Andrew has written extensively on Schwab, which we link to in our show notes. I am @Compound248 and this is the next installment in our Business Breakdowns mini-series focused on Digital Infrastructure, where we are breaking down a handful of companies that are key players in the digital infrastructure asset class. I am Compound248 and today we are pleased to announce and kick-off a Business Breakdowns mini-series focused on Digital Infrastructure. Get started with Coinbase Prime today at coinbase.com/prime. Today, they operate over a 1000 clubs across 5 countries, and have 2 million combined members in their system.

[00:31:10] - Are we heading to a future where warfare is mostly machine against machine? This episode is brought to you by Tegus. This is Jesse Pujji and today were breaking down McKinsey & Company, the worlds pre-eminent management consulting firm. Daloopa uses AI to find every KPI disclosed - from charts, to text, and even from footnotes of investor presentations. [00:04:02] - [First question] - Gogos 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, [00:11:37] - 30% market penetration of potential WiFi signal outfitted aircraft, [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, [00:23:44] - How much more traffic their existing network could handle, [00:24:17] - CapEx, service revenue, and a projected 20% system growth, [00:25:55] - Cost structure margin on their recurring service revenue, [00:26:36] - Where they are in building out their 5G network, [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, [00:35:23] - Speed differentials between their varying network offerings, [00:36:48] - Price differences with competitors and the strength of their dealer network, [00:38:19] - Expensive alternatives and the customer experience of GeoSatellite services, [00:40:42] - Describing the differences between GeoSatellite and Elons Starlink, [00:46:19] - Reasons why Starlink might become a competitor, [00:48:56] - How Gogos 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, [00:53:39] - Plans to become a free cash flow generating machine, [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, [00:57:33] - Legal allegations from SmartSky and using the unlicensed spectrum, [00:59:50] - Cyclicality of their clients and suspended business periods, [01:02:18] - Their channels and customer concentration, [01:03:17] - Minority shareholders and their long term vision, [01:04:57] - Two key lessons for others attempting to build and lead a company. Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. This is Matt Reustle, and today were breaking down Europes leading low-cost gym operator, Basic-Fit. We cover Fanatics' unique vertically integrated commerce model, how they redefined their TAM, and how the company is aggressively entering NFTs, real money betting, and other expansion areas. This is Matt Reustle and today we are breaking down the financial institution known as Charles Schwab. While the online brokerage market has been decimated in recent years from fee compression, Schwab has been pivoting their business model to that of a traditional bank. Everything from streaming video to business collaboration tools, to crypto mining, to your everyday internet experience. To break down Dino I am joined by Jon Cukierwar of Sohra Peak Capital Partners. Tegus is the new digital hub for market intelligence. This episode is brought to you in partnership with Roundhill Investments, the advisor to the Roundhill IO Digital Infrastructure ETF BYTE - which trades on the New York Stock Exchange under the ticker symbol BYTE. [00:02:55] - [First question] What Adyen is and what they do, [00:05:54] - General overview of how payment processing works, [00:07:29] - Flow of a transaction and how they manifest, [00:09:52] - How the business generates revenue and their revenue model, [00:11:25] - Where Adyen sits in the industry and the size of it today, [00:13:37] - The reality of processing 50-60% of their addressable market, [00:16:19] - What about their culture and founding story makes them so nimble, [00:21:18] - The competitive strengths of the business and their innovative solutions, [00:24:07] - Key revenue drivers for Adyen, [00:26:01] - What is it about Adyens business structure that enables them to grow so rapidly while still being profitable, [00:32:44] - What gives Adyen its competitive advantage over other payment providers. The company has been allocating cash flow between unconventional wells, conventional wells, and debt reduction in recent years. This episode is brought to you by Visible Alpha. Daloopa streamlines a major pain point for investors.

