Tracy Britt Cool, a former protégé of legendary investor Warren Buffett, is forging her own path in the investment world with Kanbrick, a firm targeting mid-sized businesses with enduring competitive advantages. Inspired by Buffett's "moat" philosophy, Kanbrick aims to become a haven for family-owned and founder-led companies seeking long-term growth and stability.
Cool, now 39, spent a decade learning from Buffett, starting as his financial assistant and later leading the revival of Pampered Chef and serving as chairman of Benjamin Moore. Her dedication and effectiveness earned her the nickname "fireman" from Buffett, a testament to her problem-solving skills.
While sharing Berkshire's long-term perspective and value-driven approach, Kanbrick operates distinctly. The firm actively participates in acquired businesses, with Cool and her co-founder, Brian Humphrey (another Berkshire veteran), joining boards and evaluating operations and strategies. They currently have nine employees and offices in Nashville and Charlotte, providing operational expertise to acquired companies like Marine Concepts, the boat-cover maker.
Kanbrick focuses on mid-sized businesses (earning $5 million to $50 million in EBIT) across consumer, industrial, and business services sectors. They rigorously evaluate 150-200 companies annually, excluding industries like healthcare and real estate where they lack expertise. This selective approach ensures they find companies with strong competitive advantages ("moats") and talented leadership teams.
Cool identifies a growing demand for alternative investment options. "Many families and founders are exhausted from navigating the pandemic, labor challenges, and inflation," she says. Kanbrick positions itself as a credible alternative to traditional private equity for those seeking long-term partnerships and a values-driven approach.
Kanbrick has secured $220 million and plans to acquire one or two companies annually, holding them for the long term. This commitment to partnership aligns with Cool's vision: "We're going to be partnering with these companies for 10-plus years."
While acknowledging Berkshire's influence on her career, Cool recognizes that Kanbrick will create its own legacy. "There's no business that can replicate what Berkshire has built," she states. However, Kanbrick, with its unique blend of long-term perspective, operational expertise, and focus on fostering sustainable growth in mid-sized companies, is poised to carve its own distinct path in the investment landscape.
