“What you need to look for are the companies that have the chance of being truly exceptional and you shouldn’t spend your time on those that don’t.

Those companies are dominated by both what are unlimited opportunity sets and by management who don’t want to define those limits.”

"The companies that have become truly great over the course of time are dominated by founders/missionary leaders...conventional corporate management is not what you want"

"What you need to be good at is judging management teams and corporate cultures"

-James Anderson of Baillie Gifford from his studies with Hendrik Bessembinder (see thread below)

Once you evaluate potential ideas, ask yourself if this company really forms that top 4%. Very hard to tell, especially earlier in companies' lifecycles. https://twitter.com/richard_chu97/status/1319738236735004674?s=20

Also forming the discipline not to touch weak companies no matter how cheap they may appear.

Business quality > valuation. Do they have visionary management, a durable moat, large TAM, etc?

Very few companies meet my criteria so I am very concentrated: https://twitter.com/richard_chu97/status/1254533832990175232?s=20