Invest Like the Best with Patrick O'Shaughnessy Trish and James Higgins of Chenmark Capital - Permanent Equity - [Invest Like the Best, EP.28]
19 snips
Mar 14, 2017 AI Snips
Chapters
Transcript
Episode notes
Durability Over Near-Term Growth
- Chenmark's core diligence question is durability, not short-term growth.
- They prioritize businesses likely to exist in 15–20 years, favoring contracted or essential services.
Buying A Regional Dough Maker
- Their second acquisition was a frozen-dough manufacturer serving western Canadian grocery chains.
- The business benefits from local supply advantages and limited local competition, boosting margins.
Location Creates Hidden Moats
- 'Bait shops' show that geography can create durable, high-return niches even without scale.
- Such businesses may yield steady cash but limited reinvestment unless you regionalize them prudently.