This is Dom Cooke. Today we are breaking down Ferrari. Ferrari was founded in 1929 as a race team by Italian driver, Enzo Ferrari, but it wasn’t until 1947 when Enzo was 50 that Ferrari sold its first car. Today, the car company is one of the most recognizable brands in the world, in large part because of its history in Formula 1, where it is both the oldest and most successful team ever. To break down Ferrari, I’m joined by Brian Lum, an Investment Manager at Baillie Gifford. We discuss how Ferrari went from racing team to a $70 billion business, the various ways it looks more like a luxury goods company than a car maker, and how its business model both nurtures and monetizes its famous red brand. There aren’t many things money can’t buy, but in many instances, a Ferrari is one of them. The ways in which the company manufactures scarcity are fascinating, and this conversation dives into all the aspects that make Ferrari so successful and unique. Please enjoy this Business Breakdown of Ferrari. Interested in hiring from the Colossus Community? Click here. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus. Tegus is the modern research platform for leading investors, and provider of Canalyst. Tired of calculating fully-diluted shares outstanding? Access every publicly-reported datapoint and industry-specific KPI through their database of over 4,000 driveable global models handbuilt by a team of sector-focused analysts, 35+ industry comp sheets, and Excel add-ins that let you use their industry-leading data in your own spreadsheets. Tegus’ models automatically update each quarter, including hard to calculate KPIs like stock-based compensation and organic growth rates, empowering investors to bypass the friction of sourcing, building and updating models. Make efficiency your competitive advantage and take back your time today. As a listener, you can trial Canalyst by Tegus for free by visiting tegus.co/patrick. ----- 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 (00:02:31) - (First question) - An introduction to the numbers behind the Ferrari brand (00:04:26) - Exploring Ferrari's roots to understand the impact on the brand's present-day business landscape (00:07:06) - Enzo Ferrari’s dedication to the company extended to the location of his house (00:07:50) - A look at the brand’s racing heritage over the last 75 years (00:13:04) - A unique way of structuring a marketing budget, wholly focused on F1 (00:17:51) - Ferrari's restraint in capitalizing on the SUV market to uphold their brand identity (00:21:40) - A look at the product portfolio and how they cultivate exclusivity for their “collectors” (00:23:51) - A unique buying experience, how existing Ferrari owners become frequent buyers (00:26:50) - How Ferrari sets itself apart from its competitors (00:29:20) - An overview of Ferrari’s financials (00:35:21) - Alternative strategies beyond volume growth to uphold scarcity without compromising the brand's prestige (00:36:40) - A look at other segments of the business like fashion (00:38:44) - The business’ cost profile and its significant investment in R&D (00:41:27) - Ferrari’s approach to electrification and hybrid cars (00:48:31) - Comparing electrification and luxury watchmakers during the quartz crisis (00:52:39) - Looking at Ferrari’s future and incremental evolution (00:54:47) - Lessons learned from studying Ferrari

This is Zack Fuss. Today we are breaking down Vistra Corp. Vistra is an integrated retail electricity and power generation company. The company, through its subsidiaries, is involved in electricity generation and wholesale and retail energy sales to commercial, municipal and residential customers across the U.S. The company serves 4 million Americans across 20 states producing 37,000 megawatts of capacity, enough to power 20 million homes. To break down Vistra, I'm joined by John DeGulis, Partner and Portfolio Manager at Sound Shore Management. We go through the dramatic evolution of the industry, the acquisition track record of Vistra, and zoom out on the broader electricity production & distribution business and history in the United States. Please enjoy this conversation on Vistra Corp. Interested in hiring from the Colossus Community? Click here. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.  ----- This episode is brought to you by Tegus, the modern research platform for leading investors. Stretch your research budget with flexible expert calls you can trust. At a fraction of the cost of traditional expert networks, Tegus customers pay only what an expert charges – with zero markups and no confusing call credits – netting an average 70% savings. Don’t want to conduct a full hour call? Tegus offers the ability to schedule 30-minutes, an offer you won’t find anywhere else. And they don’t stop there. With white-glove custom sourcing for every project and robust compliance measures, including a dedicated 50+ analyst team that vets every call transcript, Tegus ensures your privacy and protection. As the industry innovator for qualitative insights, Tegus helps you find the right experts you need at a quality and speed that can’t be matched. For a limited time, as a listener, you can trial Tegus for free by visiting tegus.co/patrick. ----- 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 (00:02:52) - (First question) - A brief history of Vistra (00:10:57) - An overview of Vistra’s business model  (00:14:11) - Navigating the value chain of merchant power from generation to retail and how Vistra positions itself within the industry (00:27:28) - The contrast between financial analysis and consumer perspectives and Vistra’s strategic cash flow allocation toward renewables and shareholder returns (00:32:49) - The limitations when charging for electricity utilities  (00:35:23) - A breakdown of Vistra Vision, the allocation of profits from traditional energy generation for growth in renewable energy (00:39:29) - Vistra’s management team and the key players  (00:42:58) - Vistra’s potential expansion plans into solar, wind and nuclear  (00:46:30) - How Vistra could be an integral part of the nation's energy transition to low or no-carbon electricity (00:49:28) - The lessons learned from studying Vistra