TIP592: Outperforming the Market since 1998 w/ Andrew Brenton

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 8 December 2023

⏱️ 87 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

On today’s episode, Clay is joined by Andrew Brenton. Andrew Brenton is the CEO and a co-founder of Turtle Creek. Since it’s inception in 1998, Turtle Creek has acheived 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: 00:00 - Intro 02:21 - How Andrew’s experience in private markets prepared him to take on public markets. 07:23 - Turtle Creek’s distinguished approach to value investing. 14:25 - What makes for a great, unique business for Andrew to get interested in. 18:06 - Why Turtle Creek chose to focus on mid-caps. 21:07 - How Turtle Creek avoids losing money on almost every investment they make. 23:37 - Why overpaying is the biggest risk for Andrew. 27:31 - How Turtle Creek improves upon an approach of simply buying and holding great businesses. 36:56 - An investment case study of Automation Tooling Systems. 44:25 - How Andrew determined that 25-30 companies in the portfolio is the right amount. 56:53 - What led Turtle Creek to set up a synthetic private equity fund. 01:02:02 - The story of Turtle Creek being the largest shareholder of Home Capital Group prior to Berkshire Hathaway taking a major stake. 01:07:20 - How continuous improvement has played a role in Turtle Creek’s success. 01:13:01 - What’s next for Turtle Creek in the next 25 years. 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. Check out Turtle Creek Asset Management. Learn more about the Berkshire Summit by clicking here or emailing Clay at [email protected]. Related Episode:TIP585: Concentrated Value Investing w/ Shree Viswanathan or watch the video. Check out all the books mentioned and discussed in our podcast episodes here. 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 AlphaSense Wise American Express Business Gold Card Shopify Toyota Ka’Chava Glengoyne Whisky Babbel Alto Linkedin Marketing Solutions Noble Gold Investments Vanta Efani Monetary Metals Salesforce Notion AI 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!

Transcript

Click on a timestamp to play from that location

0:00.0	You're listening to TIP. The listeners are in for a treat today as I'm joined by Andrew
0:06.0	Brenton. Andrew is the CEO and co-founder of Turtle Creek Asset Management. Andrew is quite a special guest on the podcast as him and his team have practically
0:15.1	mastered the art of value investing.
0:18.2	Turtle Creek has had an extraordinary investment track record.
0:21.6	Since Turtle Creek's inception in 1998, they've achieved an average annual
0:25.9	return of 20% versus just 7% for the overall market. Just to show you how extraordinary this sort of track record is, had you invested $10,000 into their
0:36.1	fund at inception, it would have grown to $880,000 as of Q3,2020,23. And had that money been invested in the market, it would have been worth just under $52,000.
0:48.0	A number of firms are able to achieve high returns over very short time periods, but very few are able to replicate this
0:55.8	level of success that Turtle Creek has had for decades.
0:59.2	During this chat, we cover how Andrew's experience in private markets prepared him to take on the public markets.
1:05.2	Turtle Creek's distinguished approach to value investing, what makes for a great unique business
1:10.3	for Andrew to get interested in? Why Turtle Creek chose to focus in the mid-cap space,
1:15.0	how Turtle Creek improves upon an approach of simply buying and holding great businesses,
1:20.0	an investment case study of automation tooling systems, the story of Turtle Creek
1:24.1	being the largest shareholder of Home Capital Group prior to Warren Buffett and
1:28.2	Berkshire Hathaway taking a major stake in the business and so much more. This was one of my favorite interviews today and I know you
1:34.7	certainly aren't going to want to miss out on this episode. With that I bring you today's
1:39.2	chat with Andrew Brinton. You are listening to The Investors Podcast, where we study the financial markets and read the books
1:50.4	that influence self-made billionaires the most. We keep you informed and prepared for the unexpected. All right, welcome to the investors podcast. I'm your host Clay Fink. Today I really couldn't
2:11.0	be more excited as I welcome Andrew Branson to the show.
2:14.7	Andrew it's such a pleasure and honor to be chatting with you today.
2:18.5	Clay really excited to be here today.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Stig Brodersen, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Stig Brodersen and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.