The Intrinsic Value Podcast - The Investor’s Podcast Network

MI295: From Numbers to Riches: Return On Equity’s Impact on Investments w/ Jason Donville and Jesse Gamble

Sep 26, 2023

Jason Donville and Jesse Gamble discuss their investing strategy based on high and sustainable ROE businesses, the future of Constellation Software, the advantages of Canadian small-caps, and why small-caps offer less competition from institutional investors.

57:30

Episode guests

Jason Donville

Jesse Gamble

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Invest in businesses with high and sustainable return on equity (ROE)

Focus on long-term investment approach, assessing return on capital and integrity of management as exit signals

Consider the impact of debt when evaluating return on equity (ROE)

Deep dives

Investing in businesses with sustainable return on equity

The podcast episode discusses the importance of investing in businesses with high and sustainable return on equity (ROE). The guests, Jason Donville and Jesse Gamble, explain that they look for compounders - stocks that can grow at a rate higher than the overall market for a long period of time. They emphasize the need for companies to have a strong competitive advantage or moat, and they focus on analyzing a company's sustainability. They also highlight the importance of holding stocks for the long term and avoiding short-term trading based on market timing or temporary positive developments.

Introduction

2min

Investing Philosophy and Approach

14min

Exit Signals for Holdings and Examples of Selling Due to Decreased Growth and ROE

2min

Enhancing Employee Financial Security and Streamlining Business Processes

3min

Staying Fully Invested in Volatile Markets

16min

Decisive Dividend: Acquiring and Paying Out

7min

Investing in Canadian Businesses After the IPO Phase

14min

Current State of Investments and Impact of Stock Price Movements

3min

Kyle Grieve chats with Jason Donville and Jesse Gamble about their investing strategy based on finding high and sustainable ROE businesses, why small-caps are inefficiently priced, the future of Constellation Software, the importance of focusing on fundamentals over share price, and much, much more!

IN THIS EPISODE, YOU’LL LEARN:

00:0 - Intro

05:26 - About their outlook for Constellation Software, a business they’ve held since it IPO’d.

25:10 - How to utilize ROE in your investment process to make high return investments.

34:48 - Why Canadian small-caps have unique advantages to the US.

52:15 - Why small-caps offer less competition from institutional investors.

52:23 - Why opportunities in small-caps are so enticing.

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.
Paul’s Small Cap Discoveries.
What Works On Wall Street by James O'Shaughnessy.
How To Make Money In Stocks by William O'Neil.

NEW TO THE SHOW?

Check out our Millennial Investing Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try Kyle’s favorite tool for picking stock winners and managing our portfolios: TIP Finance.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.