14 episodes

Cove Street Capital Portfolio Manager, Ben Claremon, interviews public company executives to understand how successful leaders compound shareholders’ wealth over time.

Compounders: The Anatomy of a Multibagger Ben Claremon & SNN Network

    • Business
    • 5.0 • 13 Ratings

Cove Street Capital Portfolio Manager, Ben Claremon, interviews public company executives to understand how successful leaders compound shareholders’ wealth over time.

    Compounders Season 1: Highlights, Lessons and Takeaways

    Compounders Season 1: Highlights, Lessons and Takeaways

    During Season 1 of Compounders, we interviewed 12 public company executives from a variety of industries. The companies profiled ranged from two Fortune 500 insurance companies to a sub-$500 million market cap supplier to the medical device industry. In this episode, we discuss some of the key lessons and learnings from Season 1 by selecting our favorite vignettes from each episode. We also give a sneak preview of what is lining up to be an even better Season 2 of Compounders.

    This episode of Compounders: The Anatomy of a Multibagger is sponsored by Tegus, an innovative and disruptive company that is changing the way professional investors work. For more information, please visit: https://www.tegus.co/ 

    To get all the latest updates about the podcast, see who we’ll have on next, as well as watch the video version of the pod, please follow us on twitter at @BenClaremon and subscribe to the SNN Network YouTube Channel at www.youtube.com/snnwire.

    For more information about Cove Street Capital, please visit: https://covestreetcapital.com/

    iTunes: https://apple.co/3xlUvPY

    Spotify: https://spoti.fi/3jxkxLl

    Each new episode will be available every Tuesday morning on Apple, Spotify and all podcast streaming platforms.

    All opinions expressed by your hosts and the podcast guests are solely their own opinions and do not reflect the opinion of Cove Street Capital or any affiliates. This podcast is for informational purposes only, it is not investment advice, and should not be relied upon for any investment decisions. We are not recommending the purchase or sale of any securities. The hosts and guests may be beneficial owners of the securities discussed. You should not assume that the securities discussed are or will be profitable.

    • 47 min
    Putting the Customer First for 25 Years with Jeff Bailly, Chairman and CEO of UFP Technologies, Inc. (NASDAQ: UFPT)

    Putting the Customer First for 25 Years with Jeff Bailly, Chairman and CEO of UFP Technologies, Inc. (NASDAQ: UFPT)

    My guest on the show today is Jeff Bailly, the Chairman and CEO of UFP Technologies. UFP is a 480 million dollar market cap company that specializes in designing foams, films, and plastics materials for the medical, automotive, consumer, and aerospace markets in the United States. Jeff joined the company in 1988 and became CEO in 1995.

    Jeff has been instrumental in helping turn UFP into the company it is today. After years of somewhat limited growth, UFP made its largest acquisition ever in 2018—of a company called Dielectrics--and that deal has transformed the company’s margin profile and growth trajectory. And the big changes that have occurred since the deal have not gone unnoticed by the stock market. Accordingly, I thought it would be really instructive to hear from Jeff about the process that led to UFP’s recent success.

    In this enlightening discussion, we will cover:

    - The genesis of the Dieletrics deal and the strategy surrounding moving into medical end markets

    - Jeff’s thoughts on the key elements that have allowed the stock to appreciate to a level 20 times its value when Jeff became CEO

    - The benefit of being patient and having a willingness to suffer as CEO

    - Areas in which UFP still has a long runway to get better

    This episode of Compounders: The Anatomy of a Multibagger is sponsored by Tegus, an innovative and disruptive company that is changing the way professional investors work. For more information, please visit: https://www.tegus.co/ 

    To get all the latest updates about the podcast, see who we’ll have on next, as well as watch the video version of the pod, please follow us on twitter at @BenClaremon and subscribe to the SNN Network YouTube Channel at www.youtube.com/snnwire.

    For more information about Cove Street Capital, please visit: https://covestreetcapital.com/

    iTunes: https://apple.co/3xlUvPY

    Spotify: https://spoti.fi/3jxkxLl

    Each new episode will be available every Tuesday morning on Apple, Spotify and all podcast streaming platforms.

