Joys of Compounding
Episode 28 Lessons from the Eternal Outsider
Joys of Compounding

Episode 28: Lessons from the Eternal Outsider

Joys of Compounding

Episode 28

Lessons from the Eternal Outsider

Will Thorndike is the co-founder of Compounding Labs and the author of The Outsiders. We cover the evolution of the search fund model and other strategies for creating long-term value, why alignment is critical to compounding, and the key insights that helped the "outsiders" become master capital allocators.

Show Notes:

(00:00:00) Welcome to The Joys of Compounding

(00:00:57) Introducing Will Thorndike

(00:03:35) The Rise of Long Duration Serial Acquisition Holding Companies

(00:07:25) The 50X Podcast Journey

(00:16:29) The Origins of Will's Investing Career

(00:18:11) Stanford's Influence and Key Mentors

(00:23:48) The Search Fund Model Explained

(00:39:18) The Outsiders: From Concept to Acclaim

(00:46:33) The Influence of Leverage and Share Buybacks

(00:47:30) Personal Reflections on the Book's Impact

(00:52:54) Experiments in Public Markets: CNX and Perimeter

(00:58:35) The Evolution of Inorganic Growth Models

(01:02:52) The Power of Long-Term Ownership

(01:14:52) The Importance of Relationships and Learning

Lessons from the Eternal Outsider

Introduction

Rick
Our teacher today is Will Thorndike, co-founder of Compounding Labs and author of acclaimed book The Outsiders. This is such a gift for Paul and I to have Will on Joys of Compounding because few, if any, people have had a greater contribution to our combined teaching and investing vocations.

Paul
So we're doing this intro together.

Rick
What the heck are you doing here? I'm the intro guy.

Paul
Not today. In fact, we decided that this one deserves more context and a bit of a preamble given all the ways Will has impacted us. From his transformative ideas, to the companies we're invested in together, to the remarkable people he's brought into our lives, and the students of ours he's helped to shape and mentor, including a few that he's hired at Compounding Labs.

In our opinion, Will has emerged as one of the most influential and innovative investor minds of the past few decades. And if you care about long-term value creation and the art of capital allocation, chances are you've also benefited from some of his ideas. Oh, and we think he may literally be in the midst of creating a whole new asset class. But more on that later.

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