This episode is brought to you by:
Tegus. Tegus, the modern research platform for leading investors. Stretch your research budget with flexible expert calls you can trust. At a fraction of the cost of traditional expert networks, Tegus customers pay only what an expert charges – with zero markups and no confusing call credits – netting an average 70% savings. Don’t want to conduct a full hour call? Tegus offers the ability to schedule 30-minutes, an offer you won’t find anywhere else. And they don’t stop there. With white-glove custom sourcing for every project and robust compliance measures, including a dedicated 50+ analyst team that vets every call transcript, Tegus ensures your privacy and protection. As the industry innovator for qualitative insights, Tegus helps you find the right experts you need at a quality and speed that can’t be matched. For a limited time, as a listener, you can trial Tegus for free by visiting tegus.co/patrick.

Show Notes:

(00:04:27) - First question - An overview of Staley’s relationship with FedEx

(00:05:06) - How FedEx is doing as a business in general

(00:06:46) - A look at the different segments of FedEx’s business

(00:08:08) - The differences between FedEx’s express and ground services

(00:09:51) - A brief history of Fred Smith, the founder of FedEx and the opportunity he saw in the market

(00:14:03) - How eCommerce and other trends have affected FedEx over the years

(00:18:36) - FedEx’s position on whether to battle UPS for Amazon’s shipping alternative option

(00:20:25) - A look at the United States Postal Service and its role in the overall eCommerce system

(00:21:39) - The reasons behind the upside in FedEx Ground margins

(00:26:07) - A look at LTL margins when it comes to FedEx Express services

(00:28:20) - Potential opportunities for FedEx moving forward

(00:31:24) - The re-fleeting of FedEx planes and other potential areas in FedEx’s business that may require capital expenditures

(00:33:19) - The challenges FedEx faced when integrating the acquisition of TNT

(00:36:04) - Bringing together FedEx’s different businesses to get an overview of the entire organization

(00:38:34) - Wage inflation and how that will affect FedEx’s margin profile overall

(00:42:56) - The potential for FedEx to compete with Amazon more directly

(00:45:42) - FedEx’s current stock price and its potential

(00:50:29) - FedEx’s use of railroads and its expansion over the past two decades

(00:52:54) - An overview of the risks FedEx could face in the future

(00:54:19) - The lessons learned from studying FedEx