My Interview with Geoff Gannon

[EricSchleien]

In this episode I interview Geoff Gannon who is the Founder of www.gannononinvesting.com

 

I first found out about Geoff around 2005/2006ish and after all this time he's still going strong! In this episode we discuss his concentrated portfolio of just 3 stocks and we take a closer look on some companies such as a monopoly business that sells to the US Navy as well, an interest rate sensitive well run regional bank, the economics of the retail industry and supermarket industry and more!

 

Website: https://intelligentinvesting.podbean.com/e/10-concentrated-portfolios-retail-supermarkets-interest-rate-sensitive-banks-geoff-gannon/

 

iTunes: https://itunes.apple.com/us/podcast/10-concentrated-portfolios-retail-supermarkets-interest/id1205082419?i=1000384269720&mt=2

[Liberty]

Geoff was one of the first online value investing guys I followed back in the day, I'll definitely listen to this one, thanks.

[sleepydragon]

What are the 3 stocks?

[rukawa]

He says that he doesn't invest in stocks in overvalued currencies because he never hedges currency. I guess he never learned to use IB.

[rukawa]

What are the 3 stocks?

 

Really 2 stocks:

 

Frost - Texas bank

- highly interest rate sensivtive bank

- lots of deposits per bank 200million deposits per bank

- pays no interest to customers

- increased 50%...already at 3/4rds of fair value

 

BWX Technologies - 20%

- supplies nuclear reactors for subs and aircraft carriers

- monopoly/monosopy - US navy is only customer. BWX is only supplier.

- everything involving nuclear for government...any defense stuff

- very high quality business but pretty expensive right now

 

 

Japanese net net - left over from when he did net nets. Not a real position

 

He plans to by Howden

- 4% same store sales growth

- 4% growth in stores

- perfectly predictable for next 5 years only

- hasn't bought it yet for mostly stupid reasons.

 

[Guest]

anyone know how these guys are doing with their focused compounding fund?

[ValueArb]

On 4/28/2022 at 11:01 AM, stahleyp said:

anyone know how these guys are doing with their focused compounding fund?

 

I've been listening to their podcasts and they've apparently added a lot of capital over the last few years. I've never heard them discuss returns though. As curious as I am I like that they aren't pumping their services by claiming outsized returns.