TIVP002: Coupang (CPNG): The Amazon of South Korea w/ Shawn O’Malley

25:37As a standalone business, though, Farfetch was not doing well and required cash infusions to remain viable. The company also had serious issues with order fulfillment, and to what extent Coupang can help solve that for them will really determine the worthwhileness of this investment. So far, there's been some progress in turning Farfetch around. From Q2 to Q3 of 2024, Farfetch's operating losses declined from$31 million to just$2 million. Here's a line from Bomb Kim on what more to expect with Farfetch. Quote, we hope in a few years we'll be having the conversation about how Coupang turned Farfetch into a business that transformed the customer experience around luxury fashion, while also providing strategic value for Coupang.

26:19It's too early for that conversation today. Even if that full potential is not fully realized, we're highly confident that this will prove to be a prudent financial decision. We're already executing on a plan to make Farfetch self-funding with no additional investment beyond the announced capital commitment. He continues saying, quote, luxury is a very large market segment, and it's one that hasn't been captured in any meaningful way by e-commerce players yet. We know marketplace, we know operations, we know how to focus on and drive innovation around customer experience. And we saw a business that we thought if it were run better at those sayings could be much more valuable and if run differently, could create possibly billions of dollars of equity value.

27:03And last quarter, Coupang launched R.Lux, a new luxury offering giving customers access to upscale beauty brands. They've partnered directly with luxury brands to provide what Bomb Kim calls a new kind of white glove service. Customers are able to purchase exclusive brands via Arlux and receive products from Rocket's next day or same day delivery in elegant, custom-designed packaging. So it's a merger of higher-end beauty products with world-class convenience and customer service. Just from going through Arlux's site, some of the brands they appear to offer are Estee Lauder, Aveda, Clinique, L 'Occitane, and dozens of others in that vein.

27:42Beyond first-party and third-party e-commerce and luxury goods, Coupang also does online grocery delivery, restaurant ordering and delivery like DoorDash, digital payments, and as I mentioned a bit earlier, streaming. Those services are largely bundled together under RocketWild memberships for a monthly fee of about$5.74 per month, which has increased by more than 50 % in the past year. Obviously, after raising RocketWild prices by so much in a year, Coupang is more seriously trying to monetize the value it creates for customers. While Coupang has probably hit a ceiling in South Korea in terms of attracting new active customers to the platform, about two-thirds of all of its active customers are RocketWild subscribers, and that number has been growing at over 20 % per year.

28:25So there could certainly be room to add a few more million subscribers, but at least in South Korea, I think it's really going to be a question of squeezing more revenue out of existing subscribers and customers than attracting new ones. And on that front, Coupang is seeing promising results too, with both subscribers and non-subscribers increasing their spending by 15 % year over year. In August of last year, Bomb Kim told investors that, quote, while new customers contribute to future growth, our growth today and tomorrow is powered primarily by the increasing spend of our existing customers.

28:56We can't stress enough how small a share we are of the massive and highly fragmented$560 billion commerce opportunity in the market and how early we are in that journey. So the vision for Coupang extends well beyond just e-commerce. In different ways, Coupang's management sees all types of commerce as growth opportunities for them. Most impressive to me, though, is that for each year someone is a Coupang subscriber, their total spending on Coupang increases. Someone who has been a subscriber for five years will spend nearly five times as much as they did in their first year as a subscriber. To achieve that, obviously, they're doing some incredible stuff to make their ecosystem so sticky and to draw people deeper and deeper into it.

29:38To that point, let me just share with you comments from real Coupang customers I found on Reddit. This commenter in a post about Rocket Wow prices rising 58 % said that, quote, I haven't been to a store in months. Coupang Wow is great for people who don't like going to the store, but want things quickly. I don't have to go to the store a few times a week to make sure I get fresh food. I don't have to wait in line after work or on the weekends, I don't have to worry if it is the second or fourth Sunday of the month, easily saves me two to three hours a week, if not more. And if you ever use Coupang Eats, you pay for your membership and a few deliveries a month with the discounts you get there too.

30:13One membership gets you discounts on food, free returns, next day delivery, a video streaming service, live sports, and discounts on restaurant deliveries, all for under 10 ,000 won. Best deal in Korea. That's a pretty compelling testimony I wasn't expecting to find on a post premised around criticizing the company for dramatically raising prices, but most of the comments actually said something similar that either the restaurant delivery, grocery delivery, or streaming services all by themselves were probably worth the cost of a subscription. After debuting in 2020, Coupang Eats was promptly named the best app of the year by Google Play and voted the most popular app in a survey of Korean users.

