TIP731: OWNING BEST-IN-CLASS BUSINESSES

W/ JOSEPH SHAPOSHNIK

19 June 2025

On today’s episode, Clay is joined by Joseph Shaposhnik to discuss the launch of his new ETF, Rainwater Equity. The Rainwater Equity ETF just launched on June 18th, 2025, under the ticker RW, and its objective is to compound capital at an above-average rate by investing in publicly listed recurring revenue businesses.

The fund Joseph managed at his previous firm compounded at 16.7% since 2015, versus the S&P 500’s 13.1% over that same time period. It was also the top-performing fund out of 343 in its US Large Cap Core Equity category by Nasdaq eVestment.

SUBSCRIBE

Subscribe through iTunes
Subscribe through Castbox
Subscribe through Spotify
Subscribe through Youtube

IN THIS EPISODE, YOU’LL LEARN:

  • Joseph’s lessons from spending a day with Peter Lynch.
  • Why the active management industry is broken and how Joseph has set out to fix it.
  • Why Bill Miller invested in Joseph’s new ETF.
  • Why recurring revenue is the ultimate business model.
  • Whether any of the Magnificent 7 companies fit into Joseph’s recurring revenue framework.
  • The role that valuation plays in Joseph’s quality investing framework.
  • Joseph’s top stock pick to hold for the next 20 years.
  • Why Joseph is attracted to the aerospace aftermarket industry.
  • Why Joseph chose the ETF structure over the mutual fund.
  • How Joseph determined the appropriate position sizing for his fund.
  • 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] Clay Finck: On today’s episode, I’m pleased to be joined by Joseph Shaposhnik to discuss the launch of his new ETF Rainwater Equity. The Rainwater Equity ETF just launched on June 18th under the ticker RW, and its objective is to compound capital at an above average rate by investing in publicly listed recurring revenue businesses.

[00:00:19] Clay Finck: The fund Joseph managed at his previous firm compounded at 16.7% since 2015 versus the S&P 500’s 13.1% over that same time period. It was also the top performing fund out of 343 in its US large cap core equity category. During this episode, we cover what Joseph learned from spending a day with Peter Lynch, why the active management industry is broken and how Joseph has set out to fix it, why Bill Miller provided a cornerstone investment for Joseph’s new ETF, why recurring revenue is the ultimate business model, whether any of the magnificent seven companies fit into Joseph’s recurring revenue framework, the role that valuation plays in Joseph’s investment approach, Joseph’s top stock pick to hold for the next 20 years, why he likes the aerospace aftermarket industry, and so much more as a host here at TIP, I search far and wide to try and interview the very best investors, and Joseph certainly fits the bill.

[00:01:15] Clay Finck: Also, Joseph will be joining us at our summit event in Big Sky Montana. This is a special gathering that TIP will be hosting in September for a small group from our audience to network share ideas and enjoy great company in the mountains. There’s limited spots, so if you’re interested in joining us, you can click the link in the show notes.

[00:01:33] Clay Finck: So with that, I really hope you enjoy today’s episode with Joseph Shaposhnik.

[00:01:41] Intro: Since 2014, and through more than 180 million downloads, we’ve studied the financial markets and read the books that influenced self-made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Clay Finck.

[00:02:05] Clay Finck: Welcome to The Investor’s Podcast. I’m your host, Clay Finck, and today we bring back Joseph Shaposhnik. Joseph, as always, great to have you with us. Great to be with you, Clay. First of all, I just wanna say congratulations. By the time this episode goes live, the Rainwater Equity ETF will have launched under the ticker RW, and the official launch date is June 18th, 2025.

[00:02:28] Clay Finck: And I know we’ve been in touch for a while now, so I know this required just a lot of effort on your end to get this going, so congrats.

[00:02:36] Joseph Shaposhnik: Thank you so much. I, I couldn’t be more excited about it.

[00:02:39] Clay Finck: So before we get to the ETF, I wanted to be sure to mention your recent discussions with Peter Lynch. You spent much of your career working with and studying the greats.

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 CLAY

CONNECT WITH JOSEPH

PROMOTIONS

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

WSB + BFF + RWH Promotions

The Intrinsic Value Newsletter