The Wisdom Wall

“the biggest mistakes are selling the Costco's too early, because, uh, you know, the IRR is totally dependent upon what you assume the exit multiple is, like, and that is difficult to be precise about, you know, what the right exit multiple is for a business.”

“That's the nice thing about the private markets is that Once you invest, you can't sell, and usually for the best companies, that's a huge benefit ultimately.”

“risk management cannot happen after the fact. Like, anything you do after the fact is not risk management. It's actually just destroying capital. Risk management has to happen before the fact. Meaning, like, you size these positions so that, like, When it goes up, you don't have to cover.”

“Like, the U.S. is pretty quick at, like, seeing change happening, and then pricing in that change. In Europe, I find, um, you know, once a company, like a company like Rolls had underperformed for so long, I guess that European mutual funds, they just kind of got in their head that like, Rolls is something we just…”

“you're always gonna make the most money from multiple expansion. Just like, um, it's hard to have that differentiated view on a company's growth rate.”

“you can sell, like, the best companies you can sell easily, but those aren't the companies you want to sell. You know, it, it's, ah, we rarely transact in the secondary market, um, because, you know, we don't want to sell the best companies, and, um, and it's hard, like people think you can just transact in the…”

“if you have a portfolio of things that you've built over time, our monthly returns and quarterly returns are purely an output. Like there's nothing, it's, it is arbitrary in some respects.”

“if you buy great businesses, you overpay for them a little bit, you get their earnings wrong a little bit in the short term. Over time, value, you know, compounds, and time is your friend. Macro, that's not the case. Um, it's more of, like, a binary bet.”

“ultimately, the bottleneck is going to be electricity, and so companies that enable electricity production, assuming they have some moats, are going to be good investments.”

“Up until the LLMs are very few tech companies where it's like a huge fixed investment. And then the incremental, ah, margins on the sales are extremely high.”

“I find that, like, um, generally, companies that have secularists almost never get bought. Like, I rarely has, do I ever see a CEO say, I want to go buy something that grows slower than I do, right? Like, this doesn't happen, right? Nobody wants, like, Take the time to do an acquisition that's going to, you know,…”

“if I'm thirty billion dollars, it's really, you can't really short five billion dollar companies”

“What I'd say about this job, is that there's like an asymmetry of emotion, right? Like, when you're making a lot of money, it's not like I'm, like, tap dancing around my house, like, euphoric, like, my lifestyle doesn't change. I feel like, yes, I'm happy that we're succeeding, but, you know, it's, I'm happy, but I'm…”