TIVP109 (Video): Canadian Pacific Kansas City Limited (CP.TO): Irreplaceable Moat, Unproven Compounding w/ Kyle Grieve & Shawn O’Malley
From The Intrinsic Value Podcast - The Investor’s Podcast Network · 1:19:27
Show by The Investor's Podcast Network
In today's episode, Kyle Grieve and Shawn O’Malley discuss Canadian Pacific Kansas City, the only railroad that connects Canada, the United States, and Mexico on a single network. They trace how the company helped shape Canada, how an activist investor and a legendary railroader turned it into one of North America's best-run railroads, and why a transformational merger has made its recent results much harder to judge. Along the way, they look at the barriers to replicating a railroad, management’s compensation program, the risks facing the business, and the company's current intrinsic value. IN THIS EPISODE YOU’LL LEARN: (00:00:00) Intro (00:00:35) How a railroad helped decide the shape of Canada (00:02:53) Why railroads are among the hardest businesses to disrupt (00:11:04) How Bill Ackman and Hunter Harrison transformed Canadian Pacific (00:12:01) The scheduling idea that optimized railroad margins (00:25:48) What makes CPKC’s three-country network nearly impossible to replicate (00:41:15) Why an irreplaceable moat doesn’t guarantee great shareholder returns (00:48:46) The hidden accounting reason the merger still weighs on returns (01:03:35) How a rival mega-merger could threaten CPKC’s growth story (01:11:30) Valuation discussion (01:13:40) What CPKC is worth today, and what would change our minds (01:14:32) Whether CPKC will be added to their position in the Intrinsic Value Portfolio Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES If you are interested in a Community for investors to learn, share ideas, network, and join calls with experts: Apply for The Intrinsic Value Mastermind. If you are interested in more personal meet-ups, meeting superinvestors, and discussing investing and things that go beyond: Apply for The Mastermind: Inner Circle. Track The Intrinsic Value Portfolio. Portfolio Review Submit Tool. Canadian Pacific Kansas City’s Investor Day. Canadian Pacific Kansas City’s Investor Relations. Check out our previous Intrinsic Value breakdowns: Berkshire Hathaway, Auto1, Copart, Ferrari. Related books mentioned in the podcast. Ad-free episodes on our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses through The Intrinsic Value Newsletter. Check out The Investor’s Podcast Starter Packs. Follow our official social media accounts: X | LinkedIn | Facebook. Try our tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Fiscal.AI Superhuman References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them. Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
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