    All opinions expressed by your hosts and the podcast guests are solely their own opinions and do not reflect the opinion of Cove Street Capital or any affiliates. This podcast is for informational purposes only, it is not investment advice, and should not be relied upon for any investment decisions. We are not recommending the purchase or sale of any securities. The hosts and guests may be beneficial owners of the securities discussed. You should not assume that the securities discussed are or will be profitable.

    • 1 hr 4 min
    Adapting to an Ever-Changing Media Landscape with Adam Symson, CEO of The E.W. Scripps Company (NASDAQ: SSP)

    Adapting to an Ever-Changing Media Landscape with Adam Symson, CEO of The E.W. Scripps Company (NASDAQ: SSP)

    My guest on the show today is Adam Symson, the CEO of E.W. Scripps. Scripps is a 1.45 billion dollar market cap company that owns and operates local and national television stations. The company was founded in 1878 and over the years has operated within a number of different media businesses. The company spun off its cable TV business, Scripps Networks Interactive, in 2008 and then exited the newspaper business in 2015. These transactions served to focus the company more on its local TV business.

    However, since becoming CEO in 2017, Adam has led an aggressive acquisition campaign that has created a large and differentiated National Media segment whose stations mainly operate over-the-air. The Scripps management team anticipated that cable TV subscribers would continue to cut the cord and through these acquisitions has positioned the company to benefit as more people choose to watch TV via an antenna.

    Given all of the M&A activity and the dynamic nature of the pay-TV environment, I was excited to talk to Adam about:

    - How competition from digital ad platforms like Facebook are impacting local TV advertising;

    - The value of having a background in investigative journalism;

    - The rationale for the pace of acquisitions that have occurred during his tenure;

    - What it is like to work for a 100+ year old, family-controlled company; and

    - How Scripps develops win-win relationships with its various stakeholders

    This episode of Compounders: The Anatomy of a Multibagger is sponsored by Tegus, an innovative and disruptive company that is changing the way professional investors work. For more information, please visit: https://www.tegus.co/ 

    Time stamps:

    - 1:18 Introduction

    - 2:54 The rise of social media advertising and its effects on paid TV media

    - 5:20 The state of the local broadcast TV industry in 2021

    - 7:10 Building a resilient culture in a volatile industry

    - 9:39 The company ethos that comes from developing a $15 billion asset

    - 11:29 Suffering short-term pain for a long-term gain in the podcast space

    - 15:29 Capital allocation strategy in the media industry

    - 18:55 How Scripps employs value investing as a media company

    - 22:28 The logic behind acquiring the Katz network

    - 26:13 Taking a big M&A swing during a global pandemic

    - 33:15 Investing with Berkshire Hathaway as a partner

    - 35:45 Creating win-win partnerships with various industry constituents

    - 38:48 Navigating the unbundling movement as a media company

    - 44:13 Balancing OTA and cable viewing within the same company

    - 47:34 Investor concerns regarding the traditional media industry

    - 49:49 The sports rights battlefield and the future of sports on broadcast TV

    - 53:54 Why regulation in media needs to evolve

    - 57:38 From investigative journalist to public company CEO

    - 60:09 Assessing employee fit in a competitive job market

    - 61:22 How Scripps wins over the next 5 years

    - 62:51 Mistakes made over the first 4 years as CEO

    - 64:34 ATSC 3.0 and the technological evolution of broadcast TV

    - 66:38 Preparing for the future of broadcast TV

    - 67:11 The most misunderstood aspects of Scripps

    To get all the latest updates about the podcast, see who we’ll have on next, as well as watch the video version of the pod, please follow us on twitter at @BenClaremon and subscribe to the SNN Network YouTube Channel at www.youtube.com/snnwire.

    For more information about Cove Street Capital, please visit: https://covestreetcapital.com/

    iTunes: https://apple.co/3xlUvPY

    Spotify: https://spoti.fi/3jxkxLl

    Each new episode will be available every Tuesday morning on Apple, Spotify and all podcast streaming platforms.

