356 episodes

Exploring the ideas, methods, and stories of people that will help you better invest your time and money. Learn more and stay-up-to-date at https://joincolossus.com/

Invest Like the Best with Patrick O'Shaughnessy Colossus

    • Business
    • 4.8 • 2K Ratings

Exploring the ideas, methods, and stories of people that will help you better invest your time and money. Learn more and stay-up-to-date at https://joincolossus.com/

    Lydia Jett - Investing in E-commerce

    Lydia Jett - Investing in E-commerce

    My guest today is Lydia Jett, Managing Partner of SoftBank Investment Advisors. Lydia leads the team’s consumer, internet, and e-commerce investments and has worked with many of the most significant consumer platforms in the world, including as a board member of Coupang and Flipkart. We cover all aspects of e-commerce and explore Lydia’s evolution as an investor alongside Masa Son at SoftBank. Please enjoy my conversation with Lydia Jett. 
     
    For the full show notes, transcript, and links to mentioned content, check out the episode page here.
     
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    This episode is brought to you by Tegus. Tegus streamlines the investment research process so you can get up to speed and find answers to critical questions on companies faster and more efficiently. The Tegus platform surfaces the hard-to-get qualitative insights, gives instant access to critical public financial data through BamSEC, and helps you set up customized expert calls. It’s all done on a single, modern SaaS platform that offers 360-degree insight into any public or private company. As a listener, you can take Tegus for a free test drive by visiting tegus.co/patrick. And until 2023 every Tegus license comes with complimentary access to BamSec by Tegus.
     
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    Today's episode is brought to you by Brex, the integrated financial platform trusted by the world's most innovative entrepreneurs and fastest-growing companies. With Brex, you can move money fast for instant impact with high-limit corporate cards, payments, venture debt, and spend management software all in one place. Ready to accelerate your business? Learn more at brex.com/best.
     
    -----
     
    Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
     
    Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
     
    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: @patrick_oshag | @JoinColossus
     
    Show Notes
    [00:02:34] - [First question] - What curiosity thread she’s been pulling on thus far in her career
    [00:05:17] - The biggest felt differences doing things one way for a decade and changing now
    [00:07:08] - Learning about tailwinds and what the predominant ones are that exist today
    [00:08:38] - How much room to go there is left in the world transitioning to e-commerce
    [00:10:44] - Competitive frontiers that exist today in e-commerce
    [00:12:14] - What drives companies that grow faster than their competitors
    [00:13:15] - What areas the world’s most innovative e-commerce companies are focused on
    [00:16:38] - Unique characteristics that they select for in ecommerce CEOs and founders
    [00:17:44] - Which country she would send an American investor to in order to learn more
    [00:19:03] - Upside down approaches to e-commerce that aren’t common in America yet
    [00:20:15] - Subcategories and sub sectors she’s most drawn towards lately
    [00:23:05] - Lessons learned about business models that don’t work in e-commerce
    [00:27:47] - What western investors should know about Coupang 
    [00:30:12] - Everything she’s learned about vertical integration
    [00:33:01] - Everything she’s learned and cares about in regards to margins
    [00:34:24] - Evaluating a younger company’s ability to drive margins in the future
    [00:37:17] - The most extreme version of efficiency gain she’s seen deployed
    [00:39:06] - Whether or not the public perception of SoftBank’s simplified approach is accurate
    [00:41:27] - The role the size of assets plays at SoftBank
    [00:47:42] - Focusing on efficiency and smart allocation first before trying to scale 
    [00:50:33] - Companies as products that investors

    • 1 hr 7 min
    Josh Wolfe & Chris Power - Factories of the Future

    Josh Wolfe & Chris Power - Factories of the Future

    My guests today are Josh Wolfe and Chris Power. Josh will be a familiar voice to many of you and is the co-founder and General Partner of Lux Capital. Chris is the founder and CEO of advanced manufacturing start-up, Hadrian. Most of our discussion centers on the need to modernize the factories that supply our space and defense industries. But given the current market environment, we also talk about capital conditions and the responsibility to build products that really matter. Please enjoy this conversation with Josh Wolfe and Chris Power.
     
    For the full show notes, transcript, and links to mentioned content, check out the episode page here.
     
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    This episode is brought to you by Tegus. Tegus streamlines the investment research process so you can get up to speed and find answers to critical questions on companies faster and more efficiently. The Tegus platform surfaces the hard-to-get qualitative insights, gives instant access to critical public financial data through BamSEC, and helps you set up customized expert calls. It’s all done on a single, modern SaaS platform that offers 360-degree insight into any public or private company. As a listener, you can take Tegus for a free test drive by visiting tegus.co/patrick. And until 2023 every Tegus license comes with complimentary access to BamSec by Tegus.
     
