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.
QUALITY and PRICE: We own equity in high QUALITY assets purchased at sensible PRICES
Quality Framework - The four pillars in every Bowie investment:
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Leaders in Oligopolies
Our companies operate in good industries and should come out stronger by taking share from weaker players
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
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|
|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|
|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|
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A methodically built portfolio of Global Champions, Hidden Champions and Next Generation Champions growing earnings at above market rates
We typically own 20-40 investments with half of our capital concentrated in our top 10 opportunities
We seek leading companies across the world though many great companies are listed in the USA
We may own companies at various life stages, but companies with established competitive advantages are skewed larger. We like to find mid caps that become large caps and large caps that become mega caps
We evaluate our companies and performance over multi-year rolling periods. We accept the reality that markets can oscillate, but in the long run, the value of our portfolio should track the earnings growth of our companies
We invest with an ownership mentality, sticking with companies through temporary issues or particularly positive periods to allow for the effects of compounding to take hold
We target consistent double-digit earnings growth
We seek attractive operating margins, high returns on capital, low capital intensity, and low disruption risk
Structural and financially our team is materially invested alongside our client partners
A long-term approach reduces the need to realize gains, allowing for deferred taxes to compound on your behalf
Quality companies often remain undervalued because most people cannot think or invest with a decade timeframe. It takes time to make multiples of money on an investment – the compounding of earnings growth and the upside possibility of an expanding valuation multiple
Consistent Process Executed with Discipline
A diligent team develops an elevated understanding of our companies with deep, thoughtful research
Owning important companies using a diligent process provides conviction, staying power, and peace of mind
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.
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Opportunistically purchase great companies that compound at high rates for long periods of time
Dominate lesser known niches of the economy often overlooked because not well understood or seems like you "missed it"
Build a foundation of compounders at prices we believe provide attractive risk-adjusted returns
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.
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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.
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.
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.
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