Rainwater Equity Podcast

Joseph Shaposhnik, founder and portfolio manager of Rainwater Equity, joins Interactive Brokers to discuss recurring revenue investing and durable growth. He walks through the three pillars of the strategy, a case study on Loar Holdings, and audience questions on Constellation Software, capital allocation, and more.Learn more about the Rainwater Equity ETF (NYSE: RW): www.rainwateretf.comConnect with our team: [email protected] Topics & Timestamps00:00 - Welcome

00:30 - Introduction & Joseph's background

03:00 - Origins of the recurring revenue strategy

07:00 - The NVIDIA lesson: why predictability matters

09:00 - The big idea: three pillars of the strategy

11:00 - What makes a business "recurring revenue"

16:00 - Where to find these businesses

17:00 - Case in point: the airplane seatbelt monopoly

19:00 - Predictable vs. unpredictable businesses, side by side

21:00 - Pillar two: investing with great management

22:00 - Buffett on "fanatics" (video clip)

28:00 - Pillar three: holding for the long run

30:00 - How the team sources ideas

32:00 - Case study: Loar Holdings

39:00 - Other holdings in the portfolio

41:00 - Audience Q&A begins

44:00 - Constellation Software and AI disruption

49:00 - Share buybacks

55:00 - Due diligence timeline

56:00 - AI's impact on the research process

01:00:00 - Are these "forever stocks"?

01:03:00 - Closing

Subscribe for more ETF insights and upcoming updates.#RainwaterEquityETF #etfinvesting #recurringrevenue #longterminvesting #compoundingreturns #investmentstrategies DisclosurePerformance 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.

Rainwater Equity ETF (NYSE: RW) portfolio manager Joseph Shaposhnik provides a Mid-Year 2026 Shareholder Update to investors.

IN THIS UPDATE YOU'LL HEAR ABOUT

The investment framework — The principles that guide our decisions: recurring revenue, exceptional management teams, and the discipline to hold great businesses for the long run

Select holdings — A closer look at individual portfolio companies and drivers of performance

Shareholder update — Where the portfolio stands today and how the strategy is being put into practice

Investor Q&A — Joseph answers questions submitted by investors and advisors

Learn more about the Rainwater Equity ETF (NYSE: RW): www.rainwateretf.com

Connect with our team: www.rainwateretf.com

DISCLOSURES & DISCLAIMERS

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.

Not Investment Advice: The information provided in this video is for educational and informational purposes only and should not be construed as investment, legal, or tax advice. The views expressed by Joseph Shaposhnik are his own as of the date of recording and are subject to change without notice.

No Solicitation: This content does not constitute an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Rainwater Equity. Any such offer or solicitation will be made only by means of a confidential private offering memorandum or prospectus.

Risk of Loss: Investing in securities involves risk, including the potential loss of principal. Past performance is not indicative of future results. There is no guarantee that the investment strategies discussed will be successful or that the target returns mentioned will be achieved.

Portfolio Holdings: Specific securities mentioned (such as Constellation Software, TransDigm, and Loar Holdings) are discussed to illustrate investment philosophy and should not be considered recommendations to buy or sell. These securities may or may not be held in portfolios managed by Rainwater Equity at any given time.

Joseph Shaposhnik, Founder and Portfolio Manager of Rainwater Equity, joins Interactive Brokers to discuss recurring-revenue investing and the search for durable growth.

Joseph walks through the strategy’s three core pillars, presents a case study on Loar Holdings, and answers audience questions about Constellation Software, capital allocation, share repurchases, artificial intelligence, and more.

Learn more about the Rainwater Equity ETF (NYSE: RW):

https://www.rainwateretf.com⁠

Connect with our team:

[email protected]

IMPORTANT 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 the performance quoted. Visit ⁠https://www.rainwateretf.com⁠ for the Fund’s standardized performance and holdings information.

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 Distributors, LLC is not affiliated with Empowered Funds, LLC, d/b/a ETF Architect, which serves as the Fund’s investment adviser.

