TIVP018: Mercedes-Benz (MBG): Can Benz Reinvent the Car? w/ Daniel Mahncke & Shawn O’Malley

Daniel Mahncke and Shawn O’Malley break down Mercedes-Benz (ticker: MBG), one of the world’s most iconic automakers known for luxury, engineering, and performance. From the invention of the automobile to perfecting the engineering craft, Mercedes has shaped the way the world moves — and it wants to continue to do so, now with a stronger focus on EVs and in-car technology.

In this episode, you’ll learn how Mercedes grew out of the industrial revolution and invented the modern car, how its legacy and brand power influence the company’s strategy today, how it's navigating the shift to electrification and digital software, whether Chinese EV competition is an existential threat, how Mercedes plans to monetize its own operating system, and whether the stock’s high dividend yield and low valuation make it a hidden gem — plus plenty more along the way.

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IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

11:40 - Mercedes’ origin story and how it built the first automobile

18:21 - How Mercedes dominated motorsports

24:53 - How Mercedes makes money and what business segments they have

31:22 - Why Mercedes’ EQ lineup has failed

32:40 - What Mercedes has changed for the new EVs

37:06 - How the industry and competitive landscape have changed

43:31 - What role China plays and how Mercedes is performing in China

58:38 - Whether Mercedes is attractively valued at its current beaten-down levels

59:35 - How Mercedes performed recently and what KPIs matter most

1:01:02 - Whether Shawn & Daniel add MBG to The Intrinsic Value Portfolio

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Get smarter about valuing businesses in just a few minutes each week through our newsletter, ⁠The Intrinsic Value Newsletter⁠.

Mercedes’ latest Annual Report.

CEO Ola Källenius 2022 interview on the Decoder Podcast.

Value Investor’s Club Pitch on Mercedes.

Check out our previous Intrinsic Value breakdowns: ⁠Nintendo⁠, ⁠Airbnb⁠, ⁠AutoZone⁠, ⁠Alphabet⁠, ⁠Ulta⁠, ⁠John Deere⁠, and ⁠Madison Square Garden Sports⁠.

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