Sands Capital - What Matters Most: Recent Episodes
Sands Capital
Go inside the businesses driving global innovation, changing the way we live and work. Sands Capital is an active, long-term investor, and each podcast in our What Matters Most series offers investors an in-depth look at a particular company, explains how our high-conviction strategy led us to target them, and why we expect them to be a leader going forward. https://www.sandscapital.com/WMM-Disclosure
In this episode of What Matters Most, we delve into the world of Titan, India’s leading jewelry and watch retailer, with Sr. Research Analyst Massimo Morolo. Explore the cultural significance of gold in India, the dynamics of the fragmented jewelry market, and Titan’s unique advantages as a trusted, vertically integrated brand. The conversation highlights Titan’s potential to further consolidate the industry and increase its market share as well as its commitment to sustainability and ethical sourcing in its gold supply chain. Tune in to discover how Titan is shaping the future of jewelry retail in India.
Show Notes
- (1:14) The Promising Business Space of the Indian Jewelry Industry
- (2:34) Titan's Advantage as a Trusted Brand
- (5:18) Differentiating Titan from Unorganized Mom-and-Pop Jewelers
- (17:09) Cultivating Relationships and Localized Designs
- (26:04) Vertical Integration and Staying Ahead of Trends
- (31:24) Sustainability and Ethical Sourcing
Related content from Sands Capital:
- Sign up to receive our monthly Perspectives newsletter: Our latest thinking on innovation investing, long-term capital, and culture
In case you missed it: What Matters Most Episode 10
- Placing Bets on Innovation: Flutter's Revolution in Online Gambling
Catch our most popular episodes from this season:
- Globant Takes A Design-First Approach to Pure Play Digital Service
- Revolutionizing Public Safety: The Axon Ecosystem
- The Hidden Player in the Semiconductor Boom
Follow What Matters Most wherever you listen to podcasts and never miss an episode.
Learn more about Sands Capital, sign up for our newsletter, and follow us on LinkedIn.
Review our podcast season and episode disclosures here. Additional disclosures can be reviewed at www.sandscap.com/disclosures.
Dive into the dynamic world of online sports betting in this episode of What Matters Most. We sit down with Katherine Bates, research analyst at Sands Capital, to discuss the rise and strategies of Flutter, the world's largest online sportsbook and gaming operator. Discover how Flutter is leveraging technology, regulatory changes, and a deep understanding of customer behavior to redefine the betting experience. From the intricacies of in-game betting to the challenges of responsible gambling, this episode offers a compelling glimpse into the high-stakes world of online betting. Tune in to learn more about Flutter's growth formula and its potential impact on the future of global online gambling.
Show Notes
- (2:15) Flutter's Expansion, Mobile Penetration and Convenience
- (4:07) Flutter's Innovation in Parlay Betting
- (6:35) Flutter's Position in the Industry
- (9:26) Flutter's Advantage in Odds Pricing
- (12:04) The Other Players in the Space
- (17:10) Customer Acquisition and Competitive Advantages
- (24:10) Addressing Problem Gambling
- (31:32) Licensing Fees and League Relationships
Related content from Sands Capital:
- Sign up to receive our monthly Perspectives newsletter: Our latest thinking on innovation investing, long-term capital, and culture
- High Octane Investing: Inside the Formula One Phenomenon
In case you missed it: What Matters Most Episode 9
- Kaspi: The Super App Reshaping Kazakhstan's Financial Landscape
Catch our most popular episodes from this season:
- Globant Takes A Design-First Approach to Pure Play Digital Service
- Revolutionizing Public Safety: The Axon Ecosystem
- The Hidden Player in the Semiconductor Boom
Follow What Matters Most wherever you listen to podcasts and never miss an episode.
Learn more about Sands Capital, sign up for our newsletter, and follow us on LinkedIn.
Review our podcast season and episode disclosures here. Additional disclosures can be reviewed at www.sandscap.com/disclosures.
Explore digital innovation in Kazakhstan in this episode of What Matters Most, in which we spotlight Kaspi’s compelling super app ecosystem, which boasts nearly 70% of the country’s adult population as daily active users. Research Analyst Brian Crofton guides us through Kaspi’s growth into the country’s premier digital financial services company. Uncover the distinct challenges and prospects of operating and investing in Kazakhstan, a geopolitically intriguing emerging market, and learn how Kaspi is revolutionizing the financial sector, boosting consumer interaction as it cleverly layers its platform, and hoping to accelerate the future of digital finance.