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    Today's episode is brought to you by Brex, the integrated financial platform trusted by the world's most innovative entrepreneurs and fastest-growing companies. With Brex, you can move money fast for instant impact with high-limit corporate cards, payments, venture debt, and spend management software all in one place. Ready to accelerate your business? Learn more at brex.com/best.
     
    -----
     
    Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
     
    Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
     
    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: @patrick_oshag | @JoinColossus
     
    Show Notes
    [00:02:40] - [First question] - An overview of the precision manufacturing industry writ large
    [00:08:28] - Why the manufacturing sector has so many great investment opportunities
    [00:12:58] - Anduril Breakdown; What Hadrian in its final form will unlock for manufacturing
    [00:16:08] - What the demand side looks like for manufacturers in its current state today 
    [00:18:29] - How the nature of demand will shift for this style of manufacturing in the future
    [00:22:51] - Important rare earth materials, supply chain constraints, and the revival of commodities 
    [00:27:55] - The key set of jobs being done by mom and pop shops that could be innovated on and done within a Hadrian factory 
    [00:30:35] - What is going on inside of a Hadrian factory and how they will evolve over time 
    [00:32:10] - Prosecuting diligence on someone's ability to execute on their behalf
    [00:37:14] - The PhD arrogance trap and how a Hadrian machine will be better in five years from now
    [00:39:44] - Units of innovation and optimization driven by software 
    [00:41:43] - Walkthrough of the bubble and anti-bubble concept and funding companies in today’s markets  
    [00:48:08] - Breadth of ability versus focus and selling parts to buyers early on
    [00:50:42] - Lessons learned and advice for understanding the focus problem 
    [00:52:32] - Whether or not the climbing costs of experimentation is a bad thing
    [00:56:39] - Fat startup vs. lean startups and making the hardest irreversible decision during Hadrian’s early days
    [00:58:31] - Enduring more schlep work than less being a good signal
    [00:59:06] - Chris

    • 1 hr 9 min
    Martin Casado - The Past, Present, and Future of Digital Infrastructure

    Martin Casado - The Past, Present, and Future of Digital Infrastructure

    My guest today is Martin Casado. Martin is a general partner at Andreessen Horowitz where he focuses on digital infrastructure. Before joining a16z, Martin pioneered software-defined networking and co-founded Nicira, which was bought by VMware for $1.3 billion in 2012. Martin has studied, built, and invested in digital infrastructure his whole career and is the perfect person to discuss the most interesting aspects of the industry. Please enjoy this great conversation with Martin Casado.
     
    For the full show notes, transcript, and links to mentioned content, check out the episode page here.
     
    -----
     
    This episode is brought to you by Tegus. Tegus streamlines the investment research process so you can get up to speed and find answers to critical questions on companies faster and more efficiently. The Tegus platform surfaces the hard-to-get qualitative insights, gives instant access to critical public financial data through BamSEC, and helps you set up customized expert calls. It’s all done on a single, modern SaaS platform that offers 360-degree insight into any public or private company. As a listener, you can take Tegus for a free test drive by visiting tegus.co/patrick. And until 2023 every Tegus license comes with complimentary access to BamSec by Tegus.
     
    -----
     
    Today's episode is brought to you by Brex, the integrated financial platform trusted by the world's most innovative entrepreneurs and fastest-growing companies. With Brex, you can move money fast for instant impact with high-limit corporate cards, payments, venture debt, and spend management software all in one place. Ready to accelerate your business? Learn more at brex.com/best.
     
    -----
     
    Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
     
    Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
     
    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: @patrick_oshag | @JoinColossus
     
    Show Notes
    [00:02:43] - [First question] - The state of the digital infrastructure industry today 
    [00:04:02] - The major stages and eras of cloud technology 
    [00:06:30] - Overview of Dropbox’s story and the two major trends at the time of its emergence
    [00:10:12] - Lost margin and lost market cap from big users of the public cloud 
    [00:12:14] - Whether or not there is a headwind coming for public cloud providers
    [00:14:07] - The base level primitives of the digital world and innovation within those areas
    [00:17:33] - How entrepreneurs might go after the biggest public cloud providers
    [00:19:37] - His view on API first companies and granular monetizable units in growing markets
    [00:23:20] - Developer facing tools and what works well when going to market 
    [00:25:34] - Lessons learned about successfully building relationships between a company and developers as a buying class 
    [00:27:12] - The difference between a front-end and back-end developer and what is changing in their responsibilities 
    [00:28:45] - What he looks for as an investor when he’s processing a new API first company
    [00:30:31] - Common redflags and disqualifying observations for an API first company 
    [00:31:59] - Pricing usage and building a revenue model around one of these businesses
    [00:33:49] - Reasons why this proliferation is happening and important parts of the data stack
    [00:36:35] - Frank Slootman Episode; Snowflake’s offering for their users, their explosive growth, and primitives in their sector
    [00:39:06] - The history of digital security and potential opportunities as an investor
    [00:40:19] - How digital infrastructure intersects with the real

