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

The ideal combination is a genius running a great business.

Antonio is emerging as the Arthur Rock of this era Rock was a founding investor in Intel (along with many other legendary companies) but most impressively he had an active role there for 30 years @AntonioGracias sets the standard for my generation

“Not one in a thousand seriously plans and acts as one must to make a fortune.” Thomas Phelps Investors dream of getting rich. They say the right things about being selective, disciplined and having patience. But their portfolios, and more importantly, their behavior, tell a different story. There is an inconvenient truth: most investors don’t earn big returns because they are not trying to. The problem isn’t intelligence or access to information. It is the gap between what people say and what they do. Most investors seek comfort and social validation. They over-diversify, check stock prices daily or even hourly, and panic when markets fluctuate. To earn outsized returns, you need a strategy that can capture extreme outliers. Investing confidently is a prerequisite. It means having the stomach to hold when a stock declines and 50% drawdowns are not unusual for even great companies. It requires tuning out the noise and accepting large swings in your net worth. It means accepting that you are going to look stupid. And accepting that at times, you are even going to feel stupid. Most investors want the gains but not the discomfort that makes them possible. So they own a little bit of a lot of things and trade too often. This feels rational because they are “doing something” which is usually just oversteering their portfolio or trying to fit into a market environment that is most likely temporary. If you truly want extraordinary results, you must pay the tuition which comes in the form of embracing volatility and accepting social isolation. The first step toward making life-changing money in stocks? Start acting like someone who makes life-changing money in stocks.

This week Artem Fokin of Caro-Kann Capital wrote a great article on a very complex topic. Management Meetings: Access without Attachment microcapclub.com/management-…

Identifying exceptional CEOs doesn't require private investigators, channel checks, or expert network calls. People tell you who they are. Listen to what they say, look at what they've accomplished, and trust your intuition.

The largest shift over my investment career has been the market’s ability to sniff out good business models. Today, you have to be earlier than ever. By the time the strength of the business shows up in the numbers, the big gains have already been made.

I didn’t stick to my resolution to stay positive. Back CEOs who are straight-shooters. They often surprise on the upside.

Maybe it's 20 years of investing, pattern recognition, or just getting older, but I've lost all patience for fancy language and philosopher quotes. When CEOs or investors try too hard to sound smart, it's a bright red flag.

Investing is an attention game and the more time a position consumes, the less likely you are to find your next great idea.

Ken Langone backed a fired 49-year-old without even knowing his business idea that bet returned 621,000% - outperforming Apple by 15 times the company was Home Depot - the #1 performing stock in S&P 500 history - 27% a year for 40 years "is he going to jail? no? good - you can't run a company from jail - we're starting a company" 3,000 kids who started pushing carts in the parking lot are multi-millionaires today a part-time cashier from Jamaica now runs all 1,700 US stores bookmark & watch the full conversation ↓

Investing experience brings clarity to what you are looking for. Eventually, opportunities resonate almost immediately or never. And not knowing where the next idea will come from can be maddening, while looking too hard leads to unforced errors. Waiting for them to find you is best.

“The best founders don’t signal like everyone else, they don’t think like everyone else, and they certainly don’t build like everyone else.”

Who is the best CEO few people are talking about?

Opportunity cost is one of the most difficult investment ideas to internalize - and one of the most valuable.

Why do individual investors or small funds buy mega cap stocks? Thousands of investors are looking at those companies, and you have no advantage there. Look for ‘hidden gems’ where your smaller size works in your favor.

10.4 miles, 3300 vertical feet. Nothing clears the mind like spending time in nature.