30:50And in early 2023, the unit economics for Coupang Eats became profitable for the first time. In the food delivery market, in terms of active users, Coupang ranks third currently in South Korea with over 3 million users versus 19.5 million for the market-leading food delivery app. At less than$70 per year, RocketWow costs about 0.22 % of the median annual income in South Korea, whereas Amazon Prime costs about 0.23 % of the median US income. So Coupang's subscription may be slightly cheaper, but this recent price hike brings Coupang roughly in line with where Amazon is. And rocket delivery is offered to non-subscribers as well, so long as they make a purchase for more than the equivalent of about$3.50.

31:34In response to complaints about the ramp up in subscription pricing, the company stated that they would save millions of Koreans about 970 ,000 won per year versus only charging less than 95 ,000 won. So by Coupang's calculations, at least, they create an order of magnitude more value for the regular customer than they charge, which to me sounds pretty sustainable. People will always complain about higher prices, but I think this is more an instance of Coupang normalizing its rates after years of undercharging rather than some shameless attempt to price gouge. The full statement from the company goes as follows, quote, new members of Coupang's WOW membership will likely see more discounts in the future.

32:15They send data from major organizations such as Statistics Korea. And assuming consumers' typical spending patterns, it is estimated that WOW members who routinely use all five services, including free shipping, returns, direct purchases, streaming, and food delivery, can save an average of 970 ,000 won per year compared to non-members. And for context, 970 ,000 won per year is about$700 versus, again, a membership fee of about $70 per year. And that is to say nothing about live sports media rights available to Rocket Wild members. In spring 2024, the Dodgers and Padres opened the regular season with two games in Seoul, for which tickets and live broadcasts in Korea were available exclusively to Rocket Wild members, marking the first time that regular season MLB games have ever been played in Korea.

33:04And in case you didn't know, Major League Baseball is very popular in South Korea. So as I've talked about, Coupang has penetrated deeply into the South Korean market and millions of people love RocketWow. The question then is, what does growth look like for Coupang going forward? It's fair to wonder if the company has already achieved its big picture ambitions and South Korea in some ways it has, though I think there's a lot of room left to drive more transactions on their platform and eventually raise RocketWow prices. All of Coupang's customer cohorts have continue to increase spending on the platform each quarter, thanks largely to the compounding value of RocketWall memberships.

33:41For example, if someone signs up for RocketWall to make use of Kupang Eats, they're more likely to buy products on Kupang's e-commerce site and vice versa. Each value add reinforces the entire ecosystem and draws people in. And while Kupang's e-commerce platform has pretty deep penetration at around 9 % market share, Kupang Eats has plenty of runway ahead for growth. So for better or worse, Coupang is strategically looking outside of South Korea for major growth drivers. My initial thought is that this probably isn't a great idea because other markets are already dominated by existing competitors and the advantages Coupang has in its home market may not translate into even nearby countries.

34:22In my opinion, it would be better, broadly speaking, for Coupang to focus on building even deeper moats around its businesses in South Korea and further monetizing its users there rather than allocating capital to markets where it has less clear advantages. For all its success, we all know that Amazon, for example, dominates the US, but it is by no means the e-commerce platform of choice for people in many of the other global markets it has tried to expand into. Expanding to a new country means starting from scratch in some ways to build out a new local logistics footprint while also having no network effects working in your favor, and having to navigate a new competitive environment, different environmental and business regulations, and just a different culture.

35:03Many of the things that were tailwinds in South Korea for Kupang become headwinds elsewhere. In 2021, Kupang announced a trial expansion into Japan, and less than two years later, it retreated from the country after concluding it couldn't compete with Shopee, Rakuten, and Amazon there. They were ambitiously aiming to deliver certain goods in just 10 minutes in parts of Tokyo, but obviously it became clear that the amount of money they need to invest to break into the country's markets was too big of a pill for them to swallow. And to the point on cultural nuances just being different, Coupang learned that in Japan, convenience stores end up being about three times larger on average than in South Korea, meaning it's much easier for people in Japanese cities to get most of what they need at a close by store.

