Author Topic: Turtle Creek investor presentation  (Read 1629 times)

Rod

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Re: Turtle Creek investor presentation
« Reply #10 on: Today at 12:03:06 PM »
Turtle Creek's strategy is reminiscent of Allan Mecham's--both of them carve out a group of superior companies from the market. In the case of Mecham, I believe it's about 100, and with Turtle Creek it's 25. Going by memory, Mecham tries to own the cheapest 10 or 15 from his universe at any given time and rotates them as valuations change, while Turtle Creek owns their whole universe, but adjusts the weightings. The Turtle Creek approach is essentially the same as Mecham's, but less bold.

I think the concept of identifying a universe of superior companies, following them long term, and getting to know them intimately is a great strategy. For individual investors it would be enough to find 10 or less and then just own the cheapest 4 or 5. And as a small investor, you could dredge up your own Top 10 from amongst the smaller and illiquid companies so you are not dealing with the well-followed, large cap compounders like Costco, for example.


LC

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Re: Turtle Creek investor presentation
« Reply #11 on: Today at 12:20:57 PM »
I think the concept of identifying a universe of superior companies, following them long term, and getting to know them intimately is a great strategy. For individual investors it would be enough to find 10 or less and then just own the cheapest 4 or 5. And as a small investor, you could dredge up your own Top 10 from amongst the smaller and illiquid companies so you are not dealing with the well-followed, large cap compounders like Costco, for example.

Hell, you could function as a hedge fund in the original sense of the term and buy the market with a % of your portfolio; then integrate your top 5/10 superior companies and trade around their relative values. At the very least it would appear to be a moderating factor to smooth out market gyrations, at best it would be a cause for out-performance.

Quote
Turtle Creek's strategy is reminiscent of Allan Mecham's--both of them carve out a group of superior companies from the market. In the case of Mecham, I believe it's about 100, and with Turtle Creek it's 25. Going by memory, Mecham tries to own the cheapest 10 or 15 from his universe at any given time and rotates them as valuations change, while Turtle Creek owns their whole universe, but adjusts the weightings
The other thing is that Turtle creek does limit their universe to mid-cap companies, so not the full market universe.
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