AReviewOrTwo@AReviewOrTwo1
2. Idea Generation
"The idea generation process is very organic. We've got 10 stocks, we own them and we're fully invested. I've told our team on any given day you come to work, we're not looking for new ideas. What I want you to do and what I do is go deeper into what we already own. So if there's a customer out there, if there's a competitor out there, if there's a conference out there, let's go attend that and try to turn over one more stone. There are stocks that we own today that we've owned for six years. You can imagine doing work on a stock for six continuous years, in your fifth or sixth year or even in your third year, you're no longer asking the basic questions. You're going several layers deep. I will bet you any amount of money that if you own a stock for three years, by year three, you have turned over the stone on 10 of the companies and in year four you're actually now going quite deep into some of these companies. Some of them might be private, some of them might be competitors, some of them might be just other companies in the supply chain. Odds are your next best idea will come from that diligence process. So we don't do screens, we don't look at 13Fs as a formula for finding ideas. We don't check CNBC or read Substack and newsletters or anything like that. We're doing research and there has never been a day, a week, a month, a quarter, a year where out of that research we don't find 10 other ideas. That's the crux of our idea process. Every single idea we own today came from something else we owned, and I will bet the next 10 ideas will come out of things we own today."
