What we look for
Businesses durable enough to own forever.
The question is simple — what makes a business durable? Answering it is hard, and most of our work is trying to quantify it. A few of the things we look for:
- A long history. It's been around, and it's survived the calamities that enough time all but guarantees.
- Deep goodwill — earned with employees, customers, and vendors alike.
- A reputation that can't easily be copied.
- A market position strong enough to control its own path — power to be used wisely and judiciously, never at a partner's expense.
- No single point of failure — it can run without one irreplaceable person holding everything together.
- Enough scale — generally $500k+ a year in distributable earnings. A soft line; we'll still consider low-effort businesses below it.
Winning over fifty years means every side wins — employees, customers, vendors, and us. Sometimes that means leaving money on the table. We think of it as buying the next fifty years: goodwill is an insurance policy, and over time it compounds into a stronger position than any short-term gain ever could.