Exceptional businesses with room to compound.
We look for businesses that can scale globally in large, growing markets; provide products and services loved by customers; and ride one or more technological adoption curves.
Large and growing addressable markets, with the ability to compete against non-consumption.
Exceptional products, demonstrated product-market fit, and no close substitutes.
A defensible and growing competitive advantage—a moat that widens over time.
Feedback loops in which usage creates data, improves the product, and attracts more users.
The ability to reinvest free cash flow at high rates of return for years.
A strong balance sheet that preserves investment optionality.
Founder-led or mission-driven management teams that think like owners.
A valuation that offers a significant discount to our estimate of intrinsic value.
Would you personally go to work at that company, receiving your entire compensation in stock?
Honesty, curiosity, and intellectual flexibility.
First and foremost: honesty and integrity. We understand that the most valuable asset we have is our reputation. A good reputation takes a lifetime to build and a few seconds to destroy.
We are relentlessly curious about the world, how things work, whether our mental models can be improved, and how to better serve our clients. We hold strong opinions, but change our minds quickly when the facts change.
We are always testing, evolving, and improving. We are in perpetual beta.
We eat our own cooking.
Your manager has the majority of his family’s net worth—and all of his own net worth—invested in the fund. Our family rejoices or suffers alongside our clients, and we could not do it any other way.
Excellent results, measured over generations.
Our mission is to deliver excellent investment results to our partners and clients. Our goal is to maximize their generational wealth by compounding capital at above-market rates over long periods of time.
We are thinking about our clients’ kids and grandkids, and we attract partners who have a similar long-term mindset.