We Study Billionaires - The Investor’s Podcast Network TIP723: The Art of Buying Growth Companies for Value Prices w/ Jim Zimmerman and Abigail Zimmerman
90 snips
May 23, 2025 
James and Abigail Zimmerman, father-daughter investors at Lowell Capital, share their insights into the world of cash-generating businesses. They emphasize the importance of free cash flow yield as a guiding metric and discuss how strong balance sheets can weather market storms. The duo explains navigating their circle of competence and the need for simplicity in investment strategies. They also highlight how to discern management alignments and the risks posed by certain retailers, providing a comprehensive view for aspiring investors.
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Keep Business Models Simple
- Quickly dismiss businesses that are not simple enough to understand and lack strong free cash flow.
- Stick to industries like services, software, and industrial IT within your circle of competence.
Simplicity Reduces Investment Risk
- True business simplicity is about resilience and few dependencies, not ease.
- Simplifying your investment thesis reduces risk by focusing on fewer things that can go wrong.
Assess Management via Calls
- Treat management calls like transcripts to assess honesty, consistency, and competence.
- Look for leaders who underpromise, overdeliver, and maintain strong customer relationships.