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  • Brett Schafer

Does Pacifico Airports Have an Impenetrable Moat? With Ian Bezek (Ticker: PAC)

Listen On:

  1. Spotify

  2. Apple Podcasts

Show Notes

This week on the podcast we interviewed Ian Bezek about a Mexican airport called Pacifico Airports. They operate in the pacific region of Mexico. Ian is an expert on Mexican and Latin American stocks, making him a perfect guest for the show. Here are some questions we asked him:

  1. Can you explain Pacifico Airports’ business model? What do they do and how do they make money? What are their direct costs?

  2. What sort of competitive advantages does PAC have? Is it even possible to compete with them in their existing geographies?

  3. Does a Mexican airport have more exposure to leisure travel than most other airports?

  4. How do you think flexible work can help drive foot traffic to and from Mexico? Is this relevant for the thesis?

  5. What can they do besides increasing volume/traffic to increase revenue? How much operating leverage does this business have?

  6. Are there any plans to add new airports? Or just additional capacity to existing ones?

  7. How has the Tijuana-San Diego bridge benefitted CAP?

  8. What’s PAC’s relationship with the U.S. government?

  9. Thoughts on valuation and capital allocation?

  10. Pre-mortem: What would cause an investment in PAC to go poorly?

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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