#21 Maran Capital: Investing in Buy and Build Compounders in Public Markets | Dan Roller, Founder & CIO

“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.

Show notes with links, quotes, and a transcript of the episode:

https://www.danielscrivner.com/notes/dan-roller-outliers-show-notes

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

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