Episode Transcript Available Here.
Show Notes:
- (02:18) What is a fintech, really? And the story of Kaspi’s super app transformation
- (04:26) An overview of the three main business lines and a strong business model
- (09:00) “Now let’s plop it [the business model] into Kazakhstan.”
- (18:03) Synergies across the network and Brian’s favorite insight into Kaspi
- (20:08) Mechanics of the business: An initial public offering (twice) and the Baring Vostok connection
- (25:38) Brian breaks down Kaspi’s relationship with Kazakhstan and Kazakhstan’s relationship with the elephant in the room.
- (32:23) Investing in businesses domiciled in Kazakhstan comes with some additional research.
- (35:48) Growth opportunities for Kaspi and the potential to reach maximum penetration
- (40:27) Careful not to understate the potential value of layering new services on an existing platform
Related content from Sands Capital:
- Banking on Emerging Markets (article)
- Digital Transformation Spurs Financial Inclusion in Kazakhstan (article)
- Sign up to receive our monthly Perspectives newsletter: Our latest thinking on innovation investing, long-term capital, and culture
In case you missed it: What Matters Most Episode 8
- Inside Cadence: The Software Powering Semiconductor Breakthroughs.
Catch our most popular episodes from this season:
- Globant Takes A Design-First Approach to Pure Play Digital Service
- Revolutionizing Public Safety: The Axon Ecosystem
- The Hidden Player in the Semiconductor Boom
Follow What Matters Most wherever you listen to podcasts and never miss an episode.
Learn more about Sands Capital, sign up for our newsletter, and follow us on LinkedIn.
Review our podcast season and episode disclosures here. Additional disclosures can be reviewed at www.sandscap.com/disclosures.
In this episode of What Matters Most, Sands Capital Sr. Research Analyst Daniel Pilling takes us on a deep dive into the world of Cadence, the leading software provider in the semiconductor industry. From the evolution of semiconductor design to the potential of generative AI, we explore the intricate processes and challenges in chip design. We delve into the cyclical nature of the semiconductor industry, the value addition in both leading edge and analog chips, and the strategic role Cadence plays in this dynamic ecosystem. With their software integrated into the manufacturing process of semiconductors, Cadence has the potential to shape the future of the industry.
Episode Transcript Available Here.
Show Notes:
- (00:53) Cadence’s two offerings
- (03:00) Overview of the semiconductor manufacturing process (if you didn’t listen to the Entegris episode) and the three-legged stool analogy
- (05:34) Electronic design automation (EDA) tools and evolution of semiconductor design process
- (09:52) Physical limitations, shrinking transistors, and the laws of physics
- (13:04) Error reduction, adapting to increasing complexity, and generative AI
- (17:17) Daniel’s five- to 10-year view on whether AI is a future alternative to EDA
- (19:00) Who actually uses Cadence software?
- (21:49) A counter to the cyclical nature of the semiconductor industry
- (23:31) The value added in analog chips, and legacy Cadence software
- (25:58) Frequency of chip re-architecting
- (28:22) Management team and a second act
- (30:55) Risks and how Cadence can benefit from the Jevons Paradox
- (34:25) Daniel’s not worried about “the wall of worry.”
- (36:05) The end of Moore’s Law and the paradigm shift to quantum chips
- (40:36) How did Daniel become an investor?
- (44:44) Daniel’s closing hypothesis and conviction in investments
Related Content:
- Business Breakdowns Podcast: Daniel Pilling - Entegris: Solutions for Semiconductors
- What Matters Most, Episode 1: Entegris
- Sign up to receive our monthly Perspectives newsletter: Our latest thinking on innovation investing, long-term capital, and culture
In case you missed it: What Matters Most Episode 7
- Globant Takes A Design-First Approach to Pure Play Digital Service
Catch our most popular episodes from this season:
- Revolutionizing Public Safety: The Axon Ecosystem
- The Hidden Player in the Semiconductor Boom
- Dexcom’s Innovation in Diabetes Care: A Growth Story Unfolding
Follow What Matters Most wherever you listen to podcasts and never miss an episode.
Learn more about Sands Capital, sign up for our newsletter, and follow us on LinkedIn.
Review our podcast season and episode disclosures here. Additional disclosures can be reviewed at www.sandscap.com/disclosures.
