Subsea 7 and a Lifetime of Value Investing With Bob Robotti (Ticker: SUBC)
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Show Notes
This week we brought on Bob Robotti from Robotti & Co. to discuss Subsea 7 and his career as a value investor. Here are some questions we asked him:
Background/career. How’d you get into the industry? What’s the genesis story for Robotti and Company? What inspired you to start it?
What does Subsea7 do? Where do they operate?
What types of energy generation are included in offshore energy? How big of an opportunity is offshore wind?
Why does this opportunity exist?
What is the Subsea Integration Alliance? Is this important for the company moving forward?
You serve on several boards. How have those experiences helped you as an investor?
How do you value Subsea stock? How tied is this business to oil prices, global energy needs, global capex, etc?
Gross margin has trended downward for the last 5 - 7 years. How/why could this change?
Does Subsea have any competitors? If so, who? If not, why not? Is this business replicable?
What do you think of the Subsea7 management team and capital allocation strategy?
Premortem: What could cause Subsea7 to be a poor investment over the next few years?
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.