This is Zack Fuss. Today we're breaking down Fastenal. Starting as a small fastener retailer in Minnesota, the company has evolved into a mission-critical supply chain partner for its industrial customers. Today, the business sports a nearly $50 billion market cap and produces nearly $8 billion in sales.  The impact of Fastenal's founder, Bob Kierlin, on Fastenal's commercial success can't be overstated. The industrial vending machine was his original idea, a vision he made a reality years later through its network of local branches, onsite locations, embedded with customers and innovative inventory management technologies. I'm joined by Delian Entchev, a portfolio manager at Aoris Investment Management. Today, we'll unpack the strategic choices, cultural DNA, and relentless customer focus that have fueled Fastenal's remarkable success. Please enjoy this Breakdown of Fastenal. Check out our new print publication Colossus Review. 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 EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. This holiday season, go to eightsleep.com/breakdowns and use code JOYS for up to $600 off the Pod 4 Ultra when bundled.  — This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform. ----- 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 (00:07:44) Understanding Fastenal's Business Model (00:08:24) The Amazon Connection (00:10:09) Fastenal's Founding Story (00:12:06) Pivot to Business Customers (00:13:18) Empowering Employees for Growth (00:14:44) Frugality and Culture at Fastenal (00:17:33) Expansion and Evolution (00:19:07) Onsite Services and Technological Innovations (00:22:17) International Growth and Future Opportunities (00:23:16) Financial Profile and Customer Relationships (00:28:36) Customer Integration: Fastenal's On-Site Business Model (00:29:21) Three Pillars of Fastenal's Service: Experts, Inventory, and Technology (00:30:39) Customization and Proximity: Tailoring On-Site Solutions (00:31:56) Economic Relationships and Customer Spend (00:33:56) Fastenal's Competitive Edge: Value Proposition and Culture (00:37:54) Growth and Market Share: Fastenal's Expansion Strategies (00:44:52) Financial Discipline and Capital Allocation (00:50:14) Lessons from Fastenal: Transparency and In-Person Visits

This is Zack Fuss. Today we are breaking down Merck, one of the world's largest and oldest pharmaceutical companies. The company has been shaping medicine and fostering innovation for over 130 years. From its humble beginnings as a small family pharmacy in Germany, today's iteration of Merck has transformed into a nearly $300 billion market cap business with particular strength in oncology.  At the heart of Merck's recent success is Keytruda, arguably the world's most important cancer drug. This single medication now generates over $25 billion in annual revenue. But, Merck's story is not only about Keytruda, it's about a company that's consistently pursued innovative science, combined with a handful of bold decisions, which resulted in the development of some of the world's first vaccines and breakthroughs in diabetes treatment.  To break down Merck, I am joined by Ashwin Varma, who is currently a medical student at UT Health San Antonio. We unpack Merck's business model, explore its industry-leading oncology franchise, and examine its pipeline of future drugs, and understand how they have navigated the complex world of pharmaceutical patents and regulation. Please enjoy this Breakdown on Merck.  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 Alphasense. AlphaSense has completely transformed the research process with cutting-edge AI technology and a vast collection of top-tier, reliable business content. Imagine completing your research five to ten times faster with search that delivers the most relevant results, helping you make high-conviction decisions with confidence. AlphaSense provides access to over 300 million premium documents, including company filings, earnings reports, press releases, and more from public and private companies. Invest Like the Best listeners can get a free trial now at Alpha-Sense.com/Invest and experience firsthand how AlphaSense and Tegas help you make smarter decisions faster. — This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. Go to eightsleep.com/breakdowns and use the code glueguys for $350 off.  ----- 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 (00:05:50) History and Evolution of Merck (00:08:32) Merck's Blockbuster Era and Challenges (00:10:51) Understanding the Pharma Industry (00:15:32) Merck's Current Business and Financials (00:20:48) Patent Protection and R&D Strategies (00:35:00) Checkpoint Inhibitors: A Breakthrough in Cancer Treatment (00:35:54) The Rise of Keytruda: From Trials to Triumph (00:37:56) Keytruda's Expanding Indications and Market Impact (00:39:56) Understanding Cancer Therapy Lines (00:42:09) Keytruda's Competitive Landscape and Future Challenges (00:46:33) Merck's Strategy for Post-Patent Success (00:57:41) Leadership and Organizational Structure at Merck (01:04:01) Lessons from breaking down Merck