Molson Hart

The key structural benefits I saw - Ability to recycle capital and reinvest at high rates of return - Lower cost of debt as portfolio scales (x-collateralize) - Institutional systems w/ FO time-horizon - Tax-deferred, long-term compounding - Lower trans costs & reinvestment risk

At the time, in casual talks w/ investors, no one was interested. Too long of a hold/no liquidity, my limited track record, unfamiliar model...just couldn't find the right investor fit. Now @PermanentEquity, @chenholdco, others are visible proof-points (though still early).

I apologize for all the financial/PE jargon in this thread. I hate doing that, but given character limits, this was the most concise way of communicating the key points. Takeaways: timing, connections are really important w/ new ideas; w/ good execution & team this idea would

To sharpen my thinking, what haven't I considered or misjudged?

I don’t think you’ve missed this, but you didn’t mention it: What’s the point of investing? Mostly it’s for retirement or to be able to spend it later. If you build a never-sellholding company that’s not publicly traded then you can’t give people that liquidity when they need it

I’m cool with Berkshire Hathaway never selling and never paying me a dividend because I can sell my shares whenever I want. In a never sell or-model, how do I get money back when I want/need it?

Also, my model would still generate 15x on invested capital over 20 years with no exit...but, your point is still valid and the lack of liquidity is a major challenge.