NZS Capital

“One of the things that we're careful about is like looking for companies where, you know, part of their moat is kind of you know, inserting themselves into the value chain or into their you know, their customers, you know, share of wallet basically, where they…”

“We use conviction as a synonym for overconfidence. I think that's what Really is the right way to, that's the right way to think about it. Conviction for us means, hey, I've done a ton of work, so I've got a lot of sunk costs, which means I've got bias, and I …”

“And so this would be a company like companies we own in the head of the portfolio, be someone like a Microsoft or a TSMC where we're not looking for like value stocks or kind of like cheap companies. We're looking for companies that are healthy growers that we…”

“You know, it's really more about resilience than it is about predicting the future. And it's about adaptability. Like biology doesn't really care that much about the future. They care about adapting to this wide range of futures, right? Like my bees don't real…”

“They're very hard to replicate, not because what they're doing so technically hard, it's hard, but it's because the breadth of what they have would take you decades to recreate.”

“And the way we think about it is we can wander around not knowing what we're doing and waste 90% of that time. And 10% might be really useful and one percent might be absolutely watershed. And that's really all we're looking for. But you can't ever just get to…”

“We don't know how the future is going to unfold because the system is interacting together, and it creates what's called emergent behavior, and emergent behavior makes predicting useless in most cases, and we can have guidelines and heuristics, and those are a…”

“We have about a third of the portfolio in, in semis.”

“When you leave money on the table, what you're doing is you're creating goodwill for your customers and you're buying the company duration, which is oftentimes the way to maximize total value, right?”

“So we concentrate resilience. That's about 15 names and just over half the portfolio. And then we distribute optionality. So that's about 40 names. Also just under half the portfolio. Max position size one and a half. And in the middle is between one and a hal…”

“I mean, I guess it'll never be our, like, a 10% position for that reason as there is always this risk”

“We think investing is inherently a team sport. It's a terrible solo sport for the most part. And the way we view team is our role is calling out bias in each other.”

“What we're really playing for in the optionality, half the portfolio is asymmetry. And really it's not about batting average. Like it's okay if we're only right. 30% of the time, which is not intuitive at all for public markets investors.”

“We've owned China tech for a long time, but when we put this portfolio together at the end of twenty-nineteen it just looked Sketchy to us, honestly. I don't know what there's a lot for lack of a better word. And so we own zero, zero China tech.”

“Some companies in the portfolio we admire that, that do that would be someone like Texas Instruments where they have a really decentralized Culture and they actually push responsibility and decision-making down into kind of the deeper parts of the organization…”

“Valuation is a key piece. And this is the piece that we get every day as public investors and valuations, expensive valuations force predictions. I have to believe a lot more at 10 times sales than I do at 10 times earnings, right?”

“We do try to write a lot. We put it all on the internet immediately. It is everything that we use internally. Nothing's held back because we know when we put it back, when we put it out there, we're going to get more value back.”

“With a company like Zoom, which we never owned because, you know, I don't know, this bad call. It looks a lot to us like a feature, and then, so now the question is, can it become a product and eventually maybe a platform?”