    All opinions expressed by your hosts and the podcast guests are solely their own opinions and do not reflect the opinion of Cove Street Capital or any affiliates. This podcast is for informational purposes only, it is not investment advice, and should not be relied upon for any investment decisions. We are not recommending the purchase or

    • 1 hr 9 min
    Leading the Future of Waste Recycling with Brian Recatto, CEO of Heritage-Crystal Clean, Inc. (NASDAQ: HCCI)

    Leading the Future of Waste Recycling with Brian Recatto, CEO of Heritage-Crystal Clean, Inc. (NASDAQ: HCCI)

    My guest on the show today is Brian Recatto. Brian is the CEO of Heritage-Crystal Clean, a 670 million dollar market cap company that provides cleaning and waste removal services to customers in the US. HCCI is one of the key competitors to Clean Harbors, a company whose CEO we also interviewed on this show. Specifically, Heritage operates in 2 segments: an Environmental Service division that offers parts cleaning and containerized waste management services; and an Oil Business segment that collects, re-refines and then re-sells used motor oil.

    Brian took over the CEO role in 2017 and, aside from a brief COVID-related speed bump in 2020, he has overseen consistently improving results and a higher stock price. COVID presented—and continues to present—a number of challenges for Heritage but the company’s strong balance sheet and consistent Environmental Services businesses have allowed it to weather the storm. With that as a backdrop, Brian and I had a great discussion about:

    - How the company has navigated the challenging customer disruptions over the last 18 months;

    - The ups and downs associated with owning and operating an oil re-refinery;

    - The future of hazardous waste regulation and why HCCI is one of the good guys when it comes to environmental matters;

    - The benefits of operating dense route networks and how Heritage defends its market position; and

    - How the company approaches M&A and the prospect of adding a third leg to the company’s stool

    This episode of Compounders: The Anatomy of a Multibagger is sponsored by Tegus, an innovative and disruptive company that is changing the way professional investors work. For more information, please visit: https://www.tegus.co/ 

    Time stamps: 

    - 1:18 Introduction

    - 3:00 Navigating COVID-19 as a waste services company

    - 8:52 Why Heritage highlights individual employees on its investor relations website

    - 10:45 Creating lines of communication between senior management and field employees

    - 11:56 How the rise of electric vehicles will impact HCCI

    - 16:19 Evolving a waste services business as customers become more ESG-focused

    - 18:13 How to tell what is a great ESG story

    - 21:37 Growing an underappreciated parts washing business

    - 23:34 Approaching win-win relationships with regulators

    - 27:25 The logic behind creating a more vertically integrated business model

    - 31:27 IMO 2020 and its significant impacts on Heritage

    - 34:10 Balancing competition in new and foothold markets

    - 36:57 The route density network effect

    - 38:43 Additional monetization opportunities at Heritage

    - 40:39 Helping frontline employees become effective salespeople

    - 43:06 The challenges of hiring and retaining people within a tight labor market

    - 45:50 Assessing the potential of automation in a services business

    - 47:06 Managing the volatility of the re-refinery business

    - 51:35 Setting fair goals for employees who work in volatile business lines

    - 52:56 Family influence at Heritage: appealing or concerning?

    - 55:59 Balancing short-term pain for long-term gain

    - 57:39 Looking back at that last 4 years as CEO of Heritage

    - 58:50 Bolt-on and tuck-in acquisition opportunities

    - 1:01:17 Filling in the West Coast coverage gaps at Heritage

    - 1:03:18 The benefits of scale in the waste services industry

    - 1:05:17 The biggest changes experienced over the last 15 years

    - 1:06:45 The most misunderstood aspects of Heritage-Crystal Clean

    To get all the latest updates about the podcast, see who we’ll have on next, as well as watch the video version of the pod, please follow us on twitter at @BenClaremon and subscribe to the SNN Network YouTube Channel at www.youtube.com/snnwire.

