Evaluating Company Performance and Family Ownership Benefits

This chapter examines a company's robust performance and consistent free cash flow growth despite market hurdles, emphasizing the benefits of family-owned businesses' long-term focus. It also addresses concerns about debt levels and introduces a sponsor dedicated to real estate investing for wealth building.

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On today’s episode, Clay Finck reviews Joel Tillinghast’s book, Big Money Thinks Small, and does analysis on two companies built around acquisitions - Brown and Brown Insurance and Constellation Software.

Joel is an incredible long-term investor as he has consistently outperformed the market and currently manages around $70 billion at Fidelity. Peter Lynch, who hired Joel at Fidelity, has described Joel as “one of the greatest, most successful stock pickers of all time.”

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

06:04 - Why some level of speculation is required in every investment.

08:07 - What speculations are acceptable in Joel Tillinghast’s conservative investment approach.

10:34 - What you need to understand about a company prior to investing.

13:02 - Why Tillinghast avoids investing in gold.

20:20 - Why investing in countries with the fastest GDP growth rate isn’t a wise investment strategy.

29:52 - Clay’s insights into two acquisition-focused companies - Brown and Brown Insurance and Constellation Software.

37:27 - Why Constellation Software may be worth further investigation for stock pickers interested in high quality businesses.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Joel Tillinghast’s book Big Money Thinks Small.
Newsletter: The Risks in Owning Chinese Equities.
Listen to Trey’s Interview with Josh Young Covering Oil, or watch the video.
Chris Mayer’s blog post on Constellation Software.
Check out Clay’s episode covering legendary British Investor Terry Smith. Watch the video here.
Don’t miss our review of Four Wide Moat Stocks for 2023. Watch the video here.
Follow Clay on Twitter.

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