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How I Bought 8 Traditional Businesses and Built a $127M Portfolio | Rafael Quinn Interview
Description
Ever wondered who are the young folks who build these great business portfolios?
2020 $17.0m
2021 $44.1m
2022 $64.9m
2023 $126.8m
All that within a reasonably short time.
While spending tons of time with kids and family.
I mean today Rafael Quinn is 44 years old, but decades from now people will be Googling him to find out how he started this massive conglomerate called Alternative Holdings.
The best investment advice:
• Buy companies you understand
• Run by people you want to work with
• Pay a fair price
“No matter how important I believe cash-flow is. Every 6 months I’m reminded again of how much more important it is.”
We discuss:
— Why they look at EBIT instead of EBITDA
— Dividend payments while building wealth
— A 5 year period of doing ZERO deals
— How to create value by prioritizing your strengths
Show notes:
00:00:00 - Intro
00:00:23 - At 26 he sold everything, slept on a floor for 15 days and moved to Panama
00:02:55 - 1st acquisition and how it all got started
00:05.00 - How much money Rafael invested in the first deal
00:07:50 - The importance of having the right co-founder - whoever says no wins
00:11:00 - “Better be lucky than smart”
00:11:26 - Being investor vs operator
00:13:30 - The number 1 key factor of the most successful holdco conglomerates
00:17:55 - The amount of debt they use
00:21:20 - What has been the average acquisition multiple
00:31:46 - Time spent on each business per week
00:39:40 - CEOs and their attitude & work ethic pre- vs post-acquisition
00:42:50 - The acquisition process and the discipline of say no to 100s of businesses
00:48:01 - Cashflow, cashflow, cashflow
00:51:10 - Spending time with kids is the best thing ever
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Rafael on Twitter: https://twitter.com/RafaQuinn
This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.