![This is Matt Reustle and today we are breaking down the historic General Electric. Today’s GE barely resembles what was once the largest company in the world. We cover GE's business strategy, how it lost the right to be an industrial conglomerate and the role GE Capital played in its rise.<br />Our guest is Josh Aguilar, a GE Analyst at Morningstar and enthusiast on all things capital allocation. <br /> <br />If you’d like to hear more on the early years of General Electric and particularly Thomas Edison – make sure to check out our newest Colossus teammate David Senra and his podcast Founders. After my conversation, you’ll hear a preview of David's episode on Edison.<br /> <br />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/73872497/aguilar-ge-a-broken-conglomerate<br /> <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 />—--<br /> <br />This episode is brought to you by Scribe, the trusted transcription provider for business. Scribe powers call transcription, closed captioning and more with best-in-class accuracy, speed and security. It’s the chosen transcription service for all of S&P Global, including CapIQ Pro, and clients like leading market intelligence platform, Tegus. Scribe accurately transcribes messy, difficult audio including company and product names, currencies, accents and numbers. Challenge us with your hardest audio and see how we stack up! Visit scribefreetrial.com to unlock 150 minutes of free transcription today. <br /> <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 />[00:04:05] - [First question] - What GE looks like today compared to its peak<br />[00:07:42] - The reasons why GE lost so much of its power<br />[00:15:14] - How much of their success can be attributed to being propped up by leverage <br />[00:17:18] - The strategy they’re operating with today and the businesses within GE<br />[00:24:05] - Drivers in the decision to split up their business and end the conglomerate era<br />[00:25:34] - Would they have made disposals if they were operating from a strong position <br />[00:27:15] - What their capital allocation and free cash flow will look like going forward<br />[00:29:38] - GE’s centralized thought process of the past and their management style now<br />[00:31:14] - Exxon Mobil: An Aging Energy Empire<br />[00:32:23] - Driving factors behind their decision to transition towards green energy<br />[00:34:36] - How the margin profile plays out and competitive dynamics of renewables<br />[00:35:16] - Thoughts about conglomerates and what will work in the future <br />[00:37:07] - What could lead to GE’s success in the future over the coming years<br />[00:39:43] - Main takeaways from his analysis of GE<br />[00:43:52] - Clip from Founders about GE’s founder, Thomas Edison<br /><br />#businessbreakdowns #generalelectric #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 historic General Electric. Today’s GE barely resembles what was once the largest company in the world. We cover GE’s business strategy, how it lost the right to be an industrial conglomerate and the role GE Capital played in its rise.
Our guest is Josh Aguilar, a GE Analyst at Morningstar and enthusiast on all things capital allocation.
If you’d like to hear more on the early years of General Electric and particularly Thomas Edison – make sure to check out our newest Colossus teammate David Senra and his podcast Founders. After my conversation, you’ll hear a preview of David’s episode on Edison.
Show Notes
[00:00:00] – Introduction
[00:04:05] – [First question] – What GE looks like today compared to its peak
[00:07:42] – The reasons why GE lost so much of its power
[00:15:14] – How much of their success can be attributed to being propped up by leverage
[00:17:18] – The strategy they’re operating with today and the businesses within GE
[00:24:05] – Drivers in the decision to split up their business and end the conglomerate era
[00:25:34] – Would they have made disposals if they were operating from a strong position
[00:27:15] – What their capital allocation and free cash flow will look like going forward
[00:29:38] – GE’s centralized thought process of the past and their management style now
[00:31:14] – Exxon Mobil: An Aging Energy Empire
[00:32:23] – Driving factors behind their decision to transition towards green energy
[00:34:36] – How the margin profile plays out and competitive dynamics of renewables
[00:35:16] – Thoughts about conglomerates and what will work in the future
[00:37:07] – What could lead to GE’s success in the future over the coming years
[00:39:43] – Main takeaways from his analysis of GE
[00:43:52] – Clip from Founders about GE’s founder, Thomas Edison
#businessbreakdowns #generalelectric #podcast