Owning Best in Class Businesses with Joseph Shaposhnik - Rainwater Equity Launch TIP731

Owning Best-in-Class Businesses w/ Joseph Shaposhnik | Rainwater Equity's Launch (TIP731) Clay talks with Joseph Shaposhnik about his new ETF, Rainwater Equity (RW), launched on June 18th, 2025. The fund targets recurring revenue businesses and aims for above-average capital growth. What you'll learn here: 00:00:00 - Intro 00:01:08 - Meeting with Peter Lynch 00:02:49 - Lynch's wide investment spectrum: small caps, turnarounds, and growth 00:05:18 - Restaurant investing with Peter Lynch: Korean BBQ and Mediterranean food 00:07:14 - Lynch's contrarian view: investing before fundamentals turn 00:09:10 - Why IPOs are overlooked goldmines 00:11:30 - Why Joseph left TCW despite top-tier performance 00:12:30 - How benchmark obsession leads to underperformance 00:14:48 - The Nvidia case: Why forecasting is so hard even for insiders 00:17:20 - Why most investors overlook the importance of management 00:19:23 - Tax drag and performance erosion in mutual funds vs. ETFs 00:25:01 - The story behind Bill Miller's cornerstone investment in RW 00:27:34 - Why recurring revenue is the ultimate business model 00:32:30 - The 'magic' trio: recurring revenue, aligned incentives, smart reinvestment 00:33:51 - 50% of all stocks underperform, how RW avoids blow-ups 00:37:59 - Recurring revenue isn't boring: Broadcom, AI, and global growth potential 00:40:10 - Do any of the Magnificent Seven fit the RW strategy? 00:42:02 - AI adoption, Google's threat, and why Broadcom fits 00:44:43 - What RW doesn't do: no market timing, no performance fees, no benchmark hugging 00:46:52 - Addressing valuation concerns with a real-world Constellation Software case 00:52:21 - Joseph’s top stock pick for the next 20 years 00:58:13 - Why recurring revenue businesses are more resilient in an uncertain macro environment 01:00:10 - Aerospace aftermarket thesis: Loar, TransDigm, Heico 01:05:42 - Why the ETF structure is superior for investors 01:08:31 - Why RW has a 20-stock portfolio and how they size positions 01:10:48 - Key differences between RW and Joseph's TCW fund 01:13:10 - Learn more about the Rainwater Equity ETF Visit rainwateretf.com for More Info Disclosure Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so shares may be worth more or less when redeemed or sold. Current performance may be lower or higher than that quoted. Visit www.rainwateretf.com for the fund’s standardized performance and holdings details. Cash Flow refers to the net amount of cash and cash equivalents being transferred into and out of a business. The fund is distributed by Pine Distributors, LLC. Pine is not affiliated with Empowered Fund, LLC dba ETF Architect, which serves as the Adviser to the funds. Click here for more information: https://rainwateretf.com/glossary/