undervalued companies

On today’s episode, Clay is joined by Andrew Brenton. Andrew Brenton is the CEO and a co-founder of Turtle Creek. Since it’s inception in 1998, Turtle Creek has acheived an average annual return of 20% versus just 7% for the market. $10,000 invested into their fund at inception would have grown to over $885,000 as of September 30, 2023, and had that money been invested in the market, it would have been worth just under $52,000. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 02:21 - How Andrew’s experience in private markets prepared him to take on public markets. 07:23 - Turtle Creek’s distinguished approach to value investing. 14:25 - What makes for a great, unique business for Andrew to get interested in. 18:06 - Why Turtle Creek chose to focus on mid-caps. 21:07 - How Turtle Creek avoids losing money on almost every investment they make. 23:37 - Why overpaying is the biggest risk for Andrew. 27:31 - How Turtle Creek improves upon an approach of simply buying and holding great businesses. 35:38 - An overview of Premium Brands Holdings. 36:56 - An investment case study of Automation Tooling Systems. 44:25 - How Andrew determined that 25-30 companies in the portfolio is the right amount. 56:53 - What led Turtle Creek to set up a synthetic private equity fund. 01:02:02 - The story of Turtle Creek being the largest shareholder of Home Capital Group prior to Berkshire Hathaway taking a major stake. 01:07:20 - How continuous improvement has played a role in Turtle Creek’s success. 01:13:01 - What’s next for Turtle Creek in the next 25 years. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Check out Turtle Creek Asset Management. Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com. Related Episode:TIP585: Concentrated Value Investing w/ Shree Viswanathan or watch the video. Check out all the books mentioned and discussed in our podcast episodes here. NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. 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: River AlphaSense Wise American Express Business Gold Card Shopify Toyota Ka’Chava Glengoyne Whisky Babbel Alto Linkedin Marketing Solutions Noble Gold Investments Vanta Efani Monetary Metals Salesforce Notion AI 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! Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode, William Green chats with Chris Bloomstran, President & Chief Investment Officer of Semper Augustus. This conversation is so rich that it’s been divided into two episodes. Here, in Part 1, Chris explains how to achieve long-term success by seeking a “dual margin of safety” that comes from owning high-quality businesses at attractive prices. He also warns about the perennial dangers of irrational exuberance, which he now sees in hot stocks like Tesla & Nvidia. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 04:45 - What Chris Bloomstran learned from his brilliant mentor, Robert Smith. 08:17 - How Chris & Robert skillfully sidestepped the dotcom bubble & crash. 10:00 - What lessons Chris drew from an early investment that fell to zero. 35:17 - Why Chris named his investment firm after a crazily overvalued tulip. 44:53 - What Sir John Templeton saw as the best antidote to financial insanity.  55:38 - How to succeed in stocks by seeking a “dual margin of safety.” 56:51 - How his definition of a quality business has evolved. 1:07:01 - Why he’s skeptical about Cathie Wood’s ARK portfolio. 1:09:02 - Why hot tech stocks like Nvidia are likely to disappoint for many years. 1:11:32 - Why he’s wary of hype & “puffery” about Tesla’s glorious future. 1:17:49 - Why he’s trimmed great but pricey holdings like Costco & Nike. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Chris Bloomstran’s firm Semper Augustus Investments Group “Extraordinary Popular Delusions & The Madness of Crowds” by Charles Mackay “The Rise & Fall of American Growth” by Robert Gordon William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book Listen to Stig Brodersen’s April 2023 interview with Chris Bloomstran, or watch the video. Follow Chris Bloomstran on X (AKA Twitter) Follow William Green on X (AKA Twitter) SPONSORS Support our free podcast by supporting our sponsors: River Toyota Linkedin Marketing Solutions Fidelity Efani Shopify NDTCO Fundrise Wise NetSuite TurboTax Vacasa NerdWallet Babbel Learn more about your ad choices. Visit megaphone.fm/adchoices

What does the death of Osama bin Laden mean for investors? What was the most surprising thing about this year's Berkshire Hathaway meeting? Will thinking like an economist really improve your marriage? We tackle those questions and talk about the business of Buffett with Lou Ann Lofton, author of Warren Buffett Invests Like a Girl: And Why You Should, Too.  Plus, Spousonomics author Jenny Anderson explains how using economics can help you improve your marriage. Learn more about your ad choices. Visit megaphone.fm/adchoices