Investment Thesis so stupid it's smart

by an member

1 year ago

		Search Funds will often pass on a deal that isn't "perfect"
- I reach out to you and ask if I can take a look at any deals you pass on.
- Thankfully you just did all my homework.
- I'll take a look at the passed deals + the DD, and then make a deal happen anyway.
- My investors may not get the "best" deals, but they'll get "good" deals that may even turn out to be a "great" deal
- Especially true if it weren't for your short-sightedness of needing to make a perfect deal happen.

How stupid (or smart) is this approach?


		

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searcher from Virginia Polytechnic Institute and State University (Virginia Tech)

I wouldn't call it an investment thesis, but it's reasonable. Just because someone passed doesn't mean it's not a great deal. We frequently pass on good deals because they either aren't in our strike zone (e.g. too small or not sufficient alignment with the rest of the portfolio), or, more recently, because we already have more than we can handle. We try to help out friends by passing along the contact to see if they'd be interested in the deal. You can often eat very well off of someone else's table scraps.

1 year ago | like reply | 0 likes

member from University of Rochester

I think it is subjective

1 year ago | like reply | 0 likes

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