buddy garrity search fund

@shortsqueeznews do you always rip off the day's newspaper stories without attribution?

BREAKING: Jason Wright, a partner at private-equity firm Apax Partners, is selling his Miami Beach home for $110 million. Wright bought the home for $18.5 million in 2021.

@kylehtucker I like this idea, but not sure it's fair to put thorndike in that bucket? his public investing strikes me as more like the other camp, even if it's more about betting on ma jockeys than the tech bros are

there’re many old value pe/hf dogs who are one-dimensionally cheap and love the compelling math of bad companies, so they end up in value traps, grindy 2 baggers over 6 yrs etc (i.e. little to no chance of compounded/non-linear outcomes from things like high returns on capital etc) but there are also many out of touch vc/growthy folks who seem to have basically no regard for things like math, fundamentals, price etc. so i have a theory that best investor guys in 2026 should be like 50% Buffett/Thorndike/Rasmussen/etc and 50% Paul Graham/Theil/Helmer/etc said differently, some combination of each side of the below dichotomies: >empirical/data-driven vs anecdotal/feel (although I think Helmer’s a pretty rigid empiricist) >avoids egg-on-face vs believes “pessimists-get-to-be-right-but-optimists-get-to-be-rich” >base-rates/past vs open-to-paradigm-shifts/new-world-economics (e.g. buffet in late 90’s annual was asked why he didn’t invest in internet/tech and he said something like “show me one internet company w more than $100m revs”…so correct via base rates, but also just so wrong) >rigid vs flexible >multiples etc. vs network effects/winner-takes-all, returns on capital, 0 marginal costs, TAM etc >math vs idea >value vs growth >east vs west >quantitative vs qualitative >past vs future >pe guy vs vc guy etc (for sure overly rigid dichotomies but each side is probably some composite those words) I think Steve Mandel has some great commentary that gets to this balance, here's one example (and Mandel generally seems like a good representation of this balance) (via awesome @joyscompounding interview) (@hamiltonhelmer, @verdadcap, @paulg tags) (pls send farm any $2m EBIT+ deals!)

@bucketshopcap it always is?

Might end up pulling an Ackman and selling GOOG to fund MSFT if I/O is a waste of time.

@51bodila almost nobody leaves from them? 😆

How Citadel looks inside: Head of Europe shared a detail that nobody sees and it makes ~$10B/year profit - he retired from the fund, but came back after just 1 year and explained why 5-min to understand why every junior wants to get into Citadel and why almost nobody leaves from them

@kab604 intl - kinda fintwit famous since buffett mentioned him with seth klarman and li lu a while ago. he has done better than them and ted/todd since then.

@Goulderbilt Awww, of course. And here I thought I had finally found a PM with balls. Rest of book international or what's the deal with it not showing up? No clue who he is

My favorite US dealership stock is $GPI - and I also don't like $LAD! - but I don't have the balls of this fella:

@BushwoodCap tbh, spoken as hater of most undperforming value investors, this is pretty strong performance showing skill and justifying fund's existence. they will eventually dig out of this small u/p hole and are providing legit beneficial diversification for LPs.

Bill Nygren's Oakmark Fund $OAKMX has underperformed the S&P 500 going back 20 years. AUM = $24.4 billion. Collecting 60-90bps year (depends on share class). Takeaway? Marketing/distribution > performance

@valiovalentino it's at 25x right now and like 2% short interest? how is it possibly equally despised to 13x?

Kind reminder that Akre bought $MCO at a P/E of 13 when it was equally despised by investors.

@FrancoOlivera adam neumann capital allocation > tom rutledge, this really hurts

When does $CHTR distribute preferred stock to shareholders?

@SMBfugazzi my pretty strong (but biased) belief is that small self-funded searchers (not you!) mostly need to buy smaller and try to scale up to LMM size themselves

@Goulderbilt Many variables. Overpromised values leading to dead deals / fatigued owners. AI destroyed e-marketing. Apple destroyed calling. PE downmarket. Well funded HoldCos bidding on any size. Biggest disconnect is founders perceive increased inbound as justification for increased value

I’ve been investing for 10+ years and have never seen such a horrible deal sourcing environment. I consider myself to be one of the more resourceful people when it comes to “breaking in” to a company or sector. There is little that works. Calls, texts, emails. Mostly Dead.

