Prevatt Capital

“But as a business, what I'd love to do is to Close the fund to outside investors. Focus on long-term capital-weighted returns, not just time-weighted returns.”

“We own Norbremse, which is a German rail brakes company. And globally, it's basically, for the last century, been a duopoly between Wabtec in the US and Norbremse in Germany producing rail brakes.”

“When the fund launched in May, 2020, the bottom in the market was in March, but people were still very fearful of COVID and no one was traveling. And so we felt that we were able to buy booking Close to a 10% normalized free cash flow yield with a terrific CEO…”

“And I think one of the important things is finding high talent and high agreeableness. Generally, these two don't go together.”

“Broadly, globally, I think there's between 500 to 600 companies, and some markets are obviously a little harder to invest in than others internationally.”

“We will only double down once. If you start doing more than that, you're essentially following the Martingale strategy, which is also known as gambler's ruin, and it's always the house that wins, not the gambler.”

“You have some like Transdime, for example, which relies on FAA certification and are pretty open about they triple the pricing when they purchase a little part, and they raise prices over six percent per year, regardless of what the underlying cost of producin…”

“We have four analysts plus myself. So five at the firm, arguably we might be overstaffed relative to our assets, which are approaching four hundred fifty million, but we don't have to hire more as we get bigger.”

“So 10 to 20 stocks, but we've really averaged sort of 16 over the life of the fund.”

“Sometimes we've misjudged management, so we did own a financial exchange, and then they went out and spent half a billion dollars on a crypto exchange, and they surprisingly wrote down the acquisition the same quarter that they made it. To me, that was spectac…”