Finding 10x outliers

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August 18, 2024

by a searcher from University of Melbourne in Melbourne VIC, Australia

The Stanford Search Fund Study data shows that within search there are outliers that skew the mean returns, the 10x outliers if you will.

Is there a quick way to find out which companies these outliers are, in order to dig into their stories and study them? If not, has someone got a list of the high return search fund outcomes they can share?

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commentor profile
Reply by a searcher
from Universidad Internacional del Ecuador in Cuenca, Ecuador
Hey Jackson, haven't looked into their startegies but I'm willing to bet they either 1) successfully executed a roll up startegy, or 2) acquired a company that had substantial upside that wasn't being exploited by the owner, for example a manufacturing company that's only working one shift when demand can accomodate 2 or 3 shifts (ie. double or triple production, selling pretty much to the same customers)
commentor profile
Reply by an investor
from McGill University in San Diego, CA, USA
https://jimsteinsharpe.com/case-histories/
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