Exor: Fiat Crisis to Ferrari Glory - [Business Breakdowns, EP.229]
This is Zack Fuss. Today, we are breaking down Exor. The origins of Exor date back to the end of the 19th century when Giovanni Agnelli founded the Auto Company Fiat. Over the company's 100-year-old history, a lot has changed. While some of the core assets remain the same today, Exor serves as an investment holding company. Its largest and most notable assets include Ferrari, CNH, Stellantis, Philips, and a number of other notable household-name companies.
I am joined by Krishna Mohanraj, a portfolio manager of the International Strategy at Diamond Hill. Today, Exor is led by John Elkann, the grandson of the late Giovanni Agnelli. Elkan was named heir of his grandfather at the age of 21, and has fostered and reshaped the business to what it is today. Please enjoy this Breakdown of Exor.
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
(00:03:29) The Fascinating History of Fiat
(00:05:16) Leadership Through the Ages
(00:07:29) Simplifying the Family's Assets
(00:09:31) Current Holdings and Investments
(00:11:13) John Elkan's Influence and Strategy
(00:12:39) The Role of Sergio Marchionne
(00:14:09) The Evolution of Exor's Portfolio
(00:17:08) Key Listed Investments
(00:23:29) Valuation and NAV Discount
(00:27:44) Capital Allocation and Governance
(00:28:48) Investment Approach and Financial Discipline
(00:32:37) Exploring the Private Portfolio
(00:36:25) The Partnery Transaction Case Study
(00:39:03) Future Prospects and Strategic Sectors
(00:46:21) Lessons from Following Exor
Mitsubishi Corporation: A Japanese Trading Company - [Business Breakdowns, EP.156]
This is Zack Fuss. Today we are breaking down the Mitsubishi Corporation. In Japan, the business model of a trading company is prominent. The big five trading companies caught the attention of global investors in 2020, when Berkshire Hathaway disclosed a major stake in all of them: Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo. Today's Berkshire stake is nearly 10%.
I'm joined by Krishna Mohanraj, a Portfolio Manager at Diamond Hill Capital Management. In this episode, we discuss how the rich history of trading houses is steeped in Japanese culture and how each differs from one another. Krishna helps unravel the evolution of stakeholder priorities and how capital allocation policies have changed in the Japanese capital markets. Please enjoy this Breakdown of Mitsubishi Corporation.
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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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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
(00:03:12) First Question - Understanding Mitsubishi's Global Impact and Business Model
(00:07:12) The Evolution of Mitsubishi and Japanese Trading Houses
(00:12:12) Mitsubishi's Investment Case and Market Position
(00:15:02) Comparing Mitsubishi with Other Japanese Trading Houses
(00:18:22) The Secret to Mitsubishi's Success and Global Network
(00:21:16) The Relevance of Berkshire’s Investment in the Japanese Trading Houses
(00:26:45) A Cultural Shift in the Orientation of Japanese Businesses Towards Their Shareholders
(00:28:35) Valuing Mitsubishi
(00:31:05) Reinvesting in The Business And Reallocating Capital
(00:33:02) Mitsubishi’s Unique Management Dynamic
(00:38:54) Advantages of the Mitsubishi Group
(00:42:44) Lessons Learned from Mitsubishi