Sidecar Investor

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

If business model is more important than management, who is it nurturing or knee-capping the business model?

Second this.

The greatest advantage with Sidecar Investing is you only have to get one thing right: Management And it can pay off for decades.

Investors should study Jay Hennick. Suspect most don’t even know his name.

Not interrupting compounding is a Herculean task. It goes against human nature then the investment industry throws gas on the fire. The only thing I’ve found that works is just committing to being a loyal shareholder knowing it’s going to look foolish from time to time.

The bad news is exceptional CEOs are incredibly rare. The good news is they are often idiosyncratic and misunderstood. An alert investor learns what turns others away is what should draw them in.

“I’d rather use a track record of consistently happy and loyal customers and employees to judge a team. That strikes me as a far better predictor of future performance than psychometric questionnaires or dowsing for cultural fit.”

The biggest returns will be generated by talented people tackling tough problems.

Most investors in the 1930s bought "mature" companies. Established businesses with steady dividends and predictable earnings. Price saw the flaw: these companies had already done most of their growing. He wanted companies just starting their expansion.

Investors often get disoriented during inflection points. The key is remembering prices (individual stocks and indexes) rip higher when sentiment goes from bad to less bad, not bad to good.

Had a nice time talking a range of investment topics with @Invesquotes. This platform’s ability to connect people from all over the globe amazes me.

Mentally letting go of short term performance is one of the best investment hacks. 99% of activity seems tied to hyperventilating over some temporary issue, usually outside management’s control.

There are many management teams that say they do opportunistic buybacks; few actually do opportunistic buybacks. $MEDP is the latter.

One of the most common orange flags I come across when assessing a CEO is a lack of candor. I was watching a recent interview and while the words were technically right, it all felt performative — a little off — though I couldn’t quite put my finger on it. Then he pulled out a…

Bob Kierlin are Steve Slaggie are the founders most closely tied to Fastenal $FAST and it appears they did a lot of the heavy lifting. But I find three others more intriguing - Michael Gostomski, Jack Remick, and Henry McConnon. Each put up 5-10%. By all accounts they were…