TIP592: Outperforming the Market since 1998 w/ Andrew Brenton

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We Study Billionaires - The Investor’s Podcast

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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 - 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.

35:38 - An overview of Premium Brands Holdings.

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.



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