35:47So immediately, any kind of rapid delivery service is just instantly less valuable relatively in Japan. And there's of course other differences too. South Koreans work longer hours than just about any other developed nation, and that leaves them with less discretionary time to go shopping for miscellaneous supplies and makes a service like Coupang's all the more attractive and even essential for daily life. As of 2017, South Korea ranked 16th globally in average annual working hours, while Japan ranked 43rd, so there's a meaningful gap in work-life balance between the countries. Not to say the Japanese don't like next day delivery or anything like that, but the point is that there are subtleties here that can explain why a service is a home run in one country and a flop in another.

36:30Having come up across stiff competition in Japan, Coupang's management thinks it has learned a thing or two from that experience and is now setting its sights on Taiwan and Singapore. And you can tell they're taking the opportunities here a bit more seriously. While they didn't offer Rocketwild memberships in Japan, Taiwan is the only country outside of South Korea where you can sign up for a Rocketwild membership. Sizable investments in the country have enabled them to do that by completing the construction of their second fulfillment center in late 2023, while also unveiling plans for a third.

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40:19That's theinvestorspodcast.com slash tip-finance. All right, back to the show. As of early last year, Coupang's cumulative investment in Taiwan was more than$260 million, mostly used for building warehouses and logistics centers. And with that continued investment comes a degree of optimism about Kupang's prospects in Taiwan that they obviously didn't have in Japan. According to Bomb Kim in Q4 of 2023, the initial adoption of RocketWild memberships has actually been considerably faster in Taiwan than it was when it first launched in South Korea. In part, that's because Kupang has built a reputation for itself that carries over, but it also probably helps that Kupang can leverage data and lessons learned from the past few years.

41:03Baum Kim adds, quote, while Korean products are just part of the assortment that we offer to customers in Taiwan, we're enabling tens of thousands of Korean companies to get their products to Taiwanese customers. So I have mixed feelings about the plans to grow internationally. On the one hand, I can see why management thinks it's necessary and that there's some positive momentum in Taiwan. And on the other hand, I wouldn't be surprised if it proves to be a really wasteful misallocation of capital. As I try to be as conservative as possible whenever valuing a company, I wouldn't want to put much weight on meaningful success in Taiwan for Coupang.

41:36But at the same time, that could be the difference maker in the next decade that turns Coupang into a major compounder. While Taiwan's e-commerce market is about half the size of South Korea's, success there could provide a blueprint for further expansion into Hong Kong, Singapore, or eventually back into Japan. But let's take a look at the 2024 write-up Bill Miller's son wrote to explain their fund's investment in Coupang. He says, quote, Kupang is the leading player in a large addressable market with numerous growth levers at a compelling price. The company only holds a single digit share of Korea's commerce market, which is expected to grow at a 4 % compound annual growth rate from$483 billion in 2023 to$563 billion in 2027.

42:18Active customers increased 16 % in 2023 to 21 million, while revenue per active customer rose 6 % as active customers and revenue per active customer have grown at keggers of 16 % and 18 % respectively between 2019 and 2023. Miller IV adds that, quote, international expansion is also ramping up as Coupang's revenues and customers in Taiwan more than doubled in the last two quarters of 2023, with management adding that the growth and level of adoption witnessed so far in Taiwan exceeds what was seen in Korea. Additionally, management believes it can leverage prior insights from experience in Korea to scale profits more quickly in Taiwan.

42:57Part of the thesis for Miller Value Partners 2 is that shares in Coupang have been relatively inexpensive versus other dominant e-commerce players like Amazon, eBay, Alibaba, Etsy, JD.com, Naver, and MercadoLibre, especially considering that, in their words, Coupang has a superior growth profile. The company's earnings before income, taxes, depreciation, and amortization, aka EBITDA, is expected to grow at 35 % per year between 2023 and 2026, which is double the median of its e-commerce peers. Meanwhile, in terms of valuation, its enterprise value to sales multiple is at a 40 % discount to its peer group near a level that, at least for Amazon, historically marked a bottom.

43:38Another way to put that is to say that for every dollar of sales Coupang earns, the entire value of its stock and net debt is 40 % less than the value per dollar of revenue assigned to its e-commerce peers. Compared to just Amazon at the time of recording, Coupang trades at less than half of its enterprise value to sales. And as I mentioned before, many investors see Coupang's CEO, Bomb Kim, as integral to the thesis for the company. Bill Miller IV argues that, quote, management follows a disciplined capital allocation approach, opting to invest only when they have conviction that the potential opportunities can reach meaningful scale with moat-like returns.

