Speaker unverified: belief

Transcript context

…The other thing that hit me of course was a company's not going to have half their employees sitting around doing nothing. Just as a fun thought experiment, what if a company only was growing at half the growth rate of a high-growth company, but it's a marathon, not a sprint? They could do that over 40–50 years, instead of thinking in these 5- and 10-year time horizons. Do you have any good anecdotes on, ‘I know you have this firm belief that hyper growth is bad and actually slow. Very long-term compounding growth is the real Holy Grail’? I think what we're generally looking for is, we kind of use Groupon as an example, whether that's fair or unfair. We're not looking for the next company to hit X revenue run rate in the shortest period of time, or whatever it is. We're really looking for this durable resilient growth. I think that the way you framed it, Ben, that if the company does have employees that aren't driving the, I guess level of growth that you'd be seeing in a hyper growth firm, that's okay as long as it's hyper durable. 13:40], or kind of like some of the classic iconic growth companies that have compounded for decades. That's generally where you see the compounding. Obviously, you compound at 10%–12% a year—we're in the teens—but you can do it for 10, 20, 30, 40 years, and you can just get tremendous value creation. Some companies in the portfolio we admire that do that will be someone like Texas Instruments where they have a really decentralized culture and they actually push responsibility decision-making down into the deeper parts of the organization. The CEO is not really a manager. He's a capital allocator. He almost has to think more like an investor and a portfolio manager than an operator. I think that's what we really look for is companies that can provide this durable growth. Again, it's very Buffett-like. We're hopefully finding companies where you can set it and forget it, and they're going to put up moderate to healthy growth for 10, 20, 30 years. In our framework, which we can talk about around resilience and optionality, that's what we're looking for in a resilient bucket of portfolios, these companies that can really compound at a healthy rate for a very long time. You guys have these two concepts and then one kind of super concept that combines both of them of resilience and optionality that you look for in investing. Neither those are terms that most investors are familiar with. Can you define what you mean by both of them? Maybe give a few examples of companies?…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.