In this conversation, Joseph Shaposhnik, Founder and Portfolio Manager of Rainwater Equity, sits down the hosts of Excess Returns to talk about investing through geopolitical shocks, AI disruption, and massive capital cycles. Joseph shares how disciplined investors can stay focused on durable businesses and long-term free cash flow—rather than reacting to short-term headlines. He also breaks down how his team evaluates opportunities across AI, defense, and broader markets, and where he sees the most compelling opportunities today.

This video originally was posted on the Excess Returns Spotify channel. Rainwater Equity has received permission to repost this content. Find Out More About Joseph Shaposhnik: LinkedIn: https://www.linkedin.com/in/joseph-shaposhnik-21424a5/Follow on X: https://x.com/JShaposhnikDisclosure 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.

Rainwater Equity ETF - Overview Cash Flow refers to the net amount of cash and cash equivalents being transferred into and out of a business.

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.

How can recurring-revenue businesses provide greater stability and long-term growth for investors? In this 2026 Shareholder Update, Joseph Shaposhnik, portfolio manager of the Rainwater Equity ETF (NYSE: RW), explains the fund’s investment process, reviews recent performance drivers, and discusses current portfolio positioning.The conversation also explores key themes including artificial intelligence (AI), Constellation Software, and investment lessons learned from working with Fidelity Contrafund manager Will Danoff. Designed for financial advisors and long-term investors, this update highlights how recurring-revenue business models can support more consistent growth and fewer surprises over a full market cycle.

Find Out More About Joseph Shaposhnik:

LinkedIn:

https://www.linkedin.com/in/joseph-shaposhnik-21424a5/

Follow on X:

https://x.com/JShaposhnik

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.

In this conversation, Joseph Shaposhnik, Founder and Portfolio Manager of Rainwater Equity, sits down the hosts of Excess Returns to share the core principles behind his long-term investment approach and the philosophy that has guided decades of successful investing. Joseph reflects on his time as a portfolio manager at TCW, discusses what truly drives durable outperformance, and explains why Rainwater focuses on businesses with recurring revenue, strong free cash flow, and management teams deeply committed to long-term value creation. The discussion also draws lessons from legendary investors including Warren Buffett, Bill Miller, and Peter Lynch, while addressing how valuation, portfolio construction, and market structure have evolved in an era dominated by passive investing. This episode offers a clear look into how Rainwater Equity thinks about owning businesses for many years – not trading headlines – and why compounding, patience, and discipline matter more than ever.

Find Out More About Joseph Shaposhnik:

LinkedIn:

https://www.linkedin.com/in/joseph-shaposhnik-21424a5/

Follow on X:

https://x.com/JShaposhnik

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.

This video was originally produced and published by Excess Returns. While Rainwater Equity has received permission to repost this content, it does not necessarily endorse all views or advertisements presented by the original creator or the Spotify platform.

Discover why recurring revenue businesses are some of the most powerful long-term compounding opportunities in the stock market. In this inaugural Rainwater Equity ETF (NYSE: RW) webinar, Portfolio Manager Joseph Shaposhnik explains the rationale for launching RW, outlines the fund’s focus on predictable cash-flow businesses, and answers advisor questions on valuation, AI, global expansion, and ETF structure. This replay is designed for financial advisors, institutional investors, and long-term investors seeking durable growth strategies backed by recurring revenue.

Find Out More About Joseph Shaposhnik:

LinkedIn:

https://www.linkedin.com/in/joseph-shaposhnik-21424a5/

Follow on X:

https://x.com/JShaposhnik

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.

Clay talks with Joseph Shaposhnik about Owning Best-in-Class Businesses and his new ETF, Rainwater Equity (RW), launched on June 18th, 2025. The fund targets recurring revenue businesses and aims for above-average capital growth.

Learn more about Rainwater Equity: https://rainwateretf.com .

Visit rainwateretf.com for more information.

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.

Click here for more information:

https://rainwateretf.com/glossary/