TIP549: 2 High-Quality Compounders

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 5 May 2023

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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. NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. 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: River Toyota Sun Life The Bitcoin Way Range Rover Sound Advisory BAM Capital Fidelity SimpleMining Briggs & Riley Public Shopify 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 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 TI-P.
0:03.0	Hey everyone, welcome to the Investors Podcast.
0:06.0	I'm your host, Clayfink.
0:08.0	I have a very exciting episode for you today,
0:11.0	because I'm going to be doing a bit of a deep dive on two companies
0:14.0	that have really caught my attention lately and deserved further research.
0:18.0	Recently, I released an episode with Chris Mayer,
0:21.0	who is the author of 100 Baggers.
0:23.0	This is one of my very favorite investing books,
0:26.0	because it touches on some of the things that make so much sense
0:29.0	and looking for great businesses that aren't always mentioned in other places.
0:34.0	So at the beginning of this episode,
0:35.0	I'll be touching on many of my biggest takeaways from Chris's book.
0:39.0	If you missed my conversation with Chris,
0:41.0	I recommend you go check that out as well.
0:43.0	That was episode 543.
0:45.0	After I go through my biggest takeaways,
0:47.0	then I'll be doing some analysis on topicus.com and co-part.
0:52.0	Topicus is a spin-off of Constellation Software,
0:54.0	which is one of my very favorite businesses.
0:57.0	Topicus recently went public and is a smaller company,
1:00.0	while co-part is already a top performer over the past 10 plus years.
	...

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