Thread by @compound100x

Long thread ⬇️
1. Businesses are organic. Like humans they grow, mature, age. The best performing humans achieve success via nurture + nature. The nurture aspect involves perfecting your craft via hardwork and deliberate learning process. The nature aspect caps the ceiling.

2. Businesses are similar in that some are simply born better than others. Some have bone structures that only allow them to add so much muscle. Sure, smart M&A can extend the length of the limbs, but stupid ones can also add a leg that wants to walk a different direction from

3. the body, slowing the whole system from competing bodies walking faster with 2 legs with more muscle instead of having a third leg. But the beauty of businesses that is superior to organic humans are that they can be immortals if they choose. Cells age, we die. But well

4. managed businesses can switch out the dead cells and put in new ones with stronger potential to grow muscles & bones. Still, nature puts a cap on e ceiling a business can reach tt is down to DNA, just like it does on humans. Some like Amazon, has potential to grow 100m tall

5. and build muscles a 100MT strong . Others, like Hermes will always be constrained to a niche. Like how bio work on DNA increasingly inform us on the path of each human, analysing DNA of businesses can provide insights to where the business can or will go, how high and strong

6. it can or will grow. So focus on studying the DNA in the form of founder culture/vision/mission (brain), the business model (structure and composition of the “body”), the sales/marketing/manufacturing/R&D (execution at each limb/organ) that determines the efficiency of

7. interaction of the whole system with the external environment. When we step back, the best business shouldn’t look too different from the best athletes, with a thousand interacting variables each combining to help the body excel in an environment. Finally, these athletes

8. have names and the best like Jordan turns into a brand. Like humans who develop reputations (brand), businesses build a brand, consciously or subconsciously. The brand is the result of a thousand action across the business, all of which leads back to the DNA, again not

9. unlike how a human reputation is developed. A strong reputation human keeps getting ahead in life, same goes for a business with strong brand. Ultimately, DNA is e 1st principle, it drives everything, tt eventually leads to a brand/reputation.

Random thoughts, thx for reading

Think you guys were discussing whether brand is a moat some time back. Approaching it from another angle here. @nachkari @Fritz844 @trengriffin @BluegrassCap @PythiaR @east_cap