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Sidecar Capital

@sidecarcap

11 Feb

@chriswmayer

Re-read “100 Baggers” by @chriswmayer and an early theme is to “buy well”.

Investors emphasize valuation which is part, but not all, that buying well entails.

This is what the world was like during my solid buys; for the best buys multiple factors were in play.

2/ Obvious, but the market was down. As a result headlines were pessimistic and investors were focused on macro issues.

The proverbial baby had been thrown out with the bath water.

3/ The business was investing through the income statement, depressing margins.

Investors were losing their patience which created a coiled spring. Once the company’s investments paid off profits grew as did the valuation multiples.

Read 8 tweets

Sidecar Capital

@sidecarcap

23 Jan

@nntaleb

1/ There are lots of quality companies, but few are what @nntaleb calls antifragile.

Imagine a box. When shaken the contents are not only protected but grow stronger. Antifragile businesses benefit from volatility.

I want to own these.

2/ What are the characteristics of an anti-fragile business?

3/ It is appropriately financed. It can be levered but debt must be structured in a way that it can’t be called at inopportune times.

Long maturities and non-recourse debt create layers of protection.

Read 8 tweets

Sidecar Capital

@sidecarcap

23 Sep 20

1/ Bezos wasn’t speaking of investment managers here but may as well have been.

2/ “Good process serves you so you can serve customers. But if you’re not watchful, the process can become the thing.”

3/ “This can happen very easily in large organizations. The process becomes the proxy for the result you want. You stop looking at outcomes and just make sure you’re doing the process right.”

Read 6 tweets

Sidecar Capital

@sidecarcap

1 Sep 20

@peterthiel

1/ Thoughts on portfolio management from @peterthiel

2/ “...every single company in a good venture portfolio must have the potential to succeed at vast scale”

3/ “If you focus on diversification instead of single-minded pursuit of the very few companies that can become overwhelmingly valuable, you’ll miss those rare companies in the first place”

Read 4 tweets

Sidecar Capital

@sidecarcap

7 Aug 20

1/ A thread on Sidecar Investing, or “free riding on the superior capability of others” -Richard Zeckhauser

2/ For passive shareholders, Sidecar Investing has been one of the only strategies that creates the possibility (though far from an assurance) of obtaining fantastic wealth. Not just retiring comfortably, but earning life changing returns.

3/ The common thread is partnering with exceptional people that eat their own cooking. Not smart people, or class valedictorians, but 10-100x people that are just wired differently than most.

Read 17 tweets

Sidecar Capital

@sidecarcap

4 Aug 20

1/ In the spirit of a remix, I have been meaning to put together a list of the big foundational ideas - the mental tools that have helped me make sense of the investment world.

Which ideas have had the biggest impact on how you invest?

@morganhousel

2/ 99% of investment information is a “sugar high”.

This piece by @morganhousel does an excellent job differentiating the 1%.

collaborativefund.com/blog/expiring-…

3/ Taleb - Skin in the game. It doesn’t guarantee success, but does ensure the people in charge feel the pain of being wrong. This is the foundation of aligning interests and better decision-making.

amazon.com/Skin-Game-Hidd…

Read 21 tweets

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