Durable Value Ep 83 - Detachment vs Conviction in Investing

In this episode of Durable Value, we dive deep into one of the greatest paradoxes in investing: the tension between detachment and conviction. How do you balance making data-driven, unemotional decisions with the need to act decisively and believe in your thesis? Join us as we explore real-world examples, investment committee dynamics, and the strategies that set world-class investors apart.

Timestamps:
00:00 – Introduction: The Paradox of Detachment vs. Conviction
00:24 – Defining Detachment and Conviction in Investing
00:47 – Risk, Conservatism, and the Two Schools of