Speaker unverified: belief

Transcript context

…It's so hard to do. It's so hard to do. I thought about this a lot. This is actually part of our process where we're forced to do it, which is really helpful, because otherwise it's harder to look at the stock and buy more. We're saying we're making this explicit decision, that we're gonna take this from 150 basis point position to 250 basis points. We're going to end capital because this business has structurally changed and actually belongs in the resilient bucket of the portfolio. There are companies that we've done that where they're honestly just more mature or they're becoming more of a platform. You can actually see the network effect starting to hit and honestly, some of that evaluation conversation also shows there are plenty of platform companies we might want to own in the resilience of the portfolio. But in the current market environment, they're treating valuations that we would not consider resilient. So that's another reason we would own them as optional positions. It's a really good question. I think what we try to do is not make sure that an optional position ends up in the head of the portfolio, because that's something we've just learned the hard way. If you have a stock that can have a 50%–70% drawdown, the starting point is a 5% position, not only is the crusher performance but then you're also probably hamster on. We've got a stock, that's still a relatively big position, and you don't really want to add to it. Then you just fit that take your licking. That's something that we've learned through experience. I'm wondering if even just thinking about this past two year COVID cycle, you've seen this happen. The stocks that were huge multiverse winners in the beginning, the Pelotons, the Zooms and the like. I'm thinking of Zoom. Zoom went from, I don't know what $70–$80 a share to $600 a share, and then back down to, I think it's at $280 right now. You've seen this happen, right? The optionality played out. That was correct, but then returns pulled back.…

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