TIP772: HOW GREAT COMPOUNDERS TURN TIME INTO A SUPERPOWER

W/ KYLE GRIEVE

TIP772: HOW GREAT COMPOUNDERS TURN TIME INTO A SUPERPOWER W/ KYLE GRIEVE

27 November 2025

On today’s episode, Kyle Grieve discusses what makes elite compounders so valuable and why they can generate exceptional returns even when purchased at high valuations. He highlights how decentralized cultures, disciplined capital allocation, and durable reinvestment engines set outperformers apart from typical businesses. Listeners will also learn how the combination of high ROIC, reinvestment opportunity, and time creates exponential compounding that traditional valuation models often underestimate.

SUBSCRIBE

IN THIS EPISODE, YOU’LL LEARN:

  • Why Compounders deserve to trade at a premium
  • The surprising ingredient of compounders
  • The three parameters necessary for successful compounding
  • The two approaches for reinvestment that compounders take advantage of
  • How compounders create resiliency
  • The reasons Sweden has so many successful serial acquirers
  • About the two pioneers of Swedish decentralization
  • Why Electrolux has created so many great business cultures
  • The importance of discipline to successful serial acquirers
  • The benefits of working capital KPIs
  • And so much more!

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

 

[00:00:00] Kyle Grieve: What do the world’s greatest long-term compounders have in common? You know, the rare businesses capable of delivering 20 plus percent returns for decades and turning early investments into life-changing wealth, and more importantly, how exactly do they keep it? In today’s episode, we’re going to unpack this puzzle by breaking it into its essential elements, capital efficiency, reinvestment rates, and the underappreciated role of time.

[00:00:24] Kyle Grieve: You’ll discover why so many iconic winners or serial acquirers of tiny niche businesses and how dominant market share durable competitive advantages and smart capital allocation allow them to trade at premiums while still crushing the market’s return. We’ll dive into nine just remarkable case studies from, you know, manufacturers that quietly boost margins through elite working capital discipline to a vertical market software giant that really just cracked the code on perfect management incentives.

[00:00:51] Kyle Grieve: To companies with cultures that are just so strong that they can continue to compound through multiple CEO transitions. This episode is for long-term investors seeking durable low maintenance winners, and for business owners looking to build cultures that attract talent, expand margins, and create lasting competitive advantages.

[00:01:08] Kyle Grieve: Let’s jump right in.

[00:01:12] Intro: Since 2014 and through more than 180 million downloads, we’ve studied the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Kyle Grieve.

[00:01:37] Kyle Grieve: Welcome to The Investor’s Podcast. I’m your host, Kyle Grieve, and today we’re going to talk about a really, really interesting book that I’ve been going through and studying very, very closely and really, really enjoying because it really plays on my love of businesses that are compounders. So as an investor, we have to analyze what we’re going to pay for a business.

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

BOOKS AND RESOURCES

NEW TO THE SHOW?

SPONSORS

Support our free podcast by supporting our sponsors:

Disclosure: The Investor’s Podcast Network is an Amazon Associate. We may earn commission from qualifying purchases made through our affiliate links.

CONNECT WITH KYLE

PROMOTIONS

Check out our latest offer for all The Investor’s Podcast Network listeners!

WSB + BFF + RWH Promotions

The Intrinsic Value Newsletter