• Brett Schafer

Deep Dive: Brian Feroldi Discusses Zillow

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Show Notes

Brian Feroldi joins us once again to talk Zillow, an online real estate marketplace that is delving into many other businesses including iBuying. Here are the questions we asked Brian on the show:

  1. General thesis. Why do you like Zillow?

  2. Lots of different elements to this business. Can you detail some of the different segments? How do they make money?

  3. Which segment of the business do you think will generate the most cash for the business in the long-run?

  4. Thoughts on competitive positioning vs. Redfin, Opendoor, Compass, etc

  5. Management/ownership

  6. Are they cash flow positive? What kind of margins do you think Zillow can have at scale? Are they growing? What are some important metrics for investors to track? 

  7. Zillow Offers. How do you think about this segment? Do you know what the turnaround time is from buying to selling? Does Offers add any risk to the business?

  8. What segment of Zillow’s business do you think has the most room for improvement/growth potential?

  9. How big of an advantage is the core Zillow website/app? Could competitors replicate it?

  10. What could go wrong? What’s the biggest threat to the business?

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Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.

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