44:16The top priority remains investing in organic growth and market share by delivering moments of wow for customers. Kupang has a low-risk balance sheet with cash exceeding total debt by nearly$2.5 billion, which, along with ramping free cash flow, should provide ample funding for the company's future operational needs, as well as financial flexibility for opportunistic M &A. CEO Bomb Kim is a value creator and heavily aligned with shareholders owning over 10 % of the company himself. And again, that captures things pretty well. It is a bit jargony, but you know, that's just how Wall Street is. In simpler language, Miller thinks that Coupang has competitive advantages, chances to naturally expand their business, and more cash than debt, plus a CEO with a proven track record who isn't just a manager in the business, but truly an owner of it.

45:06Over the past year, other investing gurus have held the stock too, including Chris Davis, Stanley Druckenmiller, Arnold Vandenberg, Rod Barron, and even Bill Gates. Druckenmiller was actually a huge early investor in Kupang before its IPO, alongside the Japanese bank SoftBank, but he's since trimmed down the position. With a CEO from both South Korea and the US, operations in Korea and Taiwan, a listing in the US, while also being headquartered in the US and having a Japanese bank as its biggest investor, Kupang's existence is a testament to our globalized world. Yet as SoftBank has cashed in on its early investment in Coupang and sold hundreds of millions of dollars of shares of stock over the past few years, that has been a major headwind to the stock's performance, even though this isn't necessarily tied to the company's prospects.

45:51We cannot know for sure why SoftBank is selling and whether it's because they no longer believe in Coupang or if it's simply because they want to raise cash to lock in their profit and invest elsewhere. My guess is the latter, but the point is that there could be a range of reasons why large institutional investors liquidate their positions that don't necessarily mean they aren't still optimistic about a company. And yet, all that selling has weighed on the stock's price performance, at least up until 2024, creating opportunities for new long-term investors to initiate positions in the company.

46:22Let's look at the financial picture for Coupang now, though. Cash conversion is an extremely important issue for large e-commerce retailers because they're moving inventory so quickly. You can probably imagine that at scale, there could be considerable cash flow mismatches if, as an online retailer, you're paying for all of your inventory upfront from suppliers and draining your cash balance and then getting paid on credit by your customers 90 days later. So the cash conversion cycle refers to how long it takes for a company like Coupang or Amazon to convert inventory into cash. The shorter the cycle, the better.

46:56Similar to Amazon, Coupang is one of the few companies that actually have a negative cash conversion cycle, meaning they collect payment from customers before having to pay their suppliers to provide the inventory. In fact, this is a form of interest-free financing that funds their operations. It also frees up cash to be used for other purposes. Coupang and Amazon operate at such large scales that it gives them enough leverage over suppliers to force them to accept delayed payments. Physical retailers like Walmart have limited product space, so they work with a selective group of suppliers who can negotiate more favorable terms for themselves.

47:31Meanwhile, Amazon and Coupang offer essentially an unlimited range of products, making any individual product supplier much more interchangeable and thus leaving them less able to negotiate better payment terms. They don't particularly care about what product they sell or where it came from, as long as it sells. So Coupang operates with two months of leeway and its negative cash conversion cycle, where inventory is sold roughly two months quicker than when Coupang needs to repay its suppliers. This is a boon for the company's free cash flows, which are basically the profits it left over after covering operating expenses and capital expenditures.

48:05In 2023, Coupang generated $1.7 billion in free cash flow, with much of that coming from its negative working capital and cash conversion cycle. Thanks in part to all of this supplier financing and just the conservative management ethos generally, Coupang has a negative net debt. So it has considerably more cash on hand than it owes, which as a potential shareholder is something I find very reassuring. But isn't to say the company isn't investing in itself though. Coupang has spent at least$800 million per year over the last few years on CapEx, of which about 70 % is reinvested into growing the company, while 30 % goes toward what's known as maintenance CapEx, which are the ongoing costs of maintaining existing assets.

48:46So for Coupang, that might mean 70 cents is going toward building new warehouses and fulfillment centers, while 30 cents of every CapEx dollar goes toward repairing or upgrading existing facilities. There's a lot to like about Coupang, but the elephant in the room is that comparisons to Amazon fall short because Coupang does not have a cloud service business. Amazon Web Services is actually Amazon's most profitable unit and a huge part of its valuation story. Food delivery, streaming, and e-commerce are all very, very hard places to compete and earn sustainable and attractive returns. And just because a company is known as the Amazon of XYZ country doesn't mean it will do nearly as well for shareholders.

