Mark Leonard: How About A Thought Experiment

Johnny HopkinsMark LeonardLeave a Comment

In his 2015 letter to shareholders, Mark Leonard posed the following thought experiment: How about a thought experiment? Assume attractive return opportunities are scarce and that you are an excellent forecaster. For the same price you can purchase a high profit declining revenue business or a lower profit growing business, … Read More

Mark Leonard: It’s Time To Lower Hurdle Rates

Johnny HopkinsMark LeonardLeave a Comment

In his latest letter to shareholders, Mark Leonard has converted from his long held philosophy to maintain his current hurdle rates which means he can now invest all of the cash that his company produces rather than simply paying dividends saying, “Historically, we have paid three special dividends, and for … Read More

Mark Leonard: Dealing With Potential Investments That Don’t Quite Meet Your Hurdle Rate

Johnny HopkinsMark LeonardLeave a Comment

In the 2017 Constellation Software President’s Letter, Mark Leonard discussed his process for dealing with potential investments that don’t quite meet their hurdle rate. Here’s an excerpt from that letter: Maintaining Investment Discipline: I recently worked on a large transaction. With every day that passed, I could feel my commitment … Read More