We Study Billionaires - The Investor’s Podcast Network

TIP549: 2 High-Quality Compounders

May 5, 2023

52:36

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Podcast summary created with Snipd AI

Quick takeaways

Effective capital deployment and sustained earnings growth are vital for achieving multi-bagger status in investments.

Topicus demonstrates similarities to Constellation Software in strategic growth potential and market specialization.

Co-part's strong competitive advantages and strategic positioning contribute to its consistent revenue growth and market resilience.

Deep dives

Overview of the Episode

The podcast episode delves into the author's takeaways from Chris Mayer's book, '100 Bagger,' outlining essential criteria for companies to achieve multi-bagger status. The discussion emphasizes the significance of effective capital deployment, sustained earnings growth, and reinvestment capabilities for long-term success.

How to Buy Long-Term Compounders

01:14

Introduction

2min

How to Be a Quality Compounder

5min

Topicus.com: A Company That Has Low Risk of Permanent Loss of Capital

2min

Topicus: The Next Generation of VMS Acquisitions

6min

Topikis: A Small Company in the European Market

5min

The Advantages of Topicists in the European Market

5min

Copart: A Company With a Strong Competitive Advantage

3min

Copart: A Global Leader in the Online Auction Space

1min

Copart's Network Effects

3min

10.

Copart Versus IAA Is Not a Fair Fight

3min

11.

The Unruly Methods of Elon Musk

4min

12.

Copart's Advantage in the Industry

2min

13.

How to Maximize Returns Over a 30 Year Time Horizon

5min

14.

Copart's Q4 Earnings

3min

15.

Copart: A Stock to Watch for in the Long Run

4min

On today’s episode, Clay Finck does analysis on two high-quality compounders – Topicus.com and Copart. Topicus.com is a spin off of Constellation Software and is at a size similar to what CSI was back in 2010. They provide vertical market software and vertical market platforms in Europe. Copart provides online auctions and vehicle remarketing services in the United States, Canada, and many other countries.

Both companies have strong competitive advantages, strong fundamentals, high insider ownership, and managers who think and act like owners, which led Clay to researching them further during this episode.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

02:05 - Clay’s biggest takeaways from reading 100 Baggers by Chris Mayer.

07:00 - Chuck Akre’s 3 legged stool approach to compounding wealth.

09:00 - Clay’s assessment of Topicus as an individual stock.

08:00 - Topicus’s history as a business.

10:00 - Why Topicus operating in Europe is potentially a big competitive advantage.

29:00 - Why Copart is well-positioned to prevent competition from taking their market share.

47:00 - Copart’s insider ownership.

54:00 - Potential risks for Topicus and Copart.

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.
Luxor Capital’s Presentation.
Willis Johnson’s book Junk to Gold.
Check out our recent episode covering Mark Leonard’s Letters and Constellation Software or watch the video.
Check out Clay’s YouTube video calculating the intrinsic value of Constellation Software here.
Follow Clay on Twitter.

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We Study Billionaires - The Investor’s Podcast Network

TIP549: 2 High-Quality Compounders

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Overview of the Episode

Focus on Compounders

Investing in Topicus

Analyzing Co-part

Assessing Valuations and Risks

How to Buy Long-Term Compounders

Get the Snipd
podcast app

AI-powered
podcast player

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highlights

Save any
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We Study Billionaires - The Investor’s Podcast Network

TIP549: 2 High-Quality Compounders

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Overview of the Episode

Focus on Compounders

Investing in Topicus

Analyzing Co-part

Assessing Valuations and Risks

How to Buy Long-Term Compounders

Get the Snipdpodcast app

AI-poweredpodcast player

Discoverhighlights

Save anymoment

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