If you’ve never thought about investing in IT services, this podcast episode could change your mind. Sr. Research Analyst Eric Black takes you through the investment case for Globant, the world’s largest pure play design-first digital services provider. Asset-light businesses such as Globant can be hard to evaluate, but the opportunities in the 1.5 trillion market of IT Services are undeniable. Eric helps us see why, unpacking the potential of AI, Globant’s strategic business partnerships, and the loyalty the company has generated from the more than 1,500 Fortune 500 and Fortune 2000 companies on its client list. Globant’s cutting-edge software solutions have made their way into products at Disney, ESPN, and Google and are making lives easier around the globe.
Episode Transcript Available Here
Show Notes
(01:50) Not a labor-cost arbitrage model
(03:44) The Disney Magic Band. The Globant product you’ve probably already seen.
(05:14) Tech companies don’t do everything in-house. Enter: Globant.
(06:59) What makes Globant a growth business?
(08:41) A Thought Leader in AI for the last decade and MaganifAI
(11:45) The research process into digital transformation
(14:31) A one-size-fits-all all approach would be antithetical to the way Globant operates
(18:26) The pandemic boost and a global presence
(21:51) “Value-added focus” and the power of a leader
(25:10) The competitive moat for a huge market and Globant’s potential advantages
(28:24) Competitors have the same advantages? Why we like Globant’s pure play angle.
(31:19) The disruptors lying in wait
(34:21) Staffing costs and flexing to keep margins high and remain profitable
(36:25) Researching a company operating in intangibles: what’s different?
(39:04) The portfolio managers visit Buenos Aires
(40:44) From “why would you invest” to “what’s the insight”?
(43:04) Responsible investing in human capital, labor rights and gender diversity
(44:49) Nefarious digital technology and cybersecurity - Globant’s response.
(49:26) Under the radar companies and enablers of big trends can make for great investments
(52:56) Quick recap of Season 2 episodes
Sign up to receive our monthly Perspectives newsletter: Our latest thinking on innovation investing, long-term capital, and culture
In case you missed it: What Matters Most Episode 6
Revolutionizing Public Safety: The Axon Ecosystem
Catch our most popular episodes from this season:
The Hidden Player in the Semiconductor Boom
Reliance Industries: Fueling India's Emerging Consumer
Dexcom’s Innovation in Diabetes Care: A Growth Story Unfolding
Follow What Matters Most wherever you listen to podcasts and never miss an episode.
Learn more about Sands Capital, sign up for our newsletter, and follow us on LinkedIn.
Review our podcast season and episode disclosures here. Additional disclosures can be reviewed at www.sandscap.com/disclosures.
Its mission is simple: protect life, preserve truth, and accelerate justice. As Axon Enterprises innovates to try to achieve that goal, its solutions are rapidly becoming the industry standard. In this episode of What Matters Most, Sands Capital Portfolio Manager and Sr. Research Analyst Danielle Menichella, CFA discusses the business’ journey from Taser maker to artificial intelligence-powered software developer. We’re diving deep into how its wide range of technologies work in tandem, what the future of public safety might look like—and why we believe all of this makes the business an attractive investment opportunity.
Show Notes
(2:22) Axon’s product line, from Tasers to body cameras
(6:50) The ethical considerations of investing in a manufacturer of weapons and surveillance equipment
(13:55) Eyeing untapped markets and finding opportunities in growing markets overseas
(19:55) Using artificial intelligence for faster redactions, transcriptions, and archiving of bodycam footage
(21:07) Navigating privacy concerns around surveillance devices and data storage
(27:15) Preserving human accountability as public safety technology advances
(35:50) The big question for Danielle: To be or not to be tased?Disclosures: www.sandscap.com/WWW-Disclosure
This episode of What Matters Most dives into the evolutionary journey of Visa, a titan in the payments industry. Discover how the company continues to thrive by enabling innovation. Join Sands Capital Portfolio Managers Sunil Thakor and Michael Raab as they unpack the company's history, technology, and the formidable network that cements its position as an industry leader. From IPO to the present, we dissect the anatomy of Visa's enduring success.
https://www.sandscapital.com/WMM-Disclosure
Reliance Industries’ portfolio of products and services touches almost every person in India on a daily basis—and fueled by favorable micro and macro trends, the company shows no signs of slowing down. In this episode, Sands Capital senior analyst Matt Luneburg, CFA explains why Sands Capital has a strong conviction in Reliance.
https://www.sandscapital.com/WMM-Disclosure
When Liberty Media bought the commercial rights to Formula One in 2017, it set a plan into motion: to transform this auto racing sport into a truly global phenomenon, backed by a strong brand and high-profile commercial partners. Sands Capital technology analyst Ben Betcher, CFA explains in this episode of What Matters Most, how Formula One’s tech-like business model differentiates it from other professional sports, and why it continues to drive interest from many investors.