@yetanothrsearch and lmm home service multiples still only going up!

I took a ~5 year gap from PE.. I am amazed at how different the environment is how than it was just after COVID. Add-ons I consider strong strategic and financial cases are getting passed because focus is on liquidity/exit events, not deploying capital.

@cannibalstocks bullish $nvda

The Peer Multiple Massacre Screenshot this. Tape it to your monitor. MercadoLibre. Latin America super app. 45 times earnings. $MELI Sea Limited. Southeast Asia super app. 35 times earnings. $SE Adyen. European payments machine. Around 30 times earnings. $adyey Kaspi. Higher margins. Higher ROE than all of them. Stronger moat than all of them. The dot at the end of the URL is the only reason you can still buy this at 7 times earnings. $KSPI @MohnishPabrai cannibalstocks.com/p/while-everyo…

@blueprintsmb22 easier to walk away to search (and probably more common these days) when 2/3 your funds failed and the other 1 was run by total sociopaths

Yes but what I’ve found is that it requires the death of the ego for many to walk away from fantastic jobs. I like the boring nature of my day in manufacturing and don’t miss the fancy investor conferences or sellside paid lunches and dinners in NYC. My day starts early and basically my week is spent at the factory with evenings and weekends w my wife and daughter. Simple. Alot of my buyside network wld hate it and they tell me this daily 😂x.com/bedouincap/sta…

Microsoft Copilot is a truly terrible piece of technology. If you open a word doc and ask to summarize "this document" it has no idea what you're talking about.

@SBF_FTX @realDonaldTrump and next time you steal billions of customer deposits for illiquid investments, bury half of it in the mountains like forrest fenn

S&P 500 hit another ATH yesterday: 7,365 +22.8% since @realDonaldTrump's second inauguration. How about same point in Biden’s term? +7.0%

@SBF_FTX @realDonaldTrump try bribery instead it's way more effective

@ArmsGarrett awesome answer sir!!

Theoretically huge strategic value, but not sure it would ever happen. Section 382 limitations muddy waters a bit, but it would be an interesting move for Waymo (if it became standalone profitable) to just buy Lyft. Lyft is sitting at a $4.4b EV & has north of $2.9b of tax shields tied to NOLs. Waymo just raised at $126 b, so could theoretically acquire for only 3-5% of its enterprise value. Weakens Uber strategically, which it can't buy. Keeps Lyft from playing autonomous suppliers off each other (both Lyft & Uber have close to a dozen autonomous partners already). Accelerates monetization of Lyft's advertising business (ad growth projections: $50 m in 2024 to $400 m in 2027--this alone could be worth a big piece of EV). Massively accelerates distribution: 28m active riders, datasets (billions of origination-destination pairs, demand curves) for optimizing fleet position, regulatory relationships, local operations (think airport integrations), and brand equity have to be worth something. Also speeds up customer acquisition ahead of Tesla rollout. Lyft takes over management of autonomous dispatch fleets (already doing this w/Flexdrive sub—charging, cleaning, maintenance, etc). Plus, you probably still need humans another 10 yrs for demand balancing—if peak traffic is 5x trough, carrying enough AV to cover 100% of rush hour demand is just inherently inefficient (a $100 k vehicle is going to provide 3-4 rides a day?). But Waymo/others may not want Lyft’s tech debt, operating complexity, or other legacy baggage. Also value in remaining platform-neutral and not becoming a full-scale transportation operator. And antitrust might be an issue. But if you’ve won the tech race and the next battle is scaling distribution, operations, and rider adoption faster than competitors, it seems somewhat logical.

$LYFT not cheap? $5.5B mkt cap, $750 M net cash, $4.75B EV. Just guided to 32% EBITDA growth in 2Q ($170M)--under 7x EV/EBITDA, no cash taxes, CAPEX low, buying stock. FCF figs ridiculously high (>$1B), but include stock-comp ($350M) & insurance reserves. Claim YOY share ↑(lie?)

shoulda bought some goog diller!