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The Disadvantages of Decentralized M&A
The decentralized model is really amazing. They've got these six operating units, but a lot of the M&A is pushed down. So it's not like you have just people sitting in headquarters doing 134 deals one every third day. The database from what I've heard is over 100,000 names. But then, they will tell me that the people left are younger people who went for money.
On today’s episode, Clay sits down with Chris Mayer to discuss the lessons from his book - 100 Baggers.
Chris is the author of 100 Baggers, and the portfolio manager of Woodlock House Family Capital. Chris’s book was published in 2018, and has quickly become a favorite within the investing community. The book very clearly explains the ingredients needed for a stock to compound and grow to 100 Bagger status, which we discuss during this episode.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
04:16 - The primary characteristics of companies that reached 100 Bagger status.
07:08 - How Chris views valuation when purchasing high-quality companies.
09:51 - How Chris assesses the durability of a moat.
18:15 - Why stocks are one of the best long-term protections against calamity and chaos.
44:27 - Why Chris prefers to own companies with management teams that own substantial portions of the company’s stock.
35:13 - Why Chris chose to concentrate his fund into only 10 holdings.
37:04 - Chris’s assessment of Constellation Software and why it’s one of his favorite holdings.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
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