Hey Schwar, curious your thoughts on the small cap businesses being more ideal for growth. I feel like over the more recent history (say 10 years or so) more large cap stocks have become mega cap stocks versus small cap stocks growing to be large cap. I don’t have any data on that just a rough draft observation. Thoughts?
Hi Matthew, sorry for taking a while to respond. Over the last decade, we’ve definitely seen an increase in the “winner-takes-all” dynamic, something Nassim Taleb touches on—how network effects, scalability, and global markets allow success to snowball for larger companies. That said, the simple math of small caps with more runway for growth still holds true. That’s why, as we mentioned, the size of the companies we look for is very flexible and doesn’t stop us from picking up asymmetric opportunities.
Hey Schwar, curious your thoughts on the small cap businesses being more ideal for growth. I feel like over the more recent history (say 10 years or so) more large cap stocks have become mega cap stocks versus small cap stocks growing to be large cap. I don’t have any data on that just a rough draft observation. Thoughts?
Hi Matthew, sorry for taking a while to respond. Over the last decade, we’ve definitely seen an increase in the “winner-takes-all” dynamic, something Nassim Taleb touches on—how network effects, scalability, and global markets allow success to snowball for larger companies. That said, the simple math of small caps with more runway for growth still holds true. That’s why, as we mentioned, the size of the companies we look for is very flexible and doesn’t stop us from picking up asymmetric opportunities.