Turning over the most rocks

One of the things I love about investing is you have to be naturally curious.

Curious to learn about new businesses, industries, and opportunities.

I’d go as far as saying that curiosity, or willingness to turn over many rocks, is a necessity if you want to outperform as an investor.

Why?

1) Markets are generally efficient. Great opportunities are rare. There is a lot of capital out there and a ton of smart people looking at the same opportunities. This makes asset prices generally (though not completely) efficient. So if the market is 99% efficient, that means you have to turn over 100 rocks just to find 1 attractive opportunity.

2) Pattern recognition. The more opportunities you look at, the more patterns you start to notice and the better you get at seeing an outlier. It’s like a muscle, you get stronger and build your ability with more reps & sets.

3) Information Edge. As you build your knowledge bank on various businesses and industries, you start to build an information edge over average investors. If you’re looking at a potential opportunity and have studied the industry before, you may have an upper hand or a differentiated perspective.

All that said, turning over rocks doesn’t mean taking any action.

It just means constantly sourcing ideas/deals, assessing opportunities, and continuing to build your knowledge bank.

Honestly, this is the part of the job we simply love. Learning and understanding businesses. What makes them tick, what’s their competitive advantage, how much cash they generate.

Turning over rocks can be seen as a chore.

To us, it’s play.

If you’re a business owner interested in working with us, or an intermediary with a deal to share, we’d love to hear from you.

About Arbor Permanent Owners

Arbor Permanent Owners is a Serial Acquirer holding company that acquires and invests in exceptional, private businesses, deliberately built for long-term success. Our goal is to be the long-term custodian and permanent home of Great Australian Small and Medium Enterprises (SMMEs).

We are actively looking for businesses with the following characteristics:

• Business Model: B2B industrials: manufacturing and mission critical services

• Business Size: $3 to $6 Million of EBITDA

• Business Profile: Sticky B2B customer base

• Business HQ: Australia