Show Notes
(1:16) The business transformation of Formula One
(5:44) Understanding brand partners’ roles: From Mercedes to Amazon Web Services
(8:30) How the linear vs. streaming sea change impacts growth opportunity
(11:44) The Formula One platform: a tech-like business model
(13:30) Soaring team valuations
(15:54) The checkered history of Formula One
(17:39) An asset-light business approach
(18:07) Formula One’s competitive advantage
(20:38) The strength of a young and diverse audience
(21:25) Risks: rival leagues? sustainability?
(23:59) Improving monetization: The gamble of Las Vegas
(26:17) Growth drivers of promotion, sponsorship, advertising
(33:30) How Sands Capital analyzed and vetted Formula One as an investment opportunity
Disclosures: https://www.sandscapital.com/WMM-Disclosure
In a world where more than 500 million people battle known and undiagnosed diabetes, Dexcom stands out. This trailblazer in continuous glucose monitoring is on track for substantial growth amid evolving diabetes detection and treatment. In this episode, Senior Research Analyst Jenny Goldsmith, CFA details how Dexcom’s state-of-the-art software and predictive algorithms are revolutionizing diabetes care and why Goldsmith believes Dexcom’s distinctive edge translates into investment opportunities.
www.sandscapital.com/WMM-Disclosure
You’ll find semiconductors in just about every device with a plug, a power button, or a battery. In this episode of What Matters Most, Sands Capital technology analyst Daniel Pilling explains why Entegris, a critical player in the global semiconductor industry, is seeing rapid growth as the demand for artificial intelligence (AI) and machine learning intensifies.
https://www.sandscapital.com/WMM-Disclosure
Nearly every factory has room for more automation, with greater penetration in existing industries and expansion into new industries expected over the next decade. Sands Capital’s Suni Thakor and Danielle Menichella discuss why Keyence, a factory automation market leader that specializes in sensor and sensor systems, will likely be a beneficiary of that growth and what makes the company so unique within its sector.
Growth investing often focuses on innovation, but Sands Capital’s Michael Raab and Matthew Luneburg show Rentokil as an example of a growth business that favors refining what’s already working. Rentokil, a pest control industry leader, has consolidated its technician service routes to achieve efficiencies and a significant competitive advantage. Listen as Michael and Matt talk about how we built conviction in what may seem an unlikely investment for Sands Capital.
Listen as we discuss the fascinating growth story of Bio-Techne, a life sciences company that supplies over 500,0000 tools that power new scientific breakthroughs. Sands Capital’s Daniel Cheng and Sunil Thakor detail how Bio-Techne's diversified exposure to one of the most dynamic secular growth trends sets it apart, and why it's a high-conviction business for Sands Capital.
https://www.sandscapital.com/WMM-Ep5-Disclosure
Aptiv supplies computer technology to half of the world’s electrified vehicles. Next year they’ll lead the market in active safety solutions. Sands Capital’s Danielle Menichella and Dave Levanson discuss why we invest in Aptiv rather than trying to pick a winner from the crowded auto manufacturers race.
https://www.sandscapital.com/WMM-Ep4-Disclosure
Singapore-based mobile gaming and ecommerce company Sea has created multiple runways for long-term growth for Southeast Asia’s largest internet and technology company based on market cap. Sands Capital Senior Portfolio Manager Neil Kansari describes how our deep research helped us discover Sea’s visionary management and diversified growth strategy and led us to invest in the company’s IPO. https://www.sandscapital.com/WMM-Ep2-Disclosure
How did DoorDash break through the crowded field of last-mile logistics to hold one of 2020’s biggest public offerings? Sands Capital analysts Katherine Okon and Barron Martin share the story of the differentiated strategies that led to DoorDash’s more than 200% gross order value growth last year. Listen as they make the case for even more investment opportunities going forward. https://www.sandscapital.com/WMM-Ep1-Disclosure
In 2018, World Bank reported that just 21% of Latin American adults borrowed from a financial institution. This key insight spelled tremendous potential growth for MercadoLibre, the Argentine commence innovator. Director of Research Perry Williams and Research Analyst Judy Jiao go deep on how we built on this insight to identify MercadoLibre’spotential for vast business growth and to revolutionize quality of life in Latin America. https://www.sandscapital.com/WMM-Ep3-Disclosure