The Lowell Capital Checklist

Jim and Abigail Zimmerman are a father-daughter investment team at Lowell Capital Management, combining Jim’s two decades of disciplined value investing since founding the firm in 2003 with Abby’s research-focused approach to identifying small-cap companies with fortress balance sheets and strong free cash flow generation.

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3:00 - Abby shares her first stock purchase of American Eagle in middle school, using it as a gateway to understanding that investing isn’t abstract but about owning real businesses and thinking like an owner.

5:21 - The Zimmermans explain their core philosophy: “simplicity is the ultimate sophistication,” emphasizing that fewer things need to go right in an investment, citing Peter Lynch’s principle that if you can’t explain what a company does to an 11-year-old in a sentence or two, you probably shouldn’t own it.

8:34 - Jim discusses their strategy of buying growth companies at value prices, explaining their best investments are companies trading at 5-6x EBITDA with no debt that possess sustainable moats allowing intrinsic value to compound over time.

12:00 - Discussion of the Sprouts Farmers Market case study, demonstrating how they identify turnaround situations where strong unit economics exist but the market hasn’t recognized the potential yet.

28:00 - Abby explains their disciplined selling process, particularly the importance of position sizing and their “20% trim rule” when stocks appreciate significantly to maintain portfolio balance.

35:00 - The team reveals their contrarian approach during market dislocations, specifically discussing how they deployed capital during the COVID crash by focusing on companies with fortress balance sheets.

42:00 - Jim shares wisdom from his father Lowell: live beneath your means, invest the excess, and build things over time - the Charlie Munger approach that shaped their entire investment philosophy.

51:00 - Discussion of free cash flow as the ultimate metric, with both emphasizing that businesses generating cash can survive any environment and capitalize on opportunities when competitors stumble.

57:05 - Abby defines success as alignment - living in a way that reflects what matters most, building something meaningful with family, and treating others well while maintaining disciplined investing even when unpopular.

1:00:24 - Bogumil adds perspective on wealth preservation across generations, noting the US uniquely allows both creation and multi-generational preservation of wealth.

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.