MI370: The Company Behind The S&P 500: Valuing S&P Global w/ Daniel Mahncke

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Education, Investing, Business

4.6 • 592 Ratings

🗓️ 23 September 2024

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

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Summary

In today’s episode, Shawn O’Malley (@Shawn_OMalley_) is joined by stock investor and founder of The All-in-One Investing Platform, Daniel Mahncke, to break down the company behind the S&P 500 index: S&P Global. You’ll learn about the five different business units at S&P Global, how the company has built up such deep moats in its credit ratings and indices businesses, how the company’s merger with IHS Markit has affected its future outlook, why the company faced allegations of enabling the Great Financial Crisis, its current valuation and intrinsic value estimate, plus so much more! Prefer to watch? Click here to watch this episode on YouTube. IN THIS EPISODE, YOU’LL LEARN 00:00 - Intro 06:30 - How S&P Global was formed and which business units are most important today 07:09 - Why S&P Global is such an important company behind the scenes in financial markets 12:43 - What credit ratings are and why they matter to companies 17:03 - How S&P Global provides data to participants throughout financial markets 35:27 - What was S&P Global’s role in the Great Financial Crisis 38:05 - Why the company is so attractive to investors 39:09 - What risks undermine S&P Global’s future returns 41:51 - Whether Shawn and Daniel think the stock offers good value today And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members. Daniel Mahncke’s All-In-One Investing Platform. Value Investors Club post breaking down S&P Global. Try valuing S&P Global for yourself with our TIP Finance tools. Andrew Ross Sorkin's book, Too Big to Fail. Check out the books mentioned in the podcast here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Kyle's favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Fiscal.AI Connect with Shawn: Twitter | LinkedIn | Email Connect with Daniel: Twitter | LinkedIn HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.7	Hey guys, Sean O'Malley here. Welcome to the millennial investing podcast. On this week's
0:07.6	episode, I'll be diving to S&P Global, the company behind the S&P 500 index. You'll soon learn
0:13.5	how the company is a whole lot more than just a stock index, but that's probably what it's best
0:17.6	known for. Joining me will be Daniel Monkett, founder of the All In One investing website, and I'm really
0:23.2	excited to have him help with S&P Global.
0:26.1	Most everyone has heard of S&P, but few really know what it does.
0:30.2	It's important to know that S&P is like a few different excellent companies merged into
0:34.2	one.
0:35.2	There is the indexing side of the business, which builds indexes
0:38.3	tracking different parts of financial markets like the S&P 500 index and earns revenue from
0:43.2	licensing deals that allow investment funds to make use of them. You might also know that
0:47.9	beyond indexes, S&P Global sits at the heart of global debt markets as one of the three
0:52.9	major credit rating agencies. We'll talk about the nuances of the debt markets as one of the three major credit rating agencies.
0:55.3	We'll talk about the nuances of the ratings business and why it's so important to markets,
0:59.6	but in short, the ratings business is tremendously profitable and there are considerable barriers
1:04.4	to entry from both network effects and regulation that ensure S&P will continue to reap the rewards
1:10.1	of this great business. On top of these two businesses, S&P will continue to reap the rewards of this great business.
1:11.8	On top of these two businesses, S&P is very much a technology and big data company too.
1:17.5	If you've ever worked in investment banking or know someone who has, there's a good chance
1:21.7	they used S&P's Capital IQ platform.
1:25.0	This is the type of all-in-one platform that people on Wall Street rely on to pool data
	...

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