Q3 2024 - Seeking Winners Quarterly Letter
October 3, 2024
Table of contents
Dear Fellow Investors
Seeking Winners Fund Commentary
Our New Holdings
Suggested Reading
Legal & Disclaimer
Dear Fellow Investors
Hey there, Seeking Winners readers! I'm currently on a thrilling adventure through Japan. Due to my travels, there might be a brief delay in my response time. I'll get back to you as soon as I can!
To keep my investment strategy consistent, I'll continue to adhere to the following four key principles:
Unwavering Focus on Cash Flow: I prioritize companies with a business model I understand and a proven ability to consistently generate high levels of free cash flow. This robust cash generation serves as the lifeblood of future growth and investment opportunities.
Identifying Capital Allocation Masters: Beyond simply generating cash, I seek companies with management teams who excel at allocating that capital effectively. This expertise in making strategic investments fuels long-term shareholder value creation.
Investing Alongside Outstanding Owners: I believe in the power of ownership mentality. I gravitate towards companies led by individuals who are themselves invested in the company's long-term success. This alignment of interests fosters a strong commitment to sustainable growth and value creation.
A Price Conscious Mentality: The starting price you pay does matter. I use a reasonable estimate of future cash flows to arrive at what I consider an acceptable price to pay for an exceptional business.
A key takeaway this quarter is the importance of your investment network. My recent presentation at the TIP Mastermind Community, a group of experienced value investors, highlighted the value of connecting with like-minded individuals.
A chance encounter with a former Constellation Software portfolio manager during the Q&A session sparked two conversations with other professional investors, leading to two promising new ideas that I'll explore further.
By nurturing your network, you can gain invaluable insights and potentially discover hidden gems in the investment world. I'm incredibly grateful to the individuals who have generously shared their knowledge with me, even though they didn't have to. I strive to reciprocate by sharing my insights through my writing and conversations with other investors, and I hope you'll find value in my contributions.
I want to express my heartfelt appreciation to everyone who has read and shared my work with their networks. Thanks to your support, we've surpassed 1,000 followers and reached approximately 800 subscribers, doubling our numbers from the previous quarter. This project remains a valuable tool for tracking my investment performance and sharing my thoughts, and your engagement has been a tremendous source of motivation.