Today's Panelists:
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Travis Jamison shares his journey from serial entrepreneur to full-time investing in legacy businesses, explaining that while tech is great for building, it’s risky for investing. He allocates capital into small, decades-old businesses via search funds, independent sponsors, and roll-ups, aiming for diversification, steady cash flow, and multiple expansion.
Travis views AI less as a direct investment opportunity and more as a tool for operating businesses that are resilient to technological change. AI’s rapid evolution makes predicting its exact impact nearly impossible, so investors should approach private businesses with careful bet sizing, strong due diligence, and awareness of risks.
We discuss...
- Travis Jamison transitioned from serial entrepreneur to full-time investor after several liquidity events.
- He avoids investing in tech startups due to disruption risks despite believing they’re great for building wealth.
- His capital allocation focuses on small, boring, decades-old businesses that are hard to kill and generate steady returns.
- He participates in search funds, independent sponsor deals, and roll-ups, rather than angel or venture investing.
- He targets companies in the $4–30 million enterprise value range, often in industries like HVAC, pool services, and rehab centers.
- Roll-ups allow him to buy add-on companies cheaply, combine them, and benefit from multiple expansion.
- He diversifies across industries to avoid concentration risks and aims to build a portfolio of around 30 small businesses.
- He sees the lower middle market as more attractive than larger private equity deals due to lower entry multiples.
- He views business as the most fun game to play and continues investing for identity and enjoyment, not just money.
- For AI, he invests in companies largely unaffected by it, seeing boring businesses as safer than trying to pick AI winners.
- AI should be viewed as a powerful leverage tool, allowing individuals and businesses to achieve far greater output with fewer resources.
- Blue-collar industries like HVAC, plumbing, and construction are less exposed to AI disruption in the near term, making them relatively safer sectors.
- Many companies deliberately keep their AI use quiet to avoid tipping off competitors or losing their edge.
- Because the long-term trajectory of AI is unpredictable, investors should avoid over-concentration and treat exposure as part of a balanced portfolio.
- The most effective strategy is to swing at the “easy pitches”—investments with clear fundamentals—rather than forcing deals in uncertain or hype-driven areas.
For more information, visit the show notes at https://moneytreepodcast.com/investing-in-legacy-businesses-travis-jamison-746