    For more information about Cove Street Capital, please visit: https://covestreetcapital.com/

    iTunes: https://apple.co/3xlUvPY

    Spotify: https://spoti.fi/3jxkxLl

    Each new episode will be available every Tuesday morning on Apple, Spotify and all podcast streaming platforms.

    All opinions expressed

    • 1 hr 12 min
    The Next 50 Years in Western Florida with Jorge Gonzalez, CEO of The St. Joe Company (NYSE: JOE)

    The Next 50 Years in Western Florida with Jorge Gonzalez, CEO of The St. Joe Company (NYSE: JOE)

    My guest on the show today is Jorge Gonzalez, the CEO of The St. Joe Company. St. Joe is a 2.53 billion dollar market cap company whose main asset is a huge landholding in Northwest Florida. A lot of investors may remember that the company has been the subject of a number of short reports over the last decade but since Jorge became CEO in 2015, St Joe has consistently grown its revenue and EBITDA—and has diversified its revenue base. Also, after a period of time in which the stock was unable to break out, over the last year it has risen to levels that had not been seen since the mid-2000s.

    Given the company’s recent success, I was excited to talk to Jorge about his vision of the future of the company and what people may not be appreciating its asset base. Specifically, we discussed:

    - What it means to operate as an owner-oriented company;

    - The demographic trends that are fueling growth in Northwest Florida;

    - What the shorts have gotten wrong over the years;

    - How the company approaches the risk of hurricanes in the region; and

    - What Jorge has learned from the company’s Chairman, Bruce Berkowitz of Fairholme Capital

    This episode of Compounders: The Anatomy of a Multibagger is sponsored by Tegus, an innovative and disruptive company that is changing the way professional investors work. For more information, please visit: https://www.tegus.co/

    Timestamps:

    - 1:18 Introduction

    - 2:36 Being named the next CEO of St. Joe

    - 3:19 Shifting St. Joe’s strategy, culture, and process of execution

    - 4:08 Adjusting corporate strategy to expand the total market size

    - 5:18 St. Joe’s vast land holdings and unique moat

    - 6:38 Florida’s demographic shifts and how that might affect St. Joe

    - 8:18 How COVID has affected the trends driving St. Joe’s business

    - 9:52 Handling cyclicality at a macro and geographic level

    - 11:46 Building a recurring revenue stream in a traditionally cyclical business

    - 15:28 Further enhancing an already improving business model

    - 18:05 Balancing an expansion beyond Florida with internal investment opportunities

    - 19:10 Choosing between internal development, partnerships and the sale of land assets

    - 20:58 The synergies that exist between residential, commercial, and other infrastructure

    - 24:04 Ensuring expertise exists within a small core team

    - 25:45 What does a good partner look like for St. Joe?

    - 27:36 What does St. Joe mean by “owner-oriented?”

    - 29:19 Why St. Joe invests so heavily in growth over buying back shares

    - 30:52 Lessons learned from Bruce Berkowitz

    - 31:51 How decisions get made at St. Joe

    - 34:40 How to decide which people should be on the bus

    - 37:17 What factors did David Einhorn get right in his 2015 short analysis?

    - 38:42 St. Joe’s remaining developable acreage

    - 40:14 How St. Joe benefits from a 50-year master development plan

    - 41:58 What attractions are missing from St. Joe’s core counties

    - 42:58 Building win-win relationships with government stakeholders within the community

    - 45:27 How St. Joe avoids being seen as “too powerful” within the community

    - 46:37 Building storm resiliency in an area directly affected by environmental challenges

    - 49:49 The benefits of building modern infrastructure from scratch

    - 50:57 How modern community design has improved over the years

    - 52:35 Futureproofing a home or community as a real estate developer

    - 55:14 How an investor should approach St. Joe

    - 58:31 St. Joe’s key performance indicators and measures of success

    - 59:47 Why St. Joe is still a “cheap” investment

    - 62:07 Looking at book value per share as an assessment of St. Joe’s progress

    - 62:50 Instilling a long-term mentality within a corporate culture

    - 64:14 Why mistakes are sometimes more valuable than are successes

    - 65:42 The most misunderstood aspect of St. Joe 

    To get all the latest updates about the podcast, see who we’ll have on next, as well as watch the video version of the pod, please follow us on