    • 54 min
    Aswath Damodaran - Making Sense of the Market

    Aswath Damodaran - Making Sense of the Market

    My guest today is Aswath Damodaran, a Professor of Finance at NYU’s Stern School of Business. Aswath is one of the clearest teachers of investing and finance in our industry and through his blog, books, and YouTube has open-sourced his wisdom for decades. This conversation is a masterclass of key investing concepts. We discuss inflation, narratives, disruption, the evolution of alpha and edge, and his thoughts on ESG. Please enjoy this great conversation with Aswath Damodaran.
     
    For the full show notes, transcript, and links to mentioned content, check out the episode page here.
     
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    This episode is brought to you by Canalyst. Canalyst is the leading destination for public company data and analysis. If you're a professional equity investor and haven't talked to Canalyst recently, you should give them a shout. Learn more and try Canalyst for yourself at canalyst.com/Patrick. 
     
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    This episode is brought to you by Brex. Brex is the integrated financial platform trusted by the world's most innovative entrepreneurs and fastest-growing companies. With Brex, you can move money fast for instant impact with high-limit corporate cards, payments, venture debt, and spend management software all in one place. Ready to accelerate your business? Learn more at brex.com/best.
     
    -----
     
    Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
     
    Past guests include Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
     
    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: @patrick_oshag | @JoinColossus
     
    Show Notes
    [00:02:43] - [First question] - How he thinks about inflation as a now dominant force
    [00:04:33] - Why inflation is so important across the spectrum
    [00:09:02] - Big lessons from other periods of historically high inflation writ large
    [00:10:45] - Reasons why equities as an asset class struggle in high inflation environments
    [00:15:21] - The relationship betweens goods versus services in times of high inflation
    [00:16:59] - Broader economic implications especially for income inequality
    [00:19:03] - The Fed taking inflation seriously now when they didn’t and thoughts on the policy response to today’s situation
    [00:21:05] - How smart companies are defensively adjusting to inflation
    [00:24:38] - Thoughts on returns on invested capital with emphasis on invested capital 
    [00:27:46] - The importance of a capital allocation skill-set for executive team members
    [00:29:32] - Further historic lessons and how he’s being defensive against inflation
    [00:33:09] - Lessons learned about Amazon valuing them every year since their inception
    [00:37:50] - How to figure out a new company’s narrative and the story they’re telling
    [00:42:25] - Whenever he sees Thanos in the Avengers he thinks of Amazon
    [00:44:51] - Thoughts on Facebook, Apple and Microsoft
    [00:48:26] - The evolution of edge and the search for alpha
    [00:54:37] - Whether or not there’s utility in studying other investors 
    [00:57:16] - Skill versus luck and the most common valuation mistakes he’s made
    [00:59:09] - Assuming long-term growth rates and changing company life cycles
    [01:02:02] - Momentum and Value investing in today’s market
    [01:07:24] - Differences between interest rates and discount rates in regards to inflation
    [01:10:29] - Thoughts on equity risk premium in a market like this
    [01:12:00] - How today’s market affects early stage equity investment
    [01:14:36] - The growing popularity of ESG and his seemingly contrarian view on it
    [01:24:03] - Nature of disruption as a force and companies that are protected from it
    [01:28:24] -

    • 1 hr 55 min
    Anduril: Building the Future of Defense - [Business Breakdowns, EP. 59]

    Anduril: Building the Future of Defense - [Business Breakdowns, EP. 59]

    Today, we are running a special episode of Business Breakdowns. With geopolitics playing an increasingly important role in society again, this episode with Anduril’s CEO offers an inside look at the state of the defense industry and how it is changing. If you enjoy this episode, subscribe to Business Breakdowns on your preferred podcast player, where you’ll find past episodes on Block, Goldman Sachs, AutoZone and many others.
     
    Today, we are breaking down Anduril. Anduril builds high tech defense systems for the US Department of Defense and its allies. Crucially, it does so with speed that emanates from Silicon Valley. 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.
     
