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Introduction
Topikis and Co-part fall in line with my strategy of looking for high quality compounders. After I go through my biggest takeaways, then I'll be doing some analysis on topicus.com and co-part. Topics is a spinoff of Constellation Software, which is one of my very favorite businesses. Of course, nothing in this podcast should be used as financial advice.
On today’s episode, Clay Finck does analysis on two high-quality compounders – Topicus.com and Copart. Topicus.com is a spin off of Constellation Software and is at a size similar to what CSI was back in 2010. They provide vertical market software and vertical market platforms in Europe. Copart provides online auctions and vehicle remarketing services in the United States, Canada, and many other countries.
Both companies have strong competitive advantages, strong fundamentals, high insider ownership, and managers who think and act like owners, which led Clay to researching them further during this episode.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
02:05 - Clay’s biggest takeaways from reading 100 Baggers by Chris Mayer.
07:00 - Chuck Akre’s 3 legged stool approach to compounding wealth.
09:00 - Clay’s assessment of Topicus as an individual stock.
08:00 - Topicus’s history as a business.
10:00 - Why Topicus operating in Europe is potentially a big competitive advantage.
29:00 - Why Copart is well-positioned to prevent competition from taking their market share.
47:00 - Copart’s insider ownership.
54:00 - Potential risks for Topicus and Copart.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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