Thread by @borrowed_ideas

1/ Notes from @humankarp and @RohanAOza episode at @InvestLikeBest

This one was primarily focused on brands. And the word "Apple" was mentioned 14 times.

Here are my notes.

2/ "...a brand really means to me that if you turn off your marketing engine and you're not splattering the consumer with reminders of buy my product, buy my product, buy my product. Do they remember you? Does it last, Does it last in different cycles?"

3/ Two major weaknesses among brands:

1. Weak-ish teams
2. Underwhelming gross margins.

Your gross margins need to be north of 50%.

4/ Consumers today care about authenticity. I think to a large extent, that has always been true. $LULU founder Chip Wilson was ahead of the curve in understanding this.

I elaborated on this in my recent deep dive on $LULU.

mbi-deepdives.com/lulu/

5/ "I like to have celebrities in general, not always the case, to help turbocharge a brand versus save a brand or carry a brand, there's a big difference."

6/ Loved how Jason explained consumers absolutely love when they come across "epic shit", much of which is not quantifiable. But you know it when you see/experience it.

7/ $DEO paid outrageous multiple for Casamigos, but given the massive margins, it may still make sense.

Not all revenues are, of course, created equal.

Classic @bgurley post on this topic: abovethecrowd.com/2011/05/24/all…

8/ How scalable are these "authentic" brands?

$PTON enters the chat...

There is certainly precedence, but scaling authentic, niche brands remains tricky.

Also, sounds like $KO, $PEP might have their work cut out in the future.

End/ Episode: investorfieldguide.com/jason-karp-and…

Transcript: investorfieldguide.com/wp-content/upl…

All my twitter threads: mbi-deepdives.com/twitter-thread…