49:24Alibaba is known as the Amazon of China, and it's sort of a horror story for value investors who have been trapped by that stock. The circumstances surrounding investing in China and South Korea are very different, especially since Coupang is headquartered and listed in the US, but the point remains. Amazon is actually a more diversified business than Coupang, and that's something we shouldn't lose sight of when comparing the two. The thesis in short though, is that Coupang is a world-class e-commerce marketplace with a membership ecosystem layered on top of that business that has been extremely effective at gaining acceptance across South Korea.

49:56And it's very likely that customers will only become more active and valuable to Coupang over time. As its business in South Korea matures, expansion into the luxury goods market provides an opportunity for further growth. in addition to building from scratch its rocket wow ecosystem in Taiwan and potentially in other Asian markets too. I could honestly probably spend an hour going over just the risks here, but the big ones that come to mind are that Coupang may lose out on market share or at least potential growth to ultra low cost Chinese competitors while burning capital on expansions into new marketplaces where they have no competitive advantages.

50:30When I look at Timu and AliExpress, these are companies that are even giving Amazon a run for their money in the US. and I don't expect Coupang to have it any easier. Timu increased its monthly active users by over 60 % from 2023 into 2024 in the US, and it surpassed Amazon as the most downloaded e-commerce app in the app store. By shipping directly from Chinese manufacturers, they can offer prices that just aren't possible for Amazon or Coupang to match with the sacrifice being made in delivery time. If there's something you're not too worried about the arrival time for, you could save significantly on Timu or AliExpress.

51:05And as inflation across the world has outpaced wage increases in the past few years, the cohort of budget-conscious consumers who might be attracted to a service like Timu has definitely grown. At the same time, as South Korea's population rapidly ages, that will take a major toll on the nation's economy, which could partially explain why the company is keen to gain footing in other markets. I say this is a slow-moving but more structural headwind for coupang in South Korea. Then of course, South Korea and Taiwan are both at the top of potential geopolitical hotspot lists. So there's always that risk too.

51:37And I don't know if you've been paying attention to the recent news, but South Korea's president did try to declare martial law and people saw that as sort of a half-hearted coup attempt. So there's very real political risks that can emerge even in a country that is seemingly as stable as South Korea. And again, that is to say nothing of the North Korean neighbors it has just above it. Thus, Coupang is the type of investment that you would want to watch very closely to monitor trends and customer activity in South Korea. Whether Farfetch is working out as hoped, whether the expansion abroad is panning out or just chewing up capital, it's definitely not a company you just buy and forget about.

52:14With that, it's the type of company that two people can look at and come up with dramatically different valuations for. So I'll just give that caveat before I actually try and come up with a fair value for it. I'll also say that generally, I don't prefer to set exact stock price targets because I try to think about a range of likely outcomes, returns that generate, and then reflect on how attractive those range of outcomes and prospective returns are. I really don't try to predict an exact single outcome for any single company, especially not one like Coupang. Peter Lynch once said that the very best way to make money in the stock market is in a small growth company that has been profitable for a couple of years and simply goes on growing.

52:51Coupang is no small company, but it is likely to keep growing and growing. As an investor, though, I'm not interested in growth at all costs. If revenues keep rising, but the economic value of Coupang's operations primarily accrues to customers by way of lower prices and convenience, then that is not good for me as a shareholder. When I look at Coupang, I see a company with incredibly impressive operations that creates a ton of value for its users, but I'm not blown away by how that value has accrued to owners of the business yet. And I'm even more concerned about how competition could eat away at returns and capital, if it becomes a race to the bottom to make deliveries as fast as possible to an extent that's not profitable, especially in the new markets Kupang is expanding into.

53:31Just looking at analysts' projections, Baked in the stock's valuation already seems to be the assumption that Farfetch will be effectively integrated into Kupang's operations to an extent that rather than hurting profit margins as it did in 2024, will contribute to doubling operating profit margins in the next year or so. I have a lot of faith in Coupang's management, but that is definitely an optimistic assumption for one's base case. In my model for the stock, I assumed the company would continue with double-digit revenue growth as is projected for 2025 and 2026. Then from there, I wanted to get a feel for what earnings growth might look like in a more mature state.

