Speaker unverified: belief

Transcript context

…That's the second point I'm curious about is what are some guardrails that you have in the internal culture to reward non-conviction? To reward like, yeah, I don't know, but it could work. And if it does, it could be really big. Here's why it could be really big. We think investing is inherently a team sport. It's a terrible solo sport for the most part. The way we view team is our role is calling out bias in each other. Now, these are uncomfortable conversations because nobody likes to get the bias called out. We all know that bias is really easy to identify in other people and really difficult to identify in yourself. So by opening yourself up to having been called out, then your probabilities go up as an investor. It feels unnatural to us at this point to say, I have super huge conviction that this micro cap stock is going to rule the world my day. That would feel really odd. Everybody is like, are you okay? Are you feeling all right? I think the way we've also set it up with our framework is we just inherently expect failure. I think more than other public markets investors might like if we put something in the optionality to the portfolio. By the way, that half the portfolio turns over a lot more quickly than the resilient product portfolio, which makes sense. We are going to be wrong a lot. Luckily, there are more positions, so you're not going to torpedo the portfolio, as long as the most important thing to do is just admit you're wrong and move on. I think building that into a culture where it's okay to be wrong and move on and fail quickly versus string ourselves along on a three-year journey in a tough position. That's one cultural way that we've architected the way that the team works together that has really helped. It basically gives yourself a license to take some risks that maybe you otherwise wouldn't take if you were sitting on a different team or within a different organization. Do you try and document, ‘here's the reasons why I'm making this optionality bet, so you can decide to rotate it out of the portfolio if those reasons are no longer true’?…

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