Mineral Resources: Unearthing Value - [Business Breakdowns, EP.172]
This is Matt Reustle. Today, we are breaking down Mineral Resources. Even if you've had some bad experiences investing in commodities, I would not skip over this one so quickly.
Fraser Christie, investor at TDM Growth Partners, joined me to talk about how MinRes has taken a different approach to the historically cyclical boom-bust industry. We walk through the increasingly vertical integration of Mineral Resources' business and we get into some of the thoughtful capital allocation that has taken place through this history. It's a very fun business with a very fun founder who still remains a key player. Please enjoy this breakdown of Mineral Resources.
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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.
Follow us on Twitter: @JoinColossus | @ReustleMatt | @domcooke | @zbfuss
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
(00:05:58) Deep Dive into Mineral Resources' Business Segments
(00:07:26) Founder Chris Ellison's Entrepreneurial Journey
(00:10:22) Overview of the Mining Market and Its Competitive Landscape
(00:16:43) Mineral Resources' Financial Model and Capital Allocation Strategy
(00:27:59) Intercompany Innovations and Employee Welfare
(00:36:03) The Time Line for Recouping An Investment in Mining
(00:40:11) Mineral Resources as a M&A Target
(00:43:56) Main Risks and Challenges
(00:49:38) Lessons From Breaking Down Mineral Resources
Comparing the Dotcom Crash to Today (with Tom Cowan from TDM)
Every now and then, we come across super interesting and under-the-radar (at least to us!) public markets folks like NZS Capital who make us think differently about the art of investing. TDM is another one of those groups — founded 18 years ago in Australia, they’ve compounded a single, private pool of capital at 26% per annum over nearly two decades. That’s Warren & Charlie territory!
TDM recently published a memo comparing the current “post ZIRP bubble” market with what happened in the years following both the dot-com crash and the GFC in 2008. As always, past performance isn’t necessarily predictive of the future, but what happened back then surprised us and might surprise you too. More importantly, it gave us the perfect excuse to sit down with TDM cofounder Tom Cowan and share the conversation with you all. Tune in and learn alongside us!
Links:
TDM’s 2023 Market Memo
The current BVP Cloud Index
Follow TDM on Twitter or LinkedIn
Sponsors:
Sierra: https://bit.ly/acquiredsierra
Wise: Moving Money Around the World - [Business Breakdowns, EP. 99]
This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down Wise. Wise helps individuals and small businesses move money across borders. It offers significantly faster and cheaper international transfers than traditional banking routes because of its innovative closed-loop system. Twelve years after its founding, Wise serves six million customers and earned close to £1 billion in income last year. Investors currently value the business, which is listed in London, at £6 billion.
To break down Wise, I’m joined by former payments exec and now investor at Sydney-based TDM Growth Partners, James Revell. We cover the broken system of correspondent banking, which has led to slow, opaque, and expensive transfers and then explore how Wise has counter-positioned itself to take advantage of this large market. Please enjoy our breakdown of Wise.
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 | @domcooke
Show Notes
[00:02:27] - [First question] - Overview of Wise, their key product, and core competency
[00:04:17] - The founding story of Wise and the road leading to today
[00:09:18] - Wise’s size and scale today compared to 2011
[00:11:07] - Their competitive advantages and how it informs their goals
[00:19:24] - Exploring Wise’s closed loop system and why their model can’t be copied
[00:21:28] - Unique characteristics of their business model that allows them to capture such robust margins
[00:25:32] - Overview of Wise’s unit economics and their revenue model
[00:34:49] - Interchange fees and how Project Zero guides the business
[00:36:44] - Why their lower take rate doesn’t destroy the industry
[00:38:24] - Ways Wise’s business model can’t simply be copied and replicated
[00:44:35] - Thoughts on who their true competitors are
[00:48:10] - Their customer acquisition flywheel
[00:49:49] - Float, increasing net margin, and how they contribute to durability
[00:53:55] - Key risks associated with Wise when evaluating the business
[00:58:35] - Reasons behind the decision to raise money as a direct listing in the UK
[01:01:03] - How people looking at Wise should think about margins over time
[01:03:32] - Lessons for builders and investors when studying Wise’s story
Block: Square, Cash App, and Economic Access - [Business Breakdowns, EP. 53]
This is Jesse Pujji and today we’re breaking down Block – formerly known as Square. This software and financial services business was founded by Jack Dorsey and Jim McKelvey in 2009. It has since expanded from its first product – a payments card reader – into a $75 billion market cap with six businesses that build on the firm’s mission of economic access and empowerment. Those are: Square, Cash App, Afterpay, Tidal, Spiral, and TBD.
To break down Block, I’m joined by payments expert and investor at TDM Growth Partners, Hamish Corlett. We cover the common threads that have enabled Block to organically build two major ecosystems in Square and Cash App, how the recent Afterpay acquisition can strengthen the connective tissue between those businesses, and the competitive frontiers Block faces. Please enjoy this business breakdown of Block.
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
Show Notes
[00:02:52] - [First question] - What is Block and what it does as a business
[00:04:58] - How is Block organized, their scale, and how many merchants they serve
[00:08:03] - Their founding story and the insight that lead to creating Block
[00:10:49] - Major milestones in the last decade after releasing their card reader
[00:13:47] - The story behind their Cash App and what it is
[00:18:59] - What Afterpay is and how it creates connections for merchants
[00:21:23] - Overview of the payment ecosystem and where Block fits into it
[00:25:03] - The P&L of Square, its blended gross margin, and customer acquisition strategy
[00:30:42] - How Cash App makes money and its P&L
[00:35:54] - The balance sheet of Block and how they’ve stood out in a competitive space
[00:38:31] - The ways their product organization allows them to move at a rapid pace
[00:40:30] - How they avoid fraud that’s seemingly everywhere in financial service businesses
[00:42:01] - His thoughts on the competitive environment and how they’re succeeding
[00:47:56] - Highlights of M&A and how they reconcile them with their overall strategy
[00:54:44] - Their view on Bitcoin and crypto and how it plays into Block’s business
[00:59:09] - Things that could happen in a macro environment to aid their future growth
[01:01:30] - What could go wrong in the future and the macro environment’s impact
[01:03:49] - Lessons for builders and investors when studying Block’s story
[01:06:20] - Places to go to learn more about Block