MI250: How to Find High Quality Companies w/ Braden Dennis

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Education, Investing, Business

4.6 • 592 Ratings

🗓️ 19 January 2023

⏱️ 62 minutes

🔗️ Recording | iTunes | RSS

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Summary

Rebecca Hotsko chats with Braden Dennis. In this episode, they discuss Braden’s investment process looks like for finding great stocks, his 6-question framework for finding “high-quality businesses” to invest in, how to determine if a company’s high ROIC is sustainable or not, Braden’s analysis and deep dive into Constellation Software and Shopify, why the P/E ratio is not the right multiple to value Shopify with, and what metrics are more relevant to the company, how to make sure you don’t overpay for a business that’s trading at a premium, Braden’s thoughts on Brookfield Asset Management company given its spin-off, is Brookfield Asset Management’s spin-off good for shareholder value, and so much more! Braden is the founder of Stratosphere and the co-host of The Canadian Investor Podcast. IN THIS EPISODE, YOU’LL LEARN: 00:00 - Intro 04:32 - What Braden’s investment process looks like for finding great stocks. 06:36 - His 6-question framework and checklist for finding “high-quality businesses” to invest in. 10:53 - The most important factors he looks for to identify a company has a sustainable moat. 13:23 - How to determine if a company’s high ROIC is sustainable or not. 16:55 - Braden’s analysis and deep dive into Constellation Software and Shopify. 30:30 - How to make sure you don’t overpay for a business that’s trading at a premium. 37:39 - Why the P/E ratio is not the right multiple to value Shopify with, and what metrics are more relevant to the company. 50:46 - Braden’s thoughts on Brookfield Asset Management company given its recent spin-off. 51:06 - Is Brookfield Asset Management’s spin-off good for shareholder value. 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. Check out: Stratosphere. Check out: The Canadian Investor Podcast. Related Episode: Listen to MI239: Deep Dive into Apple & Google w/ Logan Kane, or watch the video. 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. SPONSORS Support our free podcast by supporting our sponsors: Fiscal.AI Connect with Braden: Website | LinkedIn | Twitter Connect with Rebecca: Twitter | Instagram Email: Rebecca@theinvestorspodcast.com HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.6	Every good moat should have a long list of dead bodies of the companies that tried to compete with it.
0:09.7	That doesn't mean that it's going to stay there forever.
0:12.1	Let's look at the largest 20 companies by market cap in 1989.
0:18.4	Not one of them is in the top 20 by market cap today in 2022. Not even one of them.
0:25.0	And those were the 20 most powerful, widest moat, fastest growing, just behemous, companies that had
0:32.4	gravitational pulls in 1989. Not one of them is on the top 20 by market cap today.
0:41.7	On today's episode, I'm joined by Braden Dennis, who's the founder of Stratosphere, which is an
0:47.6	investment analytics and research platform, and he is also the host of the Canadian investor podcast.
0:53.8	During this episode, we discuss what Braden's investment process looks like,
0:58.3	his six-question framework for finding high-quality businesses to invest in,
1:02.7	and then we dive into some specific Canadian stocks like Constellation Software and Shopify,
1:08.6	as well as Brookfield Asset Management, which is quite an interesting
1:11.8	company right now given its recent spinoff. I really enjoyed chatting with Braden today.
1:17.0	We cover some of the biggest names in Canada, and there are so many great Canadian equities
1:21.3	that I think deserve more attention. So we get into a few of them today, along with Braden's
1:25.8	strategy, which really centers on focusing
1:28.2	on things you can control. And I think I've been caught up in the macro world lately and how we can
1:32.7	be better investors by including that into our investment process. But I think it's also good to have
1:38.0	someone on that takes a different approach to investing as well, and just remind us of those
1:42.2	core principles that really make a good investment.
1:45.2	And so with that all said, I really hope you enjoy today's episode.
	...

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