This is Jesse Pujji and today we’re breaking down ChargePoint. ChargePoint is the clear market leader in the United States for electric vehicle chargers. Founded in 2007 by five technical founders, the business has ridden the wave of EV growth and has manufactured some 40% of charging points in the US.    To break down ChargePoint, I’m joined by Mark Tomasovic, a principal at Energize Ventures and a previous guest on our show. We discuss the challenges of a commoditized business, how ChargePoint is leading the EV land grab, and why the US is at a particularly interesting point for EV adoption. Please enjoy this business breakdown of ChargePoint.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   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 [00:02:16] - [First question] - What ChargePoint is [00:03:26] - Their size, scale and revenue today [00:04:21] - The history of ChargePoint and the EV charging sector  [00:06:25] - How the industry has evolved and important metrics to understand  [00:08:18] - Who the main players are in the EV charging infrastructure layer [00:10:46] - The role auto manufactures play and their relationship with this world [00:12:05] - Tesla’s closed wall network and ChargePoint’s open network [00:13:05] - Competitive advantages in the EV charging landscape [00:15:45] - Whether or not sales and marketing is unique to ChargePoint  [00:16:47] - Other unique arrangements that will unlock the pace of their land grab [00:18:37] - The various lines of P&L and how to think about them [00:19:34] - The three levels of chargers and costs associated with them  [00:21:52] - What goes into their gross profit margins and cost of revenue  [00:22:50] - How their gross margin compares to their competitors [00:23:41] - What they’re trying to accomplish with their high R&D spend [00:24:49] - What they’re investing in and betting on for the future by spending cash [00:25:38] - Expectations of future growth for the next couple of years [00:26:46] - Growth over the long-term trajectory and the car to charger ratio [00:29:14] - Their main flywheels that give them a competitive advantage  [00:30:53] - The big buckets of customer segments and end point leverage [00:32:09] - What the life expectancy of a charger is [00:33:13] - The regulatory environment writ large  [00:34:39] - Bull case for ChargePoint over the next five to ten years  [00:37:36] - Reasons why ChargePoint might not succeed over the next five to ten years  [00:38:58] - Lessons for builders and investors when studying ChargePoint  [00:39:51] - Learn more about ChargePoint; energize.vc

This is Zack Fuss, an investor at Irenic Capital Management. Today we’re breaking down the world’s largest luxury business, LVMH. The LVMH story is deeply reflective of the vision of its 73 year-old founder and architect, Bernard Arnault. Today, the business generates €75 billion in sales across its 75 brands and 3 sector focuses. With a market cap of €350 billion, LVMH is not only the largest luxury business in the world but one of the largest businesses in the entire world.    To break down LVMH, I’m joined by Christian Billinger, the chairman of Billinger Förvaltnings. We discuss the paradox between scarcity and scale in the luxury industry, analyze some of the company’s high profile acquisitions, and delve into the history of this conglomerate’s famous founder. Please enjoy this breakdown of LVMH.     For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   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 [00:03:30] - [First question] - How LVMH came to be and Bernard Arnault’s history [00:08:56] - Spread of revenue and margins across their various brands [00:13:38] - What it is about their business that has allowed them to achieve such tremendous scale given the scarcity of luxury goods [00:16:06] - Examples of Arnault reinvesting in the business for the long-term [00:17:04] - Ways all of their brands and different verticals work together to create value [00:18:56] - What the general view on success is after Arnault steps down  [00:21:19] - Key factors that allow luxury houses to enjoy handsome returns on capital historically [00:23:17] - What he’s noticed about luxury brands and their ability to redeploy capital  [00:26:25] - How their capital allocation strategy manifests in their financial profile [00:28:24] - The Arnault family’s control over LVMH [00:31:48] - The evolution of the industry in Europe and the strong getting stronger  [00:33:58] - Cultural differences internationally that allow some countries to thrive in luxury brands compared to others like the US [00:36:17] - Thoughts on the influence of the Chinese consumer on European luxury houses [00:40:30] - What has characterized their M&A strategy historically [00:44:08] - Overview of their recent acquisitions and what it means for LVMH going forward [00:47:46] - Their go-to-market strategy to acquire customers and build the brand [00:48:11] - Some of LVMH’s vulnerabilities and risks  [00:50:44] - Key takeaways for investors and operators when studying LVMH’s story