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Update from the PMs – July 2025

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– Andrew Macken & Chris Demasi


 

This letter marks Montaka’s 10-year anniversary. We are so humbled by the ongoing support and patience of Montaka’s investors, particularly those who have partnered with us since the early days.

At the heart of this Monocle is a deep exploration into something that has been central to Montaka’s investment insights over the past decade: the ‘flywheel’ conceptual model. That is, the business dynamic where a company shares its economics with its customers, which creates self-reinforcing symbiotic benefits to both.

Flywheels strengthen a company’s competitive advantages and increase the likelihood of reliable, long-term growth. Yet this highly valuable dynamic is routinely underestimated by markets and only achieved by a select few companies. Finding and owning these on your behalf remains Montaka’s relentless focus for the next 10 years and beyond.

In Why Competitive Advantages Matter – And How Flywheels Make Them Stronger, Andy takes a look at flywheels from a philosophical perspective. He illustrates how it is a conceptual model that connects so many investments in Montaka’s portfolio. And this model is at the core of why we continue to see substantial upside in our investment holdings.

One of these investments is US hard surface flooring retailer, Floor & Decor. In How Floor & Decor Outperforms Home Depot & Lowe’s in the $40B Flooring Industry, Lachlan answers important questions relating to the company’s flywheel and the large opportunity that lies ahead.

Finally, in this month’s Spotlight Series Podcast, Andy interviews Lachlan on ‘scale economics shared’ – another name for a flywheel, and a topic explored in his May essay titled Patience and Probabilities: Where Montaka’s Competitive Edge Shines’. We explore mini case studies on the flywheels of Amazon, Spotify, and Floor & Decor.

 

 

Sincerely,

Andrew Macken & Chris Demasi


 

Podcast: Join the Montaka Global Investments team on Spotify as we share real-time examples and investing tips that govern our stockpicks. Click below to listen. Alternatively, click on this link: https://podcasters.spotify.com/pod/show/montaka

 

 



Note: Montaka is invested in ServiceNow & Salesforce.

Andrew Macken is the Chief Investment Officer & Chris Demasi is the Portfolio Manager at Montaka Global Investments. 
To learn more about Montaka, please call +612 7202 0100 or leave us a line on montaka.com/contact-us
 
Disclaimer :

This content was prepared by Montaka Global Pty Ltd (ACN 604 878 533, AFSL: 516 942). The information provided is general in nature and does not take into account your investment objectives, financial situation or particular needs. You should read the offer document and consider your own investment objectives, financial situation and particular needs before acting upon this information. All investments contain risk and may lose value. Consider seeking advice from a licensed financial advisor. Past performance is not a reliable indicator of future performance.

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