In this episode, we will talk about a company that delivers that airbourne experience, Gogo. Today's episode was originally featured in our, feed. They report over $8 trillion in assets under custody and a market cap scratching $120 billion but I think the most fascinating part about this breakdown is the strategic pivot taken by Schwab. , co-founder and President of Anchorage Digital. Quartr is 100% free and includes companies from 12 markets including the US, the UK, Canada, India, and all the Scandanavian countries. For loyal listeners, you will remember Marc from our popular episode on. Web3 Breakdowns is a property of Colossus, LLC. Please enjoy this breakdown of Berkshire Hathaway. The 80,000 barrel a day producer certainly isnt a household name. This is Dom Cooke and today we are breaking down the PGA Tour. [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] - Dinos 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 Dinos history, [00:20:03] - Where Dinos 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 hes learned from studying Dino Polska. This software and financial services business was founded by Jack Dorsey and Jim McKelvey in 2009. Brett is a founder of Ladder, a fitness market platform. , a McKinsey alum and the current President of Metasys Technologies. How is it, for example, that Netflix, based in Seattle, is able to deliver a perfect streaming experience to your phone in the back seat of a New York City taxi cab? Please enjoy this business breakdown of Fanatics. We hope you enjoy this breakdown of Charles Schwab. For listeners unfamiliar with Web3 Breakdowns, the concept was inspired by Business Breakdowns but intended to be a place fully dedicated to the emerging ecosystem around blockchains, crypto assets, and everything that makes up Web3. To breakdown Afterpay, I am joined by investor Joe Magyer. Business Breakdowns is a property of Colossus, LLC. , from Insight Partners. [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 Berkshires capital source has been more important than stock selection, [00:30:04] - Why theres 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 Berkshires 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 Berkshires story. We cover what it means to operate as a bank vs online broker, how Charles Schwab himself grew this business out of a newsletter, and whats on the horizon for Schwab in the future. from Arlen House Capital, who is an investor in Basic-Fit. Schwab is a financial behemoth. This episode is brought to you by Coinbase Prime. I am Compound248 and today we are pleased to announce and kick-off a Business Breakdowns mini-series focused on Digital Infrastructure. Please enjoy this conversation on Baytex Energy. Our discussion breaks down Anchorages business, explores what great digital security looks like, and reveals what new behaviors web3 is unlocking for traditional institutions. Daloopa streamlines a major pain point for investors. [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 hed give as advice to someone looking to build and lead a company. To break down DuPont, we are joined by. Founded in 2012, AppLovin provides a platform for developers to market and monetize their mobile apps. [00:37:42] - The secret sauce behind their successful growth trajectory, [00:39:25] - The essence of Adyens culture and how it manifests in their day-to-day work, [00:42:04] - What Adyen plans to do with all of the cash they produce, [00:43:35] - What keeps him up at night and potential threats to the business. Owned by a Foundation and run as a non-profit entity, little is known about Rolex. If you enjoy this episode, be sure to subscribe to Web3 Breakdowns and enjoy our growing catalog of episodes. Its a business you may not recognize but have likely interacted with. An accountant by trade, James McKinsey, took inspiration from a range of well-established professions like engineers, doctors, and lawyers to create a new category.

