How Turtle Creek Beat the Market Since 1998 | Value Investing Masterclass w/ Andrew Brenton (TIP592)
ฝัง
- เผยแพร่เมื่อ 31 พ.ค. 2024
- Clay is joined by Andrew Brenton. Andrew Brenton is the CEO and co-founder of Turtle Creek.
Since its inception in 1998, Turtle Creek has achieved an average annual return of 20% versus just 7% for the market. $10,000 invested into their fund at inception would have grown to over $885,000 as of September 30, 2023, and had that money been invested in the market, it would have been worth just under $52,000.
IN THIS EPISODE, YOU’LL LEARN:
0:00:00 - Intro
0:00:47 - How Andrew’s experience in private markets prepared him to take on public markets.
0:05:51 - Turtle Creek’s distinguished approach to value investing.
0:14:16 - What makes for a great, unique business for Andrew to get interested in.
0:18:30 - Why Turtle Creek chose to focus on mid-caps.
0:22:11 - How Turtle Creek avoids losing money on almost every investment they make.
0:25:05 - Why overpaying is the biggest risk for Andrew.
0:32:14 - How Turtle Creek improves upon an approach of simply buying and holding great
businesses.
0:39:41 - What led Turtle Creek to set up a synthetic private equity fund.
0:41:14 - An investment case study of Automation Tooling Systems.
0:50:03 - How Andrew determined that 25-30 companies in the portfolio is the right amount.
0:55:27 - What’s next for Turtle Creek in the next 25 years.
1:04:05 - The story of Turtle Creek being the largest shareholder of Home Capital Group prior to Berkshire Hathaway taking a major stake.
1:10:10 - How continuous improvement has played a role in Turtle Creek’s success.
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Just bumped into the interview and i must say it was such a wonderful learning experience..I'm going to watch it over and over again..Here hoping to someday make it too.❤india
Amazing interview, wow this guy. He's the next level value investor. Ben Graham --> Munger/Buffett --> Turtle Creek. Like Munger/Buffett took Graham's teachings to the next level, this guy is taking Buffett to the next level.
Glad you enjoyed the interview! 🙌
I make little 1% positions of his stocks as he buys them, or the ones that trade low, currently that means I'm holding a little bit of Open Text, ATS and Manga International. Open Text seems especially cheap at the minute. I haven't made big positions of his portfolio yet but trust the lad enough to just nibble away at the stocks he's been buying every quarter, so far they've all had a little 5-10% and I sell them on and buy the next one. Whenever I start to worry about due dilligence I just watch this interview again, then go back to cloning the lad :) Actually his 13F filing deadline is today and I can't find it yet, should get a peek in the next few hours at what he's been buying since Christmas.
I've listened to it the second time now. Some great lessons in this episode, thank you Clay for bringing Andrew Benton on. Really inspiring and I'll return to no. 592 for sure.
Appreciate the support! 🙏
Thanks so much! I appreciate you being a very loyal listener of the show 🙏🏻
Thanks
Interesting rebalancing strategy. It does involve making at least 2 correct decisions (when to sell a position and then when to repurchase) and paying taxes in between. But obviously they’ve figured out a way to manage that. Thanks for the content.
The Fund has incredible performance at the very beginning. 1998 Oct - 2001 May almost uninterrupted growth and +500% while +25% for SPY or +30% Nasdaq100/QQQ.
HOW DID THEY DO THAT?
Hard to find a single stock with such a result back then. The only non-seasonal stock that comes to mind is NVIDIA yet it IPO-ed in 1999 Jan.
An outperformance continued since the pre GFC peak. +~1800% vs +60% both for SPY and QQQ who is the winner thenceforth. The broad market was beaten up to mid 2015 and they have been going pretty much hand in hand afterwards.
PS. Nothing comes close to APPLE. Yet barely nothing since the mentioned 2001 May but over +600x afterwards vs 14x for the Turtle. However today's benchmark was far away from being considered as such with its 6 bln market cap.
Wow.
Thank you for tuning in! 💯
@@WeStudyBillionaires Im now a big fan of Andrew. Thanks for the video! Keep the value investors coming!
20% CAGR for 25 years..100 bagger
First
Are you sure they got 20% annually since 1998? where is the data coming from?
It's a Toronto mutual fund. The return numbers are public. They are audited.
I took a look into their 3.5B portfolio, and the picks' performances were not even close to any compounders in Wallstreet. In fact, the top 10 picks only generated 4% cagr return in the last 5 years. Kindly explain their strategy instead of stating the number.
@@JWSpaceX Listen to the podcast, he explains it. If only you weren't so lazy!
@@JWSpaceX It's just the fact that the fund performed poorly vs. sp500 over the last 10 years
@@JWSpaceX 47:05 he explains how they generated extra % of profit by buying and selling the same stock