Position Sizing and Cash

On today’s episode, Clay chats with Chris Mayer about long-term compounding and a few of his holdings, including Constellation Software. Chris is well-known for his book, 100 Baggers, and has inspired thousands of readers to become better investors. If you’re interested in investing in multi-baggers, then this episode is a must-listen.

Chris is the author of 100 Baggers and the co-founder and portfolio manager of Woodlock House Family Capital. 

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

03:27 - A review of how Chris’s fund performed in 2023.

06:37 - Where Chris focuses much of his attention in managing a fund.

12:39 - How Chris discovered Constellation Software.

18:02 - How the competitive landscape for Constellation Software has developed over the years.

24:58 - The potential drawbacks of Constellation Software’s decentralized business model.

28:09 - Chris’s thoughts on Constellation Software’s ~60% increase in their share price over the past year.

28:53 - How Constellation 2.0 has developed in recent years.

33:04 - Why Constellation Software has started performing spinoffs.

39:42 - Whether Constellation will continue to do more spinoffs in the future or not.

37:05 - Why Chris decided to invest in the Constellation Software spinoffs in his fund (Topicus & Lumine).

39:32 - Why Topicus is targeting higher organic growth in their subsidiaries.

55:12 - Chris’s thoughts on the valuation of Constellation Software, Topicus, and Lumine.

61:56 - How Chris would consider allocating fresh capital today in his fund.

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, Kyle, and the other community members.
• Chris Mayer’s books: 100 Baggers & How Do You Know?
• Resources mentioned: InPractise, Acquirers.com, & REQ Capital.
• Chris’s fund & blog: Woodlock House Family Capital.
• Thomas Phelps’ book: 100 to 1 in the Stock Market.
• Episode mentioned: TIP531: Mark Leonard: The Best Capital Allocator You've Never Heard Of | YouTube Video.
• Related Episode: TIP543: 100 Baggers w/ Chris Mayer | YouTube Video.
• Related Episode: TIP569: An Investor's Guide to Clear Thinking w/ Chris Mayer | YouTube Video.
• Related Episode: MI310: A Serial Acquirers Deep Dive w/ Chris Mayer | YouTube Video.
• Follow Chris on Twitter.
• Follow Clay on Twitter.
• Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com.
• Check out all the books mentioned and discussed in our podcast episodes here.

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