That's how lego stop to lose money.

[00:00:00]In 2003, an internal audit found most of Lego's catalog was losing money, but one product was printing cash, the brick.

[00:00:08]Theme parks, licensed video games, hundreds of product lines, all cross-subsidized by a single interlocking brick. The cost structure was unsustainable. What happened next was surgical. The board stripped the losing lines, >> [music] >> pulled back on outside licenses, refocused entirely on the ABS brick.

[00:00:27]It sounds simple, but the execution [music] was brutal. Cut everything that didn't print cash. By 2012, that one product discipline made Lego the world's most [music] valuable toy company, worth $14.6 billion ahead of Mattel. A valuation larger than the toy industries [music] of several nations combined.

[00:00:48]That is how a near-bankrupt company from a Danish [music] village flipped a catalog audit into market dominance.

[00:00:54]Subtract until your only asset prints cash, then protect it at all costs.