Serial Acquirers vs. Dollar Cost Averaging Investors: A Tale of Two Strategic Minds
We encourage our clients to use dollar cost averaging to achieve their financial planning goals. Read more about dollar cost averaging in the article below.
Did you know that disciplined intentional investing benefits both ‘serial acquirers’ and ‘dollar cost averaging investors’? Here’s why…
In the world of business and investing, success often hinges on discipline, consistency, and a long-term mindset. Two strategies—serial acquisition and dollar cost averaging—might seem to live in completely different ecosystems: one corporate, the other personal. But beneath the surface, they share some striking similarities. Let’s unpack what these strategies are, and why comparing them reveals deeper truths about how wealth and value are built over time.
What Is a Serial Acquirer?
A serial acquirer is a company (or often, a CEO/founder) that consistently grows by acquiring other businesses—often smaller, profitable, and operating in similar or adjacent industries. Instead of pouring all resources into organic growth or one big acquisition, they acquire multiple companies over time. Think:
• Constellation Software
• Berkshire Hathaway
• TransDigm Group
• Danaher (especially in its early years)
These companies don’t just buy businesses randomly. They have a playbook—targeting undervalued or high-margin companies, integrating them efficiently, and improving operations. Over time, each acquisition becomes a “brick” in the wall, contributing to a compounding machine.
What Is Dollar Cost Averaging (DCA)?
Dollar Cost Averaging is an investing strategy where you invest a fixed amount of money into an asset (like an index fund) at regular intervals—regardless of the asset’s price. The idea is to reduce the impact of volatility by spreading purchases over time.
For example, instead of investing $12,000 all at once, you invest $1,000 per month. When prices are high, you buy fewer shares; when prices are low, you buy more. Over time, this smooths out your cost basis and keeps emotions out of investing.
The Similarities: Different Worlds, Same DNA
While one strategy lives in boardrooms and the other in brokerage and retirement accounts, serial acquirers and DCA investors are guided by the same core principles:
Consistency Over Time
- Serial acquirers don’t bet the farm on one massive deal—they make multiple smaller bets over time.
- DCA investors don’t try to time the market—they invest steadily regardless of price.
- This steady drumbeat creates a compounding effect that’s hard to beat.
Embracing Volatility
- A serial acquirer might pick up bargains in downturns or buy quality businesses when others are panicking.
- A DCA investor benefits by getting more shares when prices drop, turning volatility into opportunity.
Process > Prediction
- Both strategies rely on a repeatable process.
- They don’t require perfect timing or predicting market cycles—they require discipline and a long horizon.
Risk Mitigation Through Diversification
- Serial acquirers diversify across industries, geographies, and customer bases.
- DCA investors diversify through time, buying across multiple market conditions.
Why This Comparison Matters
For investors looking to understand great companies, seeing serial acquisition as a form of “corporate dollar cost averaging” helps explain their long-term magic. And for business leaders, the DCA mindset can offer a powerful lens for thinking about resource allocation: steady, unemotional, and consistent actions beat sporadic brilliance.
In both cases, it’s not about finding the perfect moment—it’s about showing up, again and again, with a strategy that compounds over time.
Final Thoughts
Whether you’re building a portfolio or a business empire, success often looks boring up close. But in the long run, it’s that consistency along with a personalized plan — adding one good thing after another — that builds extraordinary results.
This is just one way we at Krozel Capital help our clients achieve their financial goals.