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 clay@theinvestorspodcast.com.
- 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.
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