The Synopsis

Willis Johnson, Founder of Copart, went from being a liquidator to a critical service provider for insurance companies. Topics covered include Copart's early business career, industry dynamics, Copart becoming a salvage marketplace auction leader, cultural factors distinguishing great companies, Copart vs IAA competition, Copart's revenue streams and capital allocation strategy, analyzing return on invested capital and land ownership, international expansion opportunities, growth opportunities and pathways for Copart, and potential risks and challenges for the future.

In this podcast on RH, Speedwell Research covers everything from Restoration Hardware's beginnings as just a catalog in a personal living room to massive multi-story Galleries with restaurants that generate >$10mn. Investors can learn much from the early business failings, as well as the incredible turnaround and business transformation Gary Friedman led. We draw on Speedwell's 86 page research report, released in March 2023, to teach you not just about RH, but also about novel customer acquisition strategies, the dangers of promotions, how to build a coherent consumer value prop, and show how changing a business's strategy requires reworking every element of the company. Enjoy! -*-*-*-*-*-*-*-*-*-*- Show Notes (0:00) Intro (1:31) Early Founding History, Novel Customer Acquisition Strategy (5:48) First IPO in 1998 (8:23) Restoration Hardware Model Starts to Break (9:29) Gary Friedman Background and Takeover of Restoration Hardware (14:43) Initial Business Changes Friedman Makes (18:32) Second IPO in 2012, Starting to Envision a Luxury Retailer (24:27) Ascent of Luxury Mountain, The Mega Gallery Strategy (26:43) Solving a Key Business Shortcoming, The King Midas Problem, What Meituan has in Common with RH (32:26) Source Book Strategy and When Mailing a 540 Page Catalog Makes Sense (35:12) Growing Pain Period, Reworking Key Elements of the Business (45:13) RH Membership and the Problems with Promotions (52:07) What Job RH Does, The Consumer's Hierarchy of Preference (54:35) The Value Capture Index and How to Assess Retailer's Pricing Strategies, Competition, Disadvantages of Ecommerce (1:06:03) ROIC and Margins, Reverse DCF, Revenue Build (1:14:50) RH Brand Extensions, Private Jets and Yacht, Guesthouse (1:20:45) Acquisitions, Waterworks, Apple vs LVMH Model (1:26:05) What Could the Business Look Like in 10 Years? (1:27:46) Pre-Mortem -*-*-*-*-*-*-*-*-*-*- Purchase Speedwell's full ~21,000 word RH report here: https://speedwellresearch.com/2023/03/22/rh-deep-dive/ Speedwell's free newsletter: https://speedwellsnippets.substack.com/ Free Piece on The Value Capture Index: https://speedwellsnippets.substack.com/p/the-consumers-hierarchy-of-preferences-dc6 More on Speedwell: https://speedwellsnippets.substack.com/p/speedwell-research-process-and-philosophy Twitter: @Speedwell_LLC Threads: @speedwell_research Email us at info@speedwellresearch.com for any questions, comments, or feedback -*-*-*-*-*-*-*-*-*-*- Disclaimer Nothing in this podcast is investment advice nor should be construed as such. At the time of publishing, one or more contributors to the podcast had a position in RH. Furthermore, accounts one or more contributors advise on may also have a position in RH. This may change without notice. Please see our full disclaimers here: https://speedwellresearch.com/disclaimer/

In this inaugural podcast, Speedwell Research goes into details on their ~170 page, January 2023 report on Meta Platforms ($META). We cover a list of questions including 1) how resilient are social networks and why did Friendster and MySpace disapear? 2) how does ad tech work and did Apple's policies permanently impair Meta? 3) what "job" does Facebook and Instagram do? 4) is the metaverse a dealbreaker for investors? 5) and much more. -*-*-*-*-*-*-*-*-*-*- Show Notes (0:00) Intro (3:09) History: Six Degrees, Friendster, MySpace, and early Facebook (28:32) Jobs to Be Done: What consumer needs does Facebook serve and the degradation of the network (44:57) Meta's ability to spin up new apps, failed apps, Threads, how sticky are network effects, Tencent's QQ (59:04) Monetization formula, advertising history, and primer on the digital ad ecosystem (1:19:25) Apple Privacy Changes, ATT, IDFA, Return on Ad Spend, auction dynamics (1:38:48) Can Meta recover from their data loss? Inverting the question with the reverse DCF to see implied growth. (1:43:47) WhatsApp, IRR Math (1:47:23) Metaverse Spend, Financial Returns, Strategy (1:53:36) Year of Efficiency -*-*-*-*-*-*-*-*-*-*- Purchase Speedwell's full ~47,000 word Meta report here: https://speedwellresearch.com/2023/01/17/meta-platforms-deep-dive/ Speedwell's free newsletter: https://speedwellsnippets.substack.com/ More on Speedwell: https://speedwellsnippets.substack.com/p/speedwell-research-process-and-philosophy Twitter: @Speedwell_LLC Threads: @speedwell_research Email us at info@speedwellresearch.com for any questions, comments, or feedback -*-*-*-*-*-*-*-*-*-*- Disclaimer Nothing in this podcast is investment advice nor should be construed as such. At the time of publishing, one or more contributors to the podcast had a postion in Meta. Furthermore, accounts one or more contributors advise on may also have a position in Meta. This may change without notice. Please see our full disclaimers here: https://speedwellresearch.com/disclaimer/