We Study Billionaires - The Investor’s Podcast Network TIP608: Long-Term Compounding w/ Chris Mayer
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Feb 16, 2024 
Chris Mayer, the author of "100 Baggers" and co-founder of Woodlock House Family Capital, shares his insights on long-term compounding in investing. He highlights the impressive performance of his fund in 2023 and dives into the fascinating world of Constellation Software. Mayer discusses its decentralized business model, recent spinoffs, and the strategies behind successful acquisitions. He also elaborates on the organic growth focus of subsidiaries like Topicus and shares his thoughts on the valuation of these innovative companies.
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Spin-off Dynamics
- Constellation shareholders largely retained Topicus shares after the spin-off, but many dumped smaller Lumine shares.
- This created a buying opportunity in Lumine due to initial selling pressure.
Topicus's Potential
- Topicus replicates Constellation's model in Europe's fragmented market.
- Its size today mirrors Constellation in 2013, offering a potentially similar growth trajectory.
Topicus's Accessibility
- Chris Mayer wishes Topicus was more accessible to investors, like through shareholder letters.
- Complexity and limited communication may deter some investors, acting as a filter.
