TIP592: Outperforming the Market since 1998 w/ Andrew Brenton

2023-12-08

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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 - Intro02:21 - How Andrew’s experience in private markets prepared him to take on public markets.07:23 - Turtle Creek’s distinguished approach to value inv...

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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