Benchmark Consolidated is the personal investment vehicle for Harry Spartels. Benchmark operates as a diversified holding company, and its objective is to compound capital at attractive rates over the long term. The strategy involves providing capital and management expertise to the operating businesses it invests in, alongside passive long-term equity investments.
Operating Businesses
Investment Company
Founded
Benchmark Consolidated will either start or purchase operating businesses. The objective is to have these assets produce free cash flow, with the ability to pay dividends to the parent HoldCo. Funds are then allocated to SCI for long term compounding purposes, under the following investment framework:
To hold companies for a long period of time (ideally, 10-20 years), they inherently need to be great.
If it is not great, it is probable the business will struggle to compound earnings above its cost of capital for an extended period of time.
As a general rule, the business will need to be best in class (possibly, but rarely the number 2 player), and it must have a number of competitive advantages/powers.
The greatest businesses in the world can be terrible investments. Don't overpay.
The strategy is consistent with the following quotes:
"The big money is not in the buying and the selling, but in the waiting."
- Charlie Munger
"There seems to be some perverse human characteristic that likes to make easy things difficult."
- Warren Buffett
That being said, there are two scenarios where selling may be required:
- The business appears to be extremely overvalued
- The thesis is broken, and the business has lost its advantage over its competitors
We’re always interested in hearing about new investment and partnership opportunities.