The Intrinsic Value Podcast explores Chapters Group, a German holding company, as a potential early-stage compounder. Daniel Mahncke introduces Chapters, noting its unique shareholder structure, including Mitch Rails (Danaher founder), Daniel Ek (Spotify founder), and William Thorndike. The discussion highlights Chapters' strategy of acquiring niche software companies in the DACH region, emphasizing a founder-friendly approach contrasting with typical private equity tactics. Chapters operates through specialized platforms, focusing on public sector, enterprise, and financial technologies, with examples like Peak Mobility (public transport software) and Opus (orchestra management software) illustrating their niche focus. While dilution is a concern, the hosts find reassurance in the continued investment from long-term shareholders and management's focus on value per share. Ultimately, they decide to allocate a 1% position to the portfolio.
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