Infinite Games – Investing in Buy-and-Build Compounders with Dan Roller of Maran Capital

“What you need to do, I think, is constantly update your thesis as you go, which can allow for longer holding periods, because things do change. And at the same time, I go into investments with a multi-year horizon—but my thesis might be disproven fairly quickly” – Dan Roller

In this episode of Outliers, I’m talking with Dan Roller (@Dan_Roller) about the power of buy-and-build companies, investing in special situations, interesting value-oriented opportunities in SPACs, and how becoming a better investor is similar to training for an Ironman competition.

Dan Roller is Founder and Chief Investment Officer of Maran Capital Management, a boutique, value-driven investment manager with a carefully crafted portfolio of companies, including Clarus, Scott’s Liquid Gold, Turning Point Brands, and Pure Cycle. Prior to starting his own fund, Dan honed his investment philosophy and process for over a decade working in research analyst and portfolio management roles at well-regarded hedge funds in New York City, including Credit Suisse First Boston and Impala Asset Management.

Chapters in this interview:

00:01:45 – MOI Global
00:03:36 – Dan’s background and start in the investment world
00:11:20 – The formation of Maran Capital
00:14:59 – Choosing your hunting ground and creating structural advantages
00:21:21 – Researching and choosing companies to invest in
00:28:27 – How building investment knowledge is like training for the Ironman
00:32:17 – Examples and basics of buy-and-build companies
00:41:04 – How buy-and-build can go wrong
00:45:20 – Investing in Clarus and Turning Point Brands
00:51:40 – The value vs. growth debate
00:54:57 – Investing in SPACs
00:58:06 – Thesis drift and mental models
01:02:21 – Resources for learning about investing