Thanks for sharing. I know and admire the Turtle Creek fund managers. They are refreshingly unconventional - just look at their portfolio. Certainly not momentum chasers like so many others.
Thank you for your kind words about my article. You may note that I recommend your Substack on my Substack home page. If you enjoy my writing, please feel free to reciprocate. I think that we have much in common and so readers who like your work will likely enjoy mine, and vice versa.
The part I struggle with, in relation to Turtle Creek is the statement, " We care, instead, about the free cash flow that the company will generate and ultimately pay out to shareholders." It contrasts with my view, as set out here: https://rockandturner.substack.com/p/how-dividends-destroy-shareholder-value
Thanks for sharing that other article James. Regarding Turtle Creek, I believe they prioritize capital return to shareholders, regardless of the specific method, as long as it doesn't compromise the company's core operations. While there are inherent differences between dividend policies and share buybacks, particularly in terms of shareholder expectations, Turtle Creek companies that pay dividends likely have the financial stability and confidence to maintain those payments without negatively impacting their operations. I'm curious to learn your counterarguments though, will make sure to read your piece.
You may be interested in this post, which also explores the issue of 'when to sell', albeit from a different perspective: https://rockandturner.substack.com/p/investing-subconscious-myopia
I enjoyed it very much—great article and thanks for sharing, James. Even though I'm in the long-term holding camp, I was wondering if you're familiar with Turtle Creek's approach to portfolio building. They have an interesting way of looking at this; one case example is here: https://www.turtlecreek.ca/wp-content/uploads/2020/09/TCAM-Thought-Piece-Investment-Edges-A-Case-Study-June-2013.pdf
Thanks for sharing. I know and admire the Turtle Creek fund managers. They are refreshingly unconventional - just look at their portfolio. Certainly not momentum chasers like so many others.
Thank you for your kind words about my article. You may note that I recommend your Substack on my Substack home page. If you enjoy my writing, please feel free to reciprocate. I think that we have much in common and so readers who like your work will likely enjoy mine, and vice versa.
The part I struggle with, in relation to Turtle Creek is the statement, " We care, instead, about the free cash flow that the company will generate and ultimately pay out to shareholders." It contrasts with my view, as set out here: https://rockandturner.substack.com/p/how-dividends-destroy-shareholder-value
I welcome your views
Thanks for sharing that other article James. Regarding Turtle Creek, I believe they prioritize capital return to shareholders, regardless of the specific method, as long as it doesn't compromise the company's core operations. While there are inherent differences between dividend policies and share buybacks, particularly in terms of shareholder expectations, Turtle Creek companies that pay dividends likely have the financial stability and confidence to maintain those payments without negatively impacting their operations. I'm curious to learn your counterarguments though, will make sure to read your piece.