Unlike other conglomerates, CSU doesn't try and harness a bunch of synergies between companies.
Instead, it sits back and lets great managers get to work.
11/
That's part of what makes CSU so special: its culture.
(This is somewhat ironic as Leonard is very skeptical of "corporate culture").
1. Lots of autonomy 2. Focused on long-term results 3. Highly meritocratic
12/
That is a key strength as CSU tries to evolve.
While its current strategy has worked incredibly well, it's hit a wall in terms of the amount of cash it can deploy.
It's a true "champagne problem" β CSU has more money than it can effectively invest.
13/
To try and address that issue, CSU is trying three new things:
1. Lower its hurdle rate 2. Make bigger investments 3. Move beyond VMS (!)
What does that mean?
14/
Basically, CSU is loosening its investment parameters. Now, it'll consider companies that don't meet its traditional criteria either in terms of return profile, size, or sector.
That's a pretty big change.
15/
Everyone should do their own investing research.
But a few things make me bullish about CSU's future despite this uncertainty.
1. Best in class management 2. Proven investing record 3. Still lots of VMS companies to buy 4. VMS space growing rapidly
16/
What does that mean?
Ultimately, I think CSU can continue to grow within the VMS space. And given the impressiveness of management, I think there's every chance they could develop a new sectoral competence.
That could unlock an entirely new wave of growth.
17/
There were some much brighter folks I spoke to as part of this research. (Or read their work).
Last night, the $GENERALIST experiment ended. By the numbers:
1. Raised 20 ETH on @viamirror from supporters 2. Shared 10 ETH w @jackbutcher 3. Shared 5 ETH w S-1 Club contributors 4. Released our coverage 5. Minted 3 NFTs 6. Sold 3 NFTs for combined 28.6 ETH
A few thoughts.
This might be the purest multi-dimension win I've been a part of.
- Writers won by earning ETH for their work.
- Artists won by earning ETH for their art.
- Collectors won by buying meaningful work.
- Supporters won by us selling at 30% profit.
Win/win/win/win.
This has made me rethink value.
At current prices, our work sold for +$59K. That is wild to think about for a report that's free.
Has every S-1 Club been "worth" that amount?
No.
There was combinatorial value created by bringing in new stakeholders and artists.