Sands Capital

“When I joined SANS back in 2006, I still remember it was something like 40% of trading volumes in the U.S. At that time were still being driven by fundamental investors. If you fast forward to today, it's maybe 10% of the market that's still doing that.”

“In many of the markets that we invest in, a disproportionate amount of the economics tend to accrue to the market leader, and therefore you want to own those businesses.”

“Really five to seven years is the minimum you need when the horse really starts pulling the cart, and so that's a fundamental sort of relationship that you have to believe in. Now, that doesn't mean you can completely ignore valuation, and valuation is One of …”

“Well over two-thirds of our clients have now been with us for a decade or longer. Nearly 80% have Been with us for at least five years, and these clients skew very much institutional in nature.”

“Some of the things that he talked about in the books were things like the firm having low turnover as part of its investment strategy, being large enough to obviously pay the bills, but not so large that they're asset gatherers, employee ownership, rather than…”

“Where we typically see the biggest deviations between what we're modeling for a business and sort of what's priced in the stock for looking at sell side models, for example, Is in years three, four, and five, and beyond. And one of the reasons for that is, one…”

“Well, is stay very, very disciplined, and actually, they put the brake on deploying capital when valuations had gotten too elevated and went well over 12 months without deploying additional capital during that time frame”

“The business that's growing at above average rate without competitive advantage, that's really just momentum.”

“So we have over 60 investment professionals, and we own about a 130 public equity businesses across our flagship strategies.”

“When we first invested in MercadoLibre well over a decade ago, there was no fintech business. That was the adjacency that they were able to leverage that relationship that they had with both buyers and sellers. And now the fintech business and the digital wall…”

“The first type of risk that we're really trying to manage for is the impairment of the business relative to what we were modeling for that business over the next five years. So we call business impairment risk, and we call volatility risk. Volatility. We don't…”

“Ultimately, you want to allocate a disproportionate amount of capital to your strongest fits with the criteria, and when you make mistakes, ideally you want them to be relegated to smaller bucket weights in the portfolio.”

“So the window in the private markets, which are the next generation of either public equities that you'd like to own or could be competitive threats to the public equities that you already own, that capability has helped widen our aperture and helped Increase …”

“And at the firm wide level, we own five of the seven across our various different portfolios. But two of them, in this case, Apple and Tesla are companies that we have not embraced.”

“Most businesses are not special. They may be able to grow at an above average rate for a year or two. But the power of mean reversion is very, very strong. However, what we believe is that there's a very small group of special businesses that can defy the laws…”

“Our US strategy has 25 to 30 businesses in it. Our multi-geography strategy is like global and emerging. The sweet spot is closer to 35 to 40”

“If it's a 90 times PE company that's growing earnings only 10%, it's really hard to make the math work long term. But if it's a company that can compound earnings at 45% over the next five years, that can actually be very, very attractive. In an expected retur…”

“So across all of our strategies at Sands, we have about 20% turnover, but that actually includes trims and ads. So if you look at business level turnover, it tends to be closer to 10 to 15%.”

“Ideally, what you'd like to see is when you're doing a look back over rolling previous five, 10 plus year basis, is that your largest weights were disproportionate Contributors to value creation for the portfolio, and then that you had fewer mistakes in your l…”

“And when we kind of went through that entire thought process, we realized that we had as much conviction in Addion as we did before and decided to bring the weight back up to a large bucket weight and essentially double the weight size and take advantage of th…”

“At this valuation, we think that you need much more than just car volumes, time, price, equal revenue, and earnings. You have to bake in a lot more for many of the adjacencies, including its autonomous fleet, and depending on where you are on those expectation…”

“If you're a business that's able to continue to invest when your competitors can't, that actually allows you to expand your moat during a down economic cycle and accelerate coming out of it, which we're seeing with many of the businesses that we're invested be…”