Transcript
Introduction
Matt
Welcome back to Business Breakdowns. Today, we are covering Rolls-Royce. A fair warning to those expecting to hear about luxury automobiles, that division was split from this business in the 1970s. But as we discuss the history of Rolls-Royce on this episode, you will hear how the DNA of this company still ties together from its early 1900s origins.
Our guest is Graeme Forster from Orbis Investments. Graeme walks us through the core business of Rolls-Royce in the aerospace market, the evolving duopoly of the wide-body aircraft engine manufacturers and the ups and downs of properly capturing the economic opportunity. We've talked about other duopolies in the aerospace market HEICO, TransDigm come to mind. The performance here has been different, particularly over the long term, you've seen more ups and downs, and I really appreciated Graeme's intellectual honesty discussing Rolls, and I expect you will, too. Now on to episode.