This episode is brought to you by Daloopa. Please enjoy this excellent Breakdown of Rolex. This is Zack Fuss and today were breaking down European-based payment business, Adyen. Today, we are breaking down Anduril. A brief introduction to the economics of the fitness industry, covering why the ideal gym customer is one that rarely uses the service. How is it, for example, that Netflix, based in Seattle, is able to deliver a perfect streaming experience to your phone in the back seat of a New York City taxi cab? Please enjoy this business breakdown of Block. To break down Schwab, I am joined by Holland Advisors Founder and Portfolio Manager, Andrew Hollingworth. The Du Pont family pushed the limits. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns, [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 theyve 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 thats seemingly everywhere in financial service businesses, [00:42:01] - His thoughts on the competitive environment and how theyre 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 Blocks 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 environments impact, [01:03:49] - Lessons for builders and investors when studying Blocks story, [01:06:20] - Places to go to learn more about Block. Editors note: this conversation was recorded before the field for this weeks inaugural LIV golf invitational event was announced. This episode is brought to you by Visible Alpha. This episode is brought to you by Scribe. [01:05:38] - Where Romeen would direct people to go for further study; To break down Fanatics, I am joined by an early investor. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns. We discuss the history of the defense industry, how Andurils business is counter positioned against the legacy cost-plus model, and what Brian has learned about selling to the DoD. Visit kensho.com/breakdowns to learn more and unlock your free trial. Digital Infrastructure powers that experience. Examines the philosophy successfully used by Nomad Investment Partnership to identify compounding machines and deliver outsized returns. [00:50:06] - Key differences between Stripe and Adyen, [00:56:23] - Lessons learned from studying Adyen and what payment service builders can learn from them, To break down the business, Im joined by. 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. We break down the unique dynamics of the Polish consumer, how Dino differentiates from its competitors, and Dino's founder of mystery Tomasz Biernacki. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes [00:02:47] - [First question] - What its like to walk into a Basic-Fit gym [00:03:50] - Their footprint today in terms of geography, members and locations [00:04:41] - The history of gyms in the US and differences between them and European ones [00:08:33] - Why US gym models lack influence and penetration in Europe [00:10:58] - The key insight that led to founding Basic-Fit [00:13:40] - Economics of building and operating a gym in general and for Basic-Fit [00:16:47] - Typical churn for more established locations and their member demographic [00:20:33] - When Basic-Fit breaks even on a membership and how they battle churn [00:23:28] - Their cancellation policy and why they dont leave for typical reasons [00:25:10] - Basic-Fits fortressing strategy and clustering philosophy [00:28:51] - Whether or not theres data to support members using multiple gyms [00:33:11] - The competitive landscape and whether other gyms adopt Basic-Fits strategy [00:35:21] - What drives country localizations for a particular gym chain [00:38:22] - Basic-Fits digital offering and at-home disruption from US brands [00:42:31] - How they navigated the pandemic and if theres any lasting changes [00:44:31] - The biggest threats to Basic-Fit over the next five years [00:46:23] - Major takeaways from studying Basic-Fits story, Invest Like the Best with Patrick O'Shaughnessy. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial. Please enjoy this breakdown of Adyen. Today, were breaking down one of the strongest brands in the world - Rolex. Over the coming months, we will breakdown a handful of companies that are key players in the digital infrastructure asset class. 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. Released Please enjoy this breakdown of Goldman Sachs. 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. We cover the DNA of bank profitability as we go through the core segments of a bank: asset management, sales & trading, and investment banking. Sign up here. . [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 theyve 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 hes had to make through Andurils history, [00:53:51] - How he overcame Andurils lowest points and biggest challenges, [00:58:38] - Thoughts on effectively compounding hardware innovation, [01:02:23] - A moment hes most proud of and regrets most in Andurils history, [01:04:20] - Lessons learned from observing Palantir and SpaceX, [01:08:37] - The kindest thing anyone has ever done for him. Alongside the four standalone majors, the PGA Tour is the pinnacle of professional golf. We cover how producers fit into the broader energy ecosystem, the differences between unconventional shale wells versus conventional wells, and how management teams think about capital allocation. Our conversation focuses on a new concept, tokengated commerce, and how Shopify is building around this theme. This is Matt Reustle and today were breaking down Diploma. For loyal listeners, you will remember Marc from our popular episode on Blackstone. Todays business needs little introduction. Daloopa streamlines a major pain point for investors. To break down the business behind the stars and action you see on the PGA Tour, Im joined by Neil Schuster, co-founder of golf media business No Laying Up. To help break down Baytex, Im joined by oil and gas investor, Josh Young, of Bison Interests. This episode originally ran in our. But, wow, did the Dupont family set a standard in that category.