Public serial acquirers like Constellation Software exploit a valuation arbitrage. They buy private niche businesses at low multiples (e.g., 5x EBITDA) which are then automatically revalued at the parent company's much higher public market multiple (e.g., 28x EBITDA), creating significant shareholder value on day one.

Official financial segments often reflect bureaucracy, not true business economics. By creating a 'Shadow P&L' through deductive analysis, investors can uncover massive hidden costs in non-core initiatives, as ValueAct did with Microsoft's hardware divisions.

True understanding of a business often comes only after owning it. Taking a small (e.g., 1%) starter position can initiate the research process and shift your perspective from a casual observer to a critical owner, revealing nuances and risks not apparent from the outside.

John Elkan's development as a leader was profoundly shaped by his decision to hire outsider Sergio Marchionne to save Fiat. Marchionne not only executed a legendary turnaround but also became a personal mentor to Elkan, demonstrating the value of external expertise in guiding the next generation of a family empire.

Portfolio manager Eddie Elfenbein seeks an edge by focusing on high-quality but obscure companies, like tow truck or aircraft part manufacturers. With few or no analysts following them, it's easier to understand the business deeply and identify mispricings before the broader market does.

When Carvana's stock fell 90%+, Thrive evaluated it like a private portfolio company undergoing a restructure, focusing on operational improvements instead of the daily stock price. This private-market framework allowed them to see progress where the public market saw failure, giving them the conviction to double their position at a fraction of the cost.

Companies like Tesla and Oracle achieve massive valuations not through profits, but by capturing the dominant market story, such as becoming an "AI company." Investors should analyze a company's ability to create and own the next compelling narrative.

The best investment deals are not deeply discounted, low-quality items like "unsellable teal crocodile loafers." Instead, they are the rare, high-quality assets that seldom come on sale. For investors, the key is to have the conviction and preparedness to act decisively when these infrequent opportunities appear.

Instead of complaining that its stock trades at a steep discount to its net asset value (NAV), Exor's management pragmatically views this as a chance to invest in themselves. They trimmed their highly appreciated Ferrari stake specifically to fund share buybacks at this significant discount.