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Summary

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The host and guest explore the importance of durable competitive advantages, effective management, and reinvestment in driving business success, along with the use of the business flywheel model and strategies for dealing with valuations and exiting investments.

Kyle Grieve chats with Rayna Lesser Hannaway about her business flywheel model to identify great businesses, a use case of the business flywheel on one of Polen Capital’s holdings, Globant, the strength of businesses with repeatable sales, the advantages of investing in small-cap stocks, how to deal with valuations in high-quality businesses, how to determine when to exit an investment based on a businesses fundamentals, and a whole lot more!

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

05:27 - A 5-step business flywheel approach to finding great businesses.

05:35 - Balancing a portfolio in the small-cap space based on growth.

12:34 - A breakdown of 3 high-quality small caps: Globant, Goosehead Insurance, and Clearwater Analytics.

16:11 - Popular misconceptions of diversification in small-caps.

29:19 - Why high-quality small caps often are undervalued by the market.

35:32 - Why using 5-year models for growth and valuation projections is so effective.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Read Rayna’s perspectives here.
Check out all the books mentioned and discussed in our podcasts here.

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