54:04The company wasn't focused as much on growth. So beyond that, I reduced expected capital expenditures by about two-thirds to reflect that the only investments they'd be making are in maintaining their physical infrastructure, but not in growing it. And correspondingly, I cut down expectations for revenue growth beyond 2026 to just 2 % to 3%. This might strike you as odd since we've talked so much about Coupang's plans for international expansion, but I would have a feel for the cash flows that Coupang could generate when not trying to grow aggressively, in case it becomes clear in the coming years that international expansions just aren't feasible.

54:37With those assumptions, I don't really see a ton of meat on the bone here. depending on the multiple of free cash flow you expect the stock to trade at in a few years, I get a fair value of around$28 or$29 per share today. And in a scenario where Coupang does succeed with breaking further into the Taiwanese market, while also gaining further market share in South Korea and investing meaningfully to accomplish both, I can imagine how the company might grow at 20 % or more for the next few years. But as that ripples back down to shareholders, I get a valuation that is, again, between$28 and$29. And in a more pessimistic scenario, where Coupang invests heavily internationally and realizes less growth than I hoped from it, I get a target price per share of$20 or less.

55:18Whenever you're playing with the numbers like this and evaluation, take the results with a grain of salt. But the takeaway for me is that given how capital intensive e-commerce is and how much competition there is, it's not surprising to me how low the profit margins are. And when you also consider that meaningful future growth could be partially contingent on successfully expanding internationally, I just don't have a ton of conviction in couping compounding wealth for shareholders at market-beating rates for the next few years. For a deeper dive into the numbers, I'd take an alternative approach to valuing couping in our Intrinsic Value Newsletter, which I'd really recommend you check out.

55:50I built a whole model for couping that you can access for free in the newsletter, premised on calculating the lifetime value of Rocketwild members to shareholders. In these show notes below, if you're not signed up already, I'll provide the link to join the email list for free. So I really love the story behind Coupang, Bomb Kim and its advantages within Korea. But for me to really buy in, I need to see how things continue to progress with the expansion into Taiwan and how economical the costs of that expansion are. I also want to see progress with Farfetch in the luxury goods market as well as with advertising.

56:21If this was a stock I discovered in late 2023, before it spent the last year running up in price, I would feel much better about the margin of safety I was buying into relative to the company's potential upside. But after running ahead more than 50 % through 2024, we're definitely getting much closer to fair value. As a result, I've decided not to add the stock to our intrinsic value portfolio, largely because it falls into the too difficult pile for me. I've read all kinds of analyses talking about how the company can benefit from operating leverage and scale up its profit margins while also growing internationally.

56:53I don't doubt that. But at the same time, I can't help but think I'm not in a position to succeed here as an investor. I'm not from Korea, so I can't even use Coupang, nor do I know many people there who can tell me about how they use it and perceive Coupang. And I certainly don't have a strong grasp on the nuanced cultural differences between, say, Korea and Taiwan and how that will impact Coupang. And then when you consider all the technology involved here, the complexity of the operations and the many e-commerce competitors across Southeast Asia and East Asia becomes a lot to wrap one's head around.

57:25If you're able to do that, kudos to you. You'll probably be rewarded for having those superior insights. But for me, though, I think it's important that we all know our limits. And I can confidently say that this is well beyond my circle of competence. I did, however, learn a lot from studying Coupang, so I don't regret it at all. Reality evaluation is that most of the time, most stocks trade pretty close to their intrinsic value. I'm looking for opportunities that are understandable to me, where I have a high conviction in the upside potential relative to the downside, and where some combination of fear, pessimism, or simple short-term hiccups gives me the chance to invest at a bargain price relative to the value I'm getting.

58:02Since those are few and far between, I'm just going to have to be patient. So coupé will remain on my watch list. And over time, I'll probably get more comfortable with understanding its business and may even invest in it down the road. But for now, it doesn't make the cut. And next week, I'll again be reviewing another promising company and investment opportunity, hoping to make the first addition to the intrinsic value portfolio that I'll be building weekly on this show. Before I let you go, I want to share a line from Jeff Bezos as a little inspiration. He tells us, quote, what we need to do is always lean into the future.

58:35The world changes around you and when it changes against you, what used to be a tailwind is now a headwind. You have to lean into that and figure out what to do because complaining isn't a strategy. That's all for today, folks. See you again next week. Thank you for listening to TIP. Make sure to follow the Intrinsic Value podcast on your favorite podcast app and never miss out on our episodes. To access our show notes and courses, go to theinvestorspodcast.com. This show is for entertainment purposes only. Before making any decisions, consult a professional. This show is copyrighted by the Investors Podcast Network.

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