Podcast: Compounding Made Simple with Dan Davidowitz

Podcast Highlights

Dan Davidowitz, portfolio manager of Polen's Focus Growth strategy sits down with Troy Asset Management's  Far From the Finishing Post podcast to discuss Dan’s background, the Polen Large Company Growth investment team, and the disciplined approach that has contributed to the strategy's longevity.

Listen to the full podcast

• We believe the investment guardrails implemented by Polen's Large Company Growth team allow us to narrow in on what we view to be high-quality companies that can deliver continuous earnings growth through investment in their intrinsic value. These guardrails include a sustained return on earnings of above 20%, solid balance sheets, stable or growing profit margins, and abundant free cash flow.
• Research is a fundamental part of our investment process. We strive to continuously monitor the development of our portfolio companies and the industry dynamics that could impact growth.
• Dan points to examples of "safety-like" companies that can provide stability of earnings growth and help preserve capital in down markets.

Listen to the full Far From the Finishing Post podcast here

Important Disclosures

Please note that this document is a condensed summary of the full interview conducted by Far From The Finishing Post. 

Specific securities mentioned in the podcast reflect the Focus Growth holdings as of March 31, 2024.

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This content is being provided for informational purposes only and should not be construed as a recommendation to purchase, hold or sell any particular security. Opinions and views expressed constitute the judgment of Polen Capital as of the date of this content and may involve a number of assumptions and estimates which are not guaranteed and are subject to change without notice. Although the information and any opinions or views given have been obtained from or based on sources believed to be reliable, no warranty or representation is made as to their correctness, completeness or accuracy. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice, including any forward-looking estimates or statements which are based on certain expectations and assumptions. The views and strategies described may not be suitable for all clients. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. This disclosure does not identify all the risks (direct or indirect) or other considerations which might be material when entering any financial transaction.

There is no assurance that any securities discussed herein will remain in a Polen Capital portfolio or that securities sold will not be repurchased. The securities discussed do not represent entire portfolio holdings. Actual holdings will vary depending on the size of the account, cash flows, and restrictions. It should not be assumed that any of the securities, transactions or holdings discussed will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.  A complete list of our past specific recommendations for the last year is available upon request. Past performance does not guarantee future results.

Definitions:

Free Cash Flow (FCF):  the money a company has remaining after paying operating expenses and capital expenditures.  
Instrinsic Value: a measure of what an asset is worth separate from the current market price. 
Return on Equity (ROE): the measure of a company's net income divided by its shareholders' equity. ROE is considered a gauge of a corporation's profitability and how efficient it is in generating profits.