibodies to help research progression
(00:15:25) - The foundations of the business
(00:17:57) - The evolution of the business and its commercial success thus far
(00:20:22) - Transitioning from lab antibodies to a commercial product ready for consumers
(00:23:42) - The infrastructure needed to maintain and grow Argenx
(00:26:43) - Indicators of commercial success
(00:29:27) - The basic revenue model for this business type
(00:30:49) - Go to market strategies for developed drugs
(00:34:39) - Pricing and patient protection of these newly developed drugs
(00:37:46) - Cures versus creating treatments with recurring revenue streams
(00:39:38) - The importance of the current team composition
(00:41:44) - Julia’s perspective on what they are willing to invest to grow the company
(00:43:49) - Normalized profitability for biotech companies such as this
(00:45:59) - Potential risks to the current business model
(00:49:22) - Lessons learned from studying Argenx
ASML: Competing with Moore’s Law - [Business Breakdowns, EP.117]
This is Matt Reustle and today we are back covering the semiconductor value chain. ASML was once a forgotten subsidiary of Philips. Today, it's one of the most important technology companies in the world. To break down ASML, I'm joined by Tom Walsh, a portfolio manager at Baillie Gifford. Tom helps explain what's happening inside an extreme ultraviolet lithography machine, and how ASML came to pioneer this technology from the Netherlands. It was a non-traditional path to say the least. This breakdown pairs very well with our breakdowns on AMD, Qualcomm and Cadence. And I'd also highlight the Founders Podcast episode #8 on the Intel Trinity. Please enjoy this breakdown of ASML.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is brought to you by Tegus. Tegus is the modern research platform for leading investors, and provider of Canalyst. Tired of calculating fully-diluted shares outstanding? Access every publicly-reported datapoint and industry-specific KPI through their database of over 4,000 driveable global models handbuilt by a team of sector-focused analysts, 35+ industry comp sheets, and Excel add-ins that let you use their industry-leading data in your own spreadsheets. Tegus’ models automatically update each quarter, including hard to calculate KPIs like stock-based compensation and organic growth rates, empowering investors to bypass the friction of sourcing, building and updating models. Make efficiency your competitive advantage and take back your time today. As a listener, you can trial Canalyst by Tegus for free by visiting tegus.co/patrick.
-----
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 | @ReustleMatt | @domcooke
Show Notes
(00:02:44) - (First question) - The ASML back story
(00:06:14) - A deep dive into what semiconductors and Lithography are
(00:08:04) - Alternate business directions ASML could have pursued
(00:19:39) - How large ASML is in the industry today
(00:10:37) - A look into the management team over time
(00:14:03) - Moore’s Law and the key components of chip production
(00:15:09) - Overall size of the machines manufactured
(00:16:14) - The evolution of UV light and its important role in the advancement of Lithography
(00:20:29) - Other competing companies within the field
(00:23:10) - A detailed look into the cost of production industry wide
(00:24:04) - Unlocked innovations associated with the development technology
(00:25:32) - The life cycle of a lithography machine
(00:27:04) - Revenue gained from new versus refurbished machines
(00:27:27) - The cyclicality of the ASML machine revenue
(00:29:32) - Potential production limitations due to capacity
(00:31:00) - Margin profile and how ASML sets prices
(00:32:33) - What the concentration of customers looks like
(00:37:00) - Reasons why an acquisition has not taken place to date
(00:38:42) - He explains where investor cash flow is directed
(00:40:01) - An investors perspective on ASML opportunities
(00:42:24) - How milestones in new technology are regulated and measured
(00:45:40) - Potential business risks
(00:49:21) - Lessons he’s learned from studying ASML
Hermès: The Luxury Icon - [Business Breakdowns, EP. 92]
Today’s breakdown has been at the top of our to-do list since the show started. There are few brands as strong as this one and the way the Dumas family has nurtured it over six generations is remarkable. We are, of course, talking about one of the ultimate status symbols, Hermès.