    • 1 hr 9 min
    Creating the Fastest Global Satellite Broadband Network with Mark Dankberg, Co-Founder and Executive Chairman of Viasat, Inc. (NASDAQ: VSAT)

    Creating the Fastest Global Satellite Broadband Network with Mark Dankberg, Co-Founder and Executive Chairman of Viasat, Inc. (NASDAQ: VSAT)

    My guest on the show today is Mark Dankberg, the co-founder and Executive Chairman of Viasat. Viasat is a 3.8 billion dollar market cap company that provides broadband and communication products and services worldwide. Viasat started off a defense-oriented company but has since layered on consumer and business-facing offerings by developing the world’s leading high throughput geostationary satellites.

    Over the next 2 years, Viasat will be launching 3 new satellites that will give the company the ability to offer global coverage to its military and in-flight WIFI customers. Additionally, Viasat is rolling out community WIFI initiatives to help people in emerging and frontier markets connect to the internet for the first time. All of this is happening while the company is facing a growing threat from low earth orbit satellite providers such as Elon Musk’s Starlink.

    Given how much is going on and the fact that Mark recently went from being the CEO to assume the Executive Chairman role, I thought it would be a perfect time to talk to him about the following topics:

    - The future of the global satellite broadband industry, including competition with Starlink;

    - What the US military needs now from Viasat and how that may evolve over time;

    - The cultural differences between the defense and commercial sides of the company;

    - How Viasat can benefit from all the space-related activity going on right now; and

    - Why this was the right time to shift his focus

    This episode of Compounders: The Anatomy of a Multibagger is sponsored by Tegus, an innovative and disruptive company that is changing the way professional investors work. For more information, please visit: https://www.tegus.co/

    Key takeaways: 

    - Deeply understanding your customers’ wants and needs is a prerequisite for success in both D2C and B2B business. But, the more intermediaries you have, the less you can really understand your end customers. Also, working with distribution partners can be difficult if the goals of the organizations are not aligned.

    - Not every industry is a winner-take-all market. Network effects and multisided marketplaces can create virtuous cycles and winner-take-all markets. In industries with supply constraints, negative network effects drive competition and ensure a diverse set of offerings.

    - Bandwidth demand is heavily affected by geography and low-earth-orbit (LEO) networks are geographically limited. Despite offering low latency, every incremental satellite will only spend a fraction of its time over the areas with the most demand, and far more over oceans and other low demand areas. This is why a hybrid network that includes geostationary and LEO satellites is likely the best solution for customers.

    - When a company is entering new markets or introducing new products, it is imperative to be a voracious reader of business history and theory, as well as to be well-grounded in the basic math that governs the industry.

    - Modern warfare requires real-time information and instant communication. Accordingly, the U.S. military will need an up-to-date network of satellites with ground stations placed in safe locations in order to process and anticipate the moves of its adversaries.

    Timestamps: 

    1:18 - Introduction

    2:56 - Diversifying into direct-to-consumer (D2C) with the 2009 WildBlue acquisition

    5:06 - The organizational restructuring required when shifting towards D2C

    7:06 - Building a D2C sales organization within a legacy B2B company

    11:51 - Making stair-step improvements with every new satellite launch

    18:50 - The process of deciding to build Viasat’s own satellite

    27:30 - Satellite broadband is not a winner-take-all market

    31:32 - LEOs, GEOs, hybrid networks and why there is no “best” satellite design

    45:27 - Building a cohesive culture with two distinctly different business segments

    51:23 - Why Viasat 3 will play a key role in the future of warfare

    58:25 - How Viasat benefits from all of the excitement arou

    • 1 hr 19 min

Customer Reviews

5.0 out of 5
13 Ratings

13 Ratings

Top Podcasts In Business

You Might Also Like