TIVP68 (Video): CoStar Group (CSGP): The Real Estate Empire Making a $5 Billion Bet w/ Shawn O'Malley & Daniel Mahncke
The Intrinsic Value Podcast - The Investor’s Podcast Network
Share Issuance, Acquisitions and Dilution
Shawn discusses CoStar's historical equity raises, dilution, and returns from opportunistic deals.
Shawn O'Malley and Daniel Mahncke explore CoStar Group (ticker: CSGP), the dominant provider of commercial real estate data and analytics, and assess whether the company's massive $5 billion bet on Homes.com can successfully crack the residential real estate market dominated by Zillow, or whether this ambitious expansion will destroy shareholder value.
IN THIS EPISODE YOU’LL LEARN: 00:00:00 - Intro 00:01:42 - Why the company has delivered nearly 60 consecutive quarters of double-digit revenue growth 00:09:17 - How CoStar built a dominant, near-monopoly position in commercial real estate data and analytics 00:18:30 - How CoStar generates roughly 50% profit margins on its core B2B business 00:44:12 - What makes CoStar's data moat so durable and difficult for competitors to replicate 00:48:12 - How the company's acquisition-driven strategy has fueled decades of growth 00:56:22 - Why CoStar is investing $5 billion into Homes.com to take on Zillow and Realtor.com 00:58:21 - Competitive landscape in the residential real estate marketplace 01:08:41 - Whether CoStar's massive residential bet will pay off or destroy shareholder value 01:23:57 - How Shawn and Daniel value CoStar and whether CSGP belongs in the portfolio
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join The Intrinsic Value Conference in Omaha this May 1, 2026!
- Learn how to join us in Omaha for the Berkshire meeting here.
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Shawn, Kyle, Daniel, and the other community members.
- Track The Intrinsic Value Portfolio.
- Costar pitch on the Value Investors Club.
- Drew Cohen’s podcast on CoStar.
- Follow Daniel on X and Linkedin.
- Follow Shawn on X and Linkedin.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
NEW TO THE SHOW?
- Follow our official social media accounts: X (Twitter) | LinkedIn | Facebook.
- Browse through all our episodes (complete with transcripts) here.
- Try Shawn's favorite tool for picking stock winners and managing our portfolios: TIP Finance.
- Enjoy exclusive perks from our favorite Apps and Services.
- Learn how to better start, manage, and grow your business with the best business podcasts.
References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor's Podcast Network is not responsible for any claims made by them.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
The AI-powered Podcast Player