What began as a specialty saddles business in the mid 1850s has become famous for iconic handbags and other luxury items. Last year, the business earned $9 billion at 70% gross margins. It does things differently and to explore the details behind its difference, I’m joined by long-time shareholder, Mark Urquhart. Mark is a partner at Baillie Gifford and head of their Long Term Global Growth team, which he co-founded in 2003. Hermès was in the original portfolio when it launched in 2004 and has been held since then. Please enjoy this breakdown of Hermès.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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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 | @ReustleMatt
Show Notes
[00:02:29] - [First question] - The iconic Birkin and Kelly bags explained
[00:04:41] - New price and resale price for a Hermès bag
[00:06:13] - Production and distribution dynamics of Hermès bags
[00:08:11] - Overview of the company’s scale and structure
[00:09:52] - The basic margin structure and history of Hermès
[00:12:10] - Defensibility of investing in a luxury brand like Hermès
[00:15:48] - Market size and potential for future growth
[00:21:20] - The power of Hermès’ long heritage history
[00:26:37] - His definition of luxury and the role of luxury products in culture
[00:30:49] - The Hermès manufacturing model and their focus on craftsmanship
[00:35:28] - Strategies that Hermès has chosen to avoid
[00:38:51] - The importance of their six-generation family stewardship
[00:42:42] - How the family has maintained the business for so long
[00:45:41] - Overview of retail sales and their distribution model
[00:48:28] - Learnings from Hermès’ marketing strategy
[00:52:08] - How he would set up a brand if he needed it to compete with Hermès
[00:54:28] - Companies that come close to Hermès from an investment perspective
[00:56:20] - The complexity of Hermès’ valuation and growth potential
[01:00:59] - Why Hermès maintains a conservative capital allocation model
[01:03:07] - The importance of their consistently simple products and business model
Atlas Copco: Sweden’s Best Kept Secret - [Business Breakdowns, EP. 71]
This is Matt Reustle and today we are breaking down the Swedish industrial giant, Atlas Copco. With a market cap hovering around $50 billion US dollars, Atlas Copco is a dominant player in the air compressor and vacuum pump markets. It has returned 40x over the past 20 years for its shareholders and to break down the business I’m joined by Stephen Paice, Head of European equities at Baillie Gifford. Baillie Gifford has owned this business for 4 decades and Stephen still has the handwritten research notes from the mid-80s so we thought it was a proper fit.
We cover the rich corporate history, including how one family - the Wallenbergs (also referred to as the Swedish Rockefellers) - have played such a major role in the history, we get an overview of pneumatic energy and the importance of the air compressor market, and we explore what makes this corporate culture so noteworthy to both insiders and outsiders. Please enjoy this breakdown of Atlas Copco.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Show Notes
[00:02:12] - [First question] - What makes Atlas Copco such an interesting business
[00:03:52] - What they’re selling and who they’re typically selling to
[00:06:02] - Whether or not there are alternatives to air compressors
[00:07:03] - What a vacuum pump is and how their industrial vacuum business works
[00:08:55] - Metrics used to measure how Atlas Copco is a market leader
[00:10:25] - Some of the key milestones of their corporate history leading up to today
[00:17:51] - How much the Wallenberg family owns of Atlas Copco today
[00:18:48] - Walking through the income statement
[00:21:47] - Service regularity and overview of revenue generated through service
[00:25:35] - Cost profile of the business and how their supply chain works
[00:30:19] - Anything unique that contributes to their 6-7% revenue growth
[00:31:55] - What the consolidated business margin works out to
[00:33:23] - TransDigm; Being able to allocate 30-40% of free cash flow towards acquisitions in a fragmented market
[00:35:16] - What the bull case for Atlas Copco is
[00:39:46] - A metric he typically uses when thinking about these types of businesses
[00:40:47] - The most interesting and surprising takeaways from Atlas Copco
20VC: The Most Powerful Investor You Might Not Know | Why The Distinction Between Public vs Private is BS | The Misalignments Between GPs and their LPs | Portfolio Construction 101: Diversification, Capital Concentration, Loss Rates with Peter Singlehurst
Peter Singlehurst is the Head of Private Companies at Baillie Gifford. As of 31st March 2022, funds under Baillie Gifford's management and advice totaled £277bn. The firm is owned and run by 51 of its senior executives who operate as a partnership, a structure that has endured for over a century. As for Peter, he has been with Baillie Gifford since graduating from Durham University 12 years ago and has backed some astonishing breakouts such as Wise, Grammarly and Zymergen to name a few.
In Today's Episode with Peter Singlehurst We Discuss:
1.) Entry into Venture:
How Peter landed his role with Baillie Gifford straight out of university?
Why does Peter and Baillie Gifford prefer to hire young people without backgrounds or studies in finance? Why do they tend to be better investors?
What does Peter believe are the basic building blocks that can be taught in investing? What cannot be taught and needs to be learned with experience and time?
2.) The Biggest Misnomers and Misalignments in Venture:
Why does Peter believe the distinction between public vs private markets is BS?
Why does Peter believe it is an advantage to invest at the same time in both public and private markets?
Why does Peter think there is an inherent misalignment in venture between GPs and their LPs?
3.) Baillie Gifford: Constructing a Portfolio with £277BN:
How does Baillie Gifford approach portfolio construction today?
How many lines do they want to have in their portfolio? What is the right level of diversification?
How does Peter think about sizing each position? How does Peter think about capital concentration across rounds vs first check being the largest?
How does Peter approach outcome scenario planning? How does Peter think about downside protection and loss rates?
4.) Peter Singlehurst: The Investor:
How has Peter's investing style changed over the last 10 years? What has gotten easier? What has gotten harder?
What is Peter's biggest miss? How did it change his approach?
What is Peter's biggest hit? What did he learn and take from this?
How did the crossover funds change and impact the way that later stage venture was conducted?
Item's Mentioned In Today's Episode:
Peter's Fave Book: The Myth of Sisyphus
Peter's Most Recent Investment: Grammarly