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

What Characteristics Define Our Strategy?

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Differentiated Results

A methodically built portfolio of Global Champions, Hidden Champions and Next Generation Champions growing earnings at above market rates

Focus and Concentration

We typically own 20-40 investments with half of our capital concentrated in our top 10 opportunities

Globally Sources Ideas

We seek leading companies across the world though many great companies are listed in the USA

Market Cap Agnostic

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

Low Turnover

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

Ownership Mentality

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

Growth

We target consistent double-digit earnings growth

Quality Metrics

We seek attractive operating margins, high returns on capital, low capital intensity, and low disruption risk

Alignment of Interests

Structural and financially our team is materially invested alongside our client partners

Tax Efficient

A long-term approach reduces the need to realize gains, allowing for deferred taxes to compound on your behalf

Time Advantage

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

Consistency

Consistent Process Executed with Discipline

Value-Added Research

A diligent team develops an elevated understanding of our companies with deep, thoughtful research

Psychological Advantages

Owning important companies using a diligent process provides conviction, staying power, and peace of mind

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
Hidden
Champions
Global Champions
Downside Protection Upside Capture By the Numbers Financial Analysis Protects Against Value Traps Beyond the Numbers Pricing Power Relative Social Status Network Effects Proprietary Investable Universe Decades of cumulative research and effort Preparation Meets Opportunity Bi-Weekly Project Ongoing Research Create Lasting Knowledge Patient but Decisive to act upon attractive entry points Downside Protection Upside Capture Decades of cumulative research and effort

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.