How We Invest
Achieving Investment Excellence
Investment success hinges upon following a time-honored, proven strategy, having the team and frameworks to execute the strategy, and maintaining confidence to give that strategy the time it deserves to flourish. This is the essence of the Bowie Capital approach.
Strategy + Execution + Time = Investment Success
The Bowie “Core” Strategy
We own equity in high quality assets purchased at sensible prices.
We strive to grow capital at above average rates over full market cycles by building an enduring portfolio of high quality companies. It’s the confidence in our proprietary frameworks and probabilistic future thinking, coupled with the creativity and curiosity about the world that allows us to identify these companies driving meaningful change and ingrained as integral parts of society. We believe that companies with sustainable competitive advantages and enduring earnings growth offer the most reliable means to grow your capital.
It sounds simple but Bowie’s ability to make the complex seem simple is why we are unique.
What are the Frameworks that guide our Investing Strategy?
QUALITY and PRICE: We own equity in high QUALITY assets purchased at sensible PRICES
Quality Framework - The four pillars in every Bowie investment:
Tap a framework section to learn more.
Leaders in Oligopolies
Our companies operate in good industries and should come out stronger by taking share from weaker players
Secular Growth
Our companies should participate in a growing and advancing world, and secular tailwinds should help mitigate cyclical headwinds
Earns a Current Cashflow
Especially during times of distress, we believe that companies that make and distribute cash will be able to weather the storm
Pricing Power
Our companies are tied to global wealth creation and display some combination of relative social status and/or network effects
Price Framework – The search for a beautiful economic model that skews probabilities in our favor:
| A Bowie Target | Not Our Focus | ||
|---|---|---|---|
| By the Numbers |
Revenue Growth % | Aclyclical GDP+ | Highly Cyclical |
| Margin % | High & Expanding | Flat / Contracting | |
| Free Cash Flow | > Zero and Growing | Around Zero | |
| Capital Allocation | Share Repurchases | Leverage / Bad Deals | |
| Capital Intensity | High ROIC Human Capital | Low ROIC and Fixed Assets | |
| Price | Intrinsic & Relative | Value Traps | |
| Beyond the Numbers |
Industry Positioning | Leader in an Oligopoly | No Real Positioning |
| Duration and Growth | Enduring | Shrinking | |
| Terminal Value Confidence | Fits Our Frameworks | Questionable | |
| Pricing Power | Nominal GDP+ | < Inflation | |
Click & drag to view model
Executing the Bowie Strategy
Bowie’s timeless strategy is a combination of science and art, blended together with decades of experience and good judgement navigating financial markets.
Our investment process and frameworks provide the filter to evaluate and concentrate capital into the highest probability opportunities we find while also adapting with the world.
How do we build our Portfolio?
Hover over a pyramid section to learn more about each level.
Click on a pyramid section to learn more about each level.
Next Gen. Champions
Opportunistically purchase great companies that compound at high rates for long periods of time
Hidden Champions
Dominate lesser known niches of the economy often overlooked because not well understood or seems like you "missed it"
Global Champions
Build a foundation of compounders at prices we believe provide attractive risk-adjusted returns
Next
Gen.
Champions
Gen.
Champions
Hidden
Champions
Champions
Global Champions
What is our process?
A combination of science and art: the frameworks and processes allow us to methodically distill large amounts of information into useful insights that informs and empowers us to then think creatively. We connect dots more often and earlier that others may never see.
Hover to learn more about each step
The Benefits of Time
Our strategy is evergreen; the frameworks are timeless and the process is consistent, but the portfolio evolves as the world changes. It’s consistent but dynamic and provides the foundation of your investment portfolio.
How does Bowie build your confidence?
Our strategy, frameworks and processes provide key psychological advantages over most. Knowing you own companies that provide important products or services to society with a strong financial position and enduring earnings provides the peace of mind and the confidence to stay invested through full business cycles.
Since we believe that the value of our portfolio will track the growth in earnings of our companies, we patiently give our strategy the time it deserves, never straying from the frameworks and processes that got us here. As such, we separate ourselves from the crowd and thus compete from a completely different vantage point knowing our partners have the confidence to stay the course.
How does Bowie Capital fit into your portfolio?
Our partners are builders: they build businesses, they build universities with cutting edge research and education to enable the future, they build foundations that give back to their communities, they build lives and create memories with their family and friends, and they build legacies for generations to come.
Bowie Capital serves as the foundation of their investment portfolios and enables them to continue “building” for decades and generations to come.