Business Breakdowns
· Matt Reustle, Jeremie Fastnacht
[00:00:00] S0: I think you shared a good lesson in that last answer, but we always close out these conversations with the lessons you can take away. This is a unique business, but what would you say at a high level is a broad takeaway that you might be able to take from whatever classification or framework you would put around this business and potentially apply elsewhere? [00:00:00] S1: If you look at why this business is very attractive, the reason is the business model of selling something very critical to the clients which represent a tiny portion of their clients' cost. So you have nice margin, recurring business, they don't want to change. You have visibility. And I think if you look this way, it helps you find a lot of good companies in other industries. If you look at this industry, you realize that there are lots of companies that have been growing and thriving for decades – sometimes over a century. If you look at an industry where you see that kind of business, profitable, stable, very lasting. They have gone through many wars, through many crises, and they are still there. You can find other companies in other industry. For example, if you look at, for example, food, you have Mars and Ferrero that are very big companies, and they are able to stay private and, and still be very important. You have Chanel or Rolex in luxuries. It helps you find other maybe attractive listed opportunities.
· Jeremie Fastnacht, Matt Reustle
[00:00:00] S1: If you look at why this business is very attractive, the reason is the business model of selling something very critical to the clients which represent a tiny portion of their clients' cost. So you have nice margin, recurring business, they don't want to change. You have visibility. And I think if you look this way, it helps you find a lot of good companies in other industries. If you look at this industry, you realize that there are lots of companies that have been growing and thriving for decades – sometimes over a century. If you look at an industry where you see that kind of business, profitable, stable, very lasting. They have gone through many wars, through many crises, and they are still there. You can find other companies in other industry. For example, if you look at, for example, food, you have Mars and Ferrero that are very big companies, and they are able to stay private and, and still be very important. You have Chanel or Rolex in luxuries. It helps you find other maybe attractive listed opportunities. [00:00:00] S0: I love that. It's a lesson we love and we've seen in a few different industries that look very different than this, but with the same general concept. Jeremie, this has been a pleasure. You taught me a lot about a market I knew very little about, so thank you for sharing the knowledge with us. [00:00:00] S1: Thank you very much.