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.
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