Editor’s Note: On Tuesdays we turn the spotlight outside of Porter & Co. to bring you exclusive access to the research, the thinking, and the investment ideas of the analysts Porter follows personally.
You likely know our guest this week, Pieter Slegers, after his interview with Porter – Decoding The DNA Of The Next 100-Bagger – or if you attended our Annual Conference last week, you’d have seen him open for the audience on the second day.
Today, Pieter is in the Spotlight to share the details of the new Tiny Titan he’s buying: a serial acquirer of specialized software for niche industries. Enjoy.
P.S. The special partnership Pieter organized exclusively for our readers expires tonight at midnight. So if you’ve not watched Porter and Pieter’s interview on Tiny Titans, go here now.
It’s Time For Our Next Buy
What a lovely time we’re having!
It’s already time for Our Next Buy: Chapters Group (CHG-FF), traded on the Frankfurt Stock Exchange. Or in the U.S.: OTC: MDCKF
Chapters Group is a serial acquirer of specialized software for niche industries.
Backed by world-class investors and led by a talented young CEO, it has quickly grown into one of the fastest compounders in Europe – with a current market cap of just over $1 billion (€896 million).
⚠️ Warning
The stocks we write about at Tiny Titans are… well… Tiny.
Partners could influence the stock price.
⚠️ For Tiny Titans, it’s so important to always use a limit price. ⚠️
For Chapters Group, we use a limit price of €39.50 (about $46) – we enter our order on Wednesday (tomorrow) morning. Shares are currently around €37.60 (about $45).
If the current stock price is above our limit price, we will remain patient and don’t increase our limit price.
What Is Chapters Group?
Chapters Group is a German holding company that owns a growing portfolio of Vertical Market Software businesses.
It buys and builds specialized software companies that focus on specific industries, such as healthcare, automotive, and hospitality … .
Think of it as writing a book: every acquisition is a new chapter in an endless story of compounding.
Under CEO Jan-Hendrik Mohr (only 36 years old), Chapters Group transformed into one of Europe’s fastest-growing serial acquirers.
Chapters owns 48 niche software firms across nine countries, with applications ranging from orchestra management to public transport.
Chapters’ model is based on disciplined decentralization: subsidiaries stay autonomous but benefit from shared knowledge and proven practices across the group.
Backed by top investors like Mitch Rales (Danaher), Daniel Ek (Spotify), and William Thorndike (The Outsiders), Chapters wants to become Europe’s mini-Constellation Software.
Why Is Chapters Group Interesting?
In a nutshell:
- Massive runway Europe has millions of small and medium-sized enterprises and over 190,000 successions coming up in Germany alone, so fertile ground for acquisitions
- Strong moat Mission-critical software with high switching costs and little competition makes revenue sticky and predictable
- Owner-operator culture CEO Jan-Hendrik Mohr owns 7.7%
- Capital-light growth With 80%-plus gross margins and low capex, acquisitions can be scaled efficiently
- Early-stage upside Revenue grew at a 56% CAGR since 2020, and free cash flow is scaling fast
Meeting The CEO
I went to Hamburg in July to personally meet CEO Jan Mohr. You can read the special report about this meeting by joining Tiny Titans before midnight tonight.
Every Tiny Titan gets a score based on 10 metrics.
As you can see, Chapters Group gets a score of 8.0/10.
Reminder: Tonight at midnight, your chance to join Tiny Titans through Porter and Pieter’s exclusive partnership expires. All the details of this special invitation are outlined here for you.
Inside Tiny Titans, Pieter is building an entire portfolio of what he believes are the most exciting, potentially lucrative small-cap companies.
And this isn’t just theory for him. Pieter is deploying $500,000 of his own capital into these companies… and he wants you to join him.
Click here to join him on this journey.