On today’s episode, Kyle Grieve chats with James and Abigail Zimmerman about the strength of growing and sustainable cash flowing businesses; the importance of strong balance sheets; how they navigate their circle of competence, and the steps they take to expand it; why simplicity is so important in an age of complexity, how they use cash as a boost, and not a drag on returns, and much more.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

02:28 - How communities—public and private—can spark better investment ideas.

07:06 - Why free cash flow yield is their north star metric.

10:09 - How to tell if value drivers are simple or deceptively complex.

14:00 - Why staying inside your circle of competence protects your downside.

19:22 - How “Fort Knox” balance sheets help survive any market storm.

28:23 - Key signals that suggest a business can sustain high ROIC.

32:56 - What truly shows management is aligned, not just insider ownership.

43:25 - The hidden risks that make many retailers dangerous investments.

53:07 - How an equity-bond lens helps compare all asset classes.

01:06:39 - When to double down on winners.

And so much more!

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

• Join Clay and a select group of passionate value investors for a retreat in Big Sky, Montana. Learn more ⁠⁠⁠⁠here⁠⁠⁠⁠.
• Join the exclusive ⁠⁠⁠⁠TIP Mastermind Community⁠⁠⁠⁠ to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
• Read about The Magic Formula here.
• Check out Value Investors Club here.
• Check out SumZero here.
• Check out MOI Global  here.
• Follow Kyle on ⁠⁠X⁠⁠ and ⁠⁠LinkedIn⁠⁠. 
• Check out all the books mentioned and discussed in our podcast episodes ⁠⁠⁠⁠here⁠⁠⁠⁠.
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