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M. Mouse
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Fascinating company, really unique technology, and thoughtful post. I worry, though, if it’s too early to call this one – Planet Labs has raised a lot of money at sky-high valuations, but this is a capital intensive business in an increasingly competitive and crowded space – including Google’s SkyBox, which is larger and better funded. They have had a number of launch failures, which for me calls their model into question, and their business model is not yet proven. I’m still in ‘wait and watch’ on this one.
In a previous job, I had the opportunity to work with Nucor’s management team on an M&A deal and was really impressed with their understanding of the market and their investment discipline. I am a big fan of this business, and I think the way Nucor has maneuvered the current steel cycle is a testament to the power and flexibility of the low-cost operating model that you explained very well. What is also really amazing is the way they are taking the EAF process, which has historically been associated with lower-quality “construction” steel, and have used a series of operational improvements to begin producing high-end automotive steel. Also worth reading (if you haven’t already) is the chapter about Nucor in Jim Collins’ “Good to Great,” which hits on a lot of the themes you have talked about and how they stand in stark contrast to the approach taken by its competitors.