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On December 14, 2015, Student commented on 3G Capital’s playbook for success :

Thanks for your comments. Btw, very interesting to know that many others are applying the ZBB approach.

I agree with both of you that the partners at 3G need to prove themselves in their most recent investments and I agree that their model may not be applied in all industries (i.e. technology). However, it is hard to deny that, by using a unique playbook, 3G has been extremely successful in terms of creating substantial value for shareholders over the years.

As a matter of fact, from the time they acquired Heinz to the point of the merger with Kraft, they were able to reduce leverage and improve EBITDA margins from 18% to 25%. In addition, affiliates of 3G’s partners are meaningful shareholders of AB-InBev since 1989. We have seen many ups and downs in the market, but the point is: they started with a single beer company in Brazil and now, after the takeover of SABMiller, they have a dominant presence world-wide with nearly 30% market share. In my point of view, that is a very successful story. Over the years, AB-InBev’s stock performance has significantly outperformed the market (220% vs. 126% since June 2009):{“range”:”max”,”allowChartStacking”:true}

In any case, I understand that past performance does not guarantee future results so I am also eager to see how these most recent investments will turn out for them. They surely have a lot of work to do now.

On December 12, 2015, Student commented on Drizly: the disruptor of the 3-tier system? :

Hi Ni, thanks for your post on Drizly. You explained very clearly how the company is able to operate in an extremely regulated market by creating a business model that explores the 3-tiered system. I was also very surprised to find out they never touch any alcoholic beverage we order or any cent of the transactions. It will be interesting to see how they will maintain a competitive advantage going forward with so many new entrants in the space.

On December 12, 2015, Student commented on GrubHub: Bringing Order to the Takeout Experience :

Great post, Curtis! I am a big fan of Seamless and agree with you that their business model creates value for both diners and restaurants. Their first-mover advantage and numerous acquisitions were key for maintaining a leadership position. I also agree with Pia that new entrants like Eat24, Amazon and Uber could seriously challenge Grubhub’s position in the future. As soon as other players gain scale and register more restaurants, the pressure will be on Grubhub to deliver. They should pay special focus on improving their prices and delivery times in order to sustain their market shares across the country.

On December 12, 2015, Student commented on The Related Companies :

Thanks Sayiddah. This post does a great job in showing how Related has been able to maintain its competitive advantage. For years, I have followed Related and have been captivated by the company’s leadership in the real estate industry. The company is at the forefront of innovation having developed and built some of the most amazing buildings globally. Having all capabilities involved in the development process certainly justifies a great part of why Related is so successful.