Case StudiesExpertsPodcastRole ModelsSuperInvestor

Investing Ep027: Travis Jamison – Capital Allocator in the making

By July 22, 2017 No Comments

Travis Jamison is a serial entrepreneur and CEO of Supremacy SEO and founder of Moat Ventures. Travis is a legend in his industry, but he is also the perfect case study how far you can take the concept of cash engines.  He is part of a new generation of SuperInvestors and Capital Allocators, who has found a “second calling.” And no doubt, he is on the way to becoming one of the greats in investing with continuous high compounding returns and a blueprint that will see him have an edge for years to come.  Today, Travis is 32 years young.

 

Travis Jamison - 8020 Investing ShowThe best investment everybody can make is building a business – people get wealthy by creating businesses and then expanding  that wealth by traditional investing

Show Notes  Timeline

Part I: Maker of Cash Engines

  • Sees the world through an algorithmic lens
  • A big proponent of Rob Walling‘s The stair step method (concept of bootstrapping)
  • Small supplement company 7 years ago
  • Started an SEO company early on
  • Bootstrapped more companies (cash engines) along the way
  • Reached financial freedom around 5 years ago
  • Ca. 2 years ago, he sold two of his cash engines that would guarantee complete financial independence
  • It also provided the capital for his new calling: “Capital Allocation”
  • His spending habits haven’t changed much – “still wearing H&M shirt”

 

Part II: Capital Allocation Strategy

  • He still operates a cash engine platform that guarantees his financial liquidity
  • Selling parts of his cash platform gave him time to reflect and build up his knowledge base investing
  • In developing his investment philosophy he quotes Charlie Munger – “Avoid doing dumb stuff!”
  • Risk Management: Influenced by Taylor Pearson, he has adopted a Taleb Risk Management and portfolio management approach of a barbell curve
  • Travis allocates 80% to cash engines he understands, can manage and he perceives as low risk
  • The remaining 20% is allocated into aggressive asymmetric bets
  • A core aspect that will drive future high returns will be the famous “Ginsburg Case Study” he first published on the DC Forum (A closed membership site part of the TropicalMBA)
  • This case study provided a wealth of information, data, and experience – a blueprint Travis aims to replicate
  • Right now, he is working on his deal-flow in order to find the best investment ideas that fit his requirements
  • He is on the way to becoming a successful capital allocator

Links

SEO Supremecy

Moat Ventures

Twitter: @Travis_Jamison

 

New Book: The Death of Retirement

If you want to learn more about Travis and his approach to managing cash engines and allocating capital, sign up here to secure your free copy of David’s new book

 

More Notes

The Stairstep Approach to Bootstrapping by Rob

*Strong believer in the 1000 day-rule made famous by Dan Andrews (TropicalMBA)

  • Creating cash engines is “hard work” and requires some luck, but putting your head down for 1,000 days can see you through to the end.

*BERKSHIRE HATHAWAY INC. ACQUISITION CRITERIA

We are eager to hear from principals or their representatives about businesses that meet all of the following criteria:

(1) Large purchases (at least $75 million of pre-tax earnings unless the business will fit into one of our existing units),

(2) Demonstrated consistent earning power (future projections are of no interest to us, nor are “turnaround” situations),

(3) Businesses earning good returns on equity while employing little or no debt,

(4) Management in place (we can’t supply it),

(5) Simple businesses (if there’s lots of technology, we won’t understand it),

(6) An offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).

*Nate Ginsburg Case Study: Based on blog post first published on the DC Forum, a membership site managed by Dan Andrews and Ian Schoening

Capital allocation describes how businesses divide their financial resources and other sources of capital to different processes, people, and projects. Overall, it is management’s goal to optimize capital allocation so that it generates as much wealth as possible for its shareholders.