![This is Matt Reustle and today we are breaking down the financial institution known as Charles Schwab, the financial behemoth with $8 trillion in assets under custody. We cover how Charles Schwab built a behemoth out of a newsletter, why it pivoted to an asset-heavy model, and what it shares in common with Amazon.<br /> <br /> Our guest it Holland Advisors’ Founder and Portfolio Manager, Andrew Hollingworth. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/31064864/hollingworth-charles-schwab-the-8-trillion-dollar-gorilla.<br /> <br /> -----<br /> This episode is brought to you by Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.<br /> -----<br /> This episode is brought to you by Scribe. Scribe is the trusted transcription provider for the business and investing community. Scribe is designed to accurately transcribe messy, real-world audio and is unique in that it’s optimized for the complexities of enterprise audio, such as company and product names, currencies, accents and numbers. Visit kensho.com/breakdowns to learn more and unlock your free trial.<br /> —--<br /> <br /> Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br /> Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br /> Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt<br /> <br /> Show Notes<br /> [00:00:00] - Introduction<br /> [00:03:30] - [First question] - Why Schwab isn’t well understood by the market <br /> [00:05:18] - The story of Charles Schwab and how active he is in the company <br /> [00:08:13] - The business model of Schwab itself; Holland Advisors Research<br /> [00:12:51] - Can it be compared to a franchise model; Another Flywheel<br /> [00:15:46] - What did they see in the space that convinced them to shift their business model<br /> [00:18:19] - How Schwab benefits from their customers keeping money in cash<br /> [00:20:18] - What stops competitors from copying the Schwab model<br /> [00:23:12] - Where Schwab stands out with cash on the balance sheet<br /> [00:24:17] - The reasoning behind the TD Ameritrade acquisition<br /> [00:30:38] - The Schwab customer base <br /> [00:33:28] - Convincing new customers to transfer their accounts to Schwab<br /> [00:37:14] - How their market share has changed over the years<br /> [00:38:50] - Building their balance sheet <br /> [00:46:34] - How their acquisition of TD Ameritrade helps their balance sheet<br /> [00:49:50] - Valuing a complex business like Schwab<br /> [00:56:43] - Key drivers of their earnings growth <br /> [00:58:31] - How they use their net interest margin <br /> [01:00:43] - What the market pullback this year has meant for Schwab<br /> [01:03:43] - Major lessons learned from analyzing Schwab<br /><br />#businessbreakdowns #charlesschwab #podcast](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
This is Matt Reustle and today we are breaking down the financial institution known as Charles Schwab, the financial behemoth with $8 trillion in assets under custody. We cover how Charles Schwab built a behemoth out of a newsletter, why it pivoted to an asset-heavy model, and what it shares in common with Amazon.
Our guest it Holland Advisors’ Founder and Portfolio Manager, Andrew Hollingworth.
Show Notes
[00:00:00] – Introduction
[00:03:30] – [First question] – Why Schwab isn’t well understood by the market
[00:05:18] – The story of Charles Schwab and how active he is in the company
[00:08:13] – The business model of Schwab itself; Holland Advisors Research
[00:12:51] – Can it be compared to a franchise model; Another Flywheel
[00:15:46] – What did they see in the space that convinced them to shift their business model
[00:18:19] – How Schwab benefits from their customers keeping money in cash
[00:20:18] – What stops competitors from copying the Schwab model
[00:23:12] – Where Schwab stands out with cash on the balance sheet
[00:24:17] – The reasoning behind the TD Ameritrade acquisition
[00:30:38] – The Schwab customer base
[00:33:28] – Convincing new customers to transfer their accounts to Schwab
[00:37:14] – How their market share has changed over the years
[00:38:50] – Building their balance sheet
[00:46:34] – How their acquisition of TD Ameritrade helps their balance sheet
[00:49:50] – Valuing a complex business like Schwab
[00:56:43] – Key drivers of their earnings growth
[00:58:31] – How they use their net interest margin
[01:00:43] – What the market pullback this year has meant for Schwab
[01:03:43] – Major lessons learned from analyzing Schwab
#businessbreakdowns #charlesschwab #podcast