General Thoughts

Connor Leonard’s 2017 IMC Letter

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Long-time readers are likely familiar with Connor Leonard, but for those who don’t know him, Connor is a good friend of mine who runs the public securities portfolio at Investors Management Corporation. IMC is a holding company locatedĀ in Raleigh, North Carolina. The firm focuses on long-term ownership of outstanding companies in both the public and private markets. Connor has shared some thoughts with BHI readers in the past, including a post on Reinvestment Moats, Capital Light Compounders, as well as […]

Investment Ideas & Company Research

Returns on Capital and an Investment Idea

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A couple years back, I wrote a series on the topic of returns on capital (ROIC) and how significant its impact is on the long-term value of a business. As a long-term shareholder of a business, your ultimate investment result will be determined by the quality of that business over time. One way to measure quality is to figure out the rate of return that the company achieves on its own internal investments (as well as what that company does […]


Reinvestment Moat Follow Up: Capital Light Compounders

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This post is the second guest post by my friend Connor Leonard, in what I hope to be a somewhat regular “column” here at BHI (by regular, I mean as often as Connor decides to put the proverbial pen to paper and share his insights with us). Based on the quality of his work, he’s welcome back anytime. What follows is what I’ll call “Part Two” to his excellent postĀ on Reinvestment Moats vs. “Legacy Moats”. Here is Connor’s post: Reinvestment […]