![Connor Leonard - Capital Light Compounders & Reinvestment Moats - [Invest Like the Best, EP.64]](https://megaphone.imgix.net/podcasts/17af1f76-ccce-11ed-87bf-8f39e8dcc4b0/image/Invest_Like_The_Best_Podcast_Cover_1400x1400.jpg?ixlib=rails-4.3.1&max-w=3000&max-h=3000&fit=crop&auto=format,compress)
Invest Like the Best with Patrick O'Shaughnessy
Connor Leonard - Capital Light Compounders & Reinvestment Moats - [Invest Like the Best, EP.64]
Conversations with the best investors and business leaders in the world. We explore their ideas, methods, and stories to help you better invest your time and money. Hear stock market and boardroom insights you can't find anywhere else. If you're a professional investor, CEO, entrepreneur, or business strategist, this is for you. Explore all our episodes and learn more at https://www.colossus.com
Show Notes
Tap timecodes to jump
This week’s conversation is an ode to old school, fundamental public market investing. My conversation is with IMC’s Connor Leonard, who spends most waking hours thinking and reading about markets. His mandate is to invest purely as if it was his own money, with no pressure to hug a benchmark, and no pressure to do much of anything other than earn strong long-term returns.
The portfolio that results from this approach is highly concentrated and unique. Connor’s strategy is to sort companies into four categories based on their type of sustainable competitive advantage. As you’ll hear, the vast majority fall into the first category, which means they don’t have such an advantage and therefore should be largely set aside.
We spend the majority of our conversation talking about the other three categories: 1) companies with a legacy moat, 2) companies with a re-investment moat, and 3) an interesting category Connor calls “capital light compounders,” which we explore in detail.
When you step back and think about public markets, you realize how amazing it is that we can, from afar, buy an interest in so many companies around the world. A select few go on to deliver outstanding returns. This conversation highlights how hard that can be, but also how fun and ultimately rewarding. Please enjoy my talk with Connor Leonard.
For more episodes go to InvestorFieldGuide.com/podcast.
To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Books Referenced
Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor
The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
Links Referenced
Pat Dorsey Podcast Episode
David Tisch podcast
Will Thorndike Podcast episode
Show Notes
(First Question) – Trends in value investing
– Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor
– A look at Connor’s backstory and the history of IMC, parent company of Golden Corral
– Why Connor loves the public markets so much
– The concept of intrinsic value when looking at companies
– How Connor categorizes MOATS
– Pat Dorsey Podcast Episode
– Legacy MOATS
– Reinvestment MOATS
– Capital light compounder MOAT
– Why classifieds are an interesting business model
– Looking at platform businesses
– Looking at companies in the 500 million to 5 billion range and what makes it so enticing
– What is the process that gets Connor to find investment opportunities
– David Tisch podcast
– How Connor looks at industry classifications
– Connor’s strategy for running his portfolio
– The circumstances in which Conno would buy a legacy MOAT company
– Will Thorndike Podcast episode
– The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
– How do you pick managers that will beat the markets
– Second reason to buy a legacy MOAT
– Comparing the reinvestment MOAT and Capital A compounder in Connor’s portfolio
– Connor’s Mt Rushmore of Capital Allocators
– Impactful mentorships for Connor
– kindest thing anyone has done for Connor
– What in the discussion with founder of IMC got him the job
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag
This episode is not processed yet. Sign in to queue the transcript and make it useful for search and Q&A.
Sign in to queue transcript (1 credit)
Free to start
Skim the episode first,
Skim the episode first,
then decide if it is worth listening.
Sign up with Google in one click. 10 transcript credits included. No card needed.
Google sign-in · No credit card · 10 free transcript credits