On today’s episode, Kyle Grieve chats with James and Abigail Zimmerman about the strength of growing and sustainable cash flowing businesses; the importance of strong balance sheets; how they navigate their circle of competence, and the steps they take to expand it; why simplicity is so important in an age of complexity, how they use cash as a boost, and not a drag on returns, and much more.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:28 - How communities—public and private—can spark better investment ideas.
07:06 - Why free cash flow yield is their north star metric.
10:09 - How to tell if value drivers are simple or deceptively complex.
14:00 - Why staying inside your circle of competence protects your downside.
19:22 - How “Fort Knox” balance sheets help survive any market storm.
28:23 - Key signals that suggest a business can sustain high ROIC.
32:56 - What truly shows management is aligned, not just insider ownership.
43:25 - The hidden risks that make many retailers dangerous investments.
53:07 - How an equity-bond lens helps compare all asset classes.
01:06:39 - When to double down on winners.
And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join Clay and a select group of passionate value investors for a retreat in Big Sky, Montana. Learn more here.
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Read about The Magic Formula here.
- Check out Value Investors Club here.
- Check out SumZero here.
- Check out MOI Global here.
- Follow Kyle on X and LinkedIn.
- Check out all the books mentioned and discussed in our podcast episodes here.
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