    To break down Anduril, I’m joined by the company’s CEO and co-founder, Brian Schimpf. We discuss the history of the defense industry, how Anduril’s business is counter positioned against the legacy cost-plus model, and what Brian has learned about selling to the DoD. Please enjoy this breakdown of Anduril.
     
    For the full show notes, transcript, and links to mentioned content, check out the episode page here.
     
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    This episode is brought to you by Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. 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.
     
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    This episode is brought to you by Daloopa. Daloopa streamlines a major pain point for investors. By capturing all of a company's KPIs and adjusted financials into their database - Daloopa makes it easy to quickly update your models for what matters. Daloopa uses AI to find every KPI disclosed - from charts, to text, and even from footnotes of investor presentations. Daloopa updates these KPIs and data points in your existing Excel models in one click, regardless of your source or format. Test Daloopa for free at daloopa.com/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
     
    Show Notes
    [00:02:52] - [First question] - The history of defense technology and the technological and competitive landscape when he set out to build Anduril
    [00:08:22] - What the early experience was like when approaching the government and finding an early adopter
    [00:12:44] - Necessity being the mother of invention when it came to developing drones
    [00:16:37] - What it’s like to develop hardware and software products at the same time 
    [00:20:26] - How the defense business complex works economically and overview of the detailed cost plus model
    [00:24:44] - The state of military technology and military conflict today writ large
    [00:31:10] - Are we heading to a future where warfare is mostly machine against machine? 
    [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 they’ve 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 he’s had to make through Anduril’s history 
    [00:53:51] - How

    • 1 hr 10 min
    Tobi Lütke - Embrace the Unexpected

    Tobi Lütke - Embrace the Unexpected

    My guest today is Tobi Lütke, co-founder and CEO of Shopify. Having first spoken to Tobi at the beginning of the pandemic, just two months into it, this felt an opportune moment to revisit Shopify and the world through Tobi’s eyes. Among many things, we discuss Shopify’s evolution into the world of atoms-based building through Shopify’s fulfillment network, the value of infrastructure writ large, and the impact of market volatility on day-to-day business building. Please enjoy my conversation with Tobi Lütke.
     
    For the full show notes, transcript, and links to mentioned content, check out the episode page here.
     
    -----
     
    This episode is brought to you by Canalyst. Canalyst is the leading destination for public company data and analysis. If you're a professional equity investor and haven't talked to Canalyst recently, you should give them a shout. Learn more and try Canalyst for yourself at canalyst.com/Patrick. 
     
    -----
     
    This episode is brought to you by Brex. Brex is the integrated financial platform trusted by the world's most innovative entrepreneurs and fastest-growing companies. With Brex, you can move money fast for instant impact with high-limit corporate cards, payments, venture debt, and spend management software all in one place. Ready to accelerate your business? Learn more at brex.com/best.
     
    -----
     
    Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
     
    Past guests include Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
     
    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: @patrick_oshag | @JoinColossus
     
    Show Notes
    [00:02:44] - [First question] - His interest in infrastructure as a whole and why it’s underrated
    [00:07:18] - Whether or not we’re currently building enough digital infrastructure 
    [00:09:45] - Base level principles for decision making around building infrastructure 
    [00:13:17] - How much room is left for innovation and whether or not we’ll just reinvent basic human instincts
    [00:15:22] - Ways new ideas are fed into a product funnel at Shopify and greenlit
    [00:19:34] - Solving eCommerce infrastructure and what he attributes to Shopify’s success
    [00:24:23] - Overview of the Shopify Network and how it’s evolved over time 
    [00:31:04] - Lessons learned in an atom-driven world in regards to fulfillment and logistics
    [00:34:37] - Common ways bits thinkers are often wrong when solving atom problems
    [00:35:50] - Spreadsheets tend to win meetings and how the ROI on a fulfillment network impacts its ecosystem
    [00:40:26] - Navigating becoming an aggregator that sits on top of their merchants and whether or not there are plans to participate as a distributor
    [00:45:45] - Fair market value, what it’s been like managing through such a volatile market, and important takeaways
    [00:50:54] - Thoughts on capital allocation decisions as Shopify continues to grow
    [00:53:25] - Advice for company leaders effectively communicating with their teams about stock-based compensation 
    [00:59:04] - How much COVID altered their trajectory and what he’s most interested in as he looks out to the future
    [01:03:45] - What he’s learned about blockchains and the crypto space given recent events
    [01:08:45] - A new idea he’s encountered recently that he’s fallen in love with 

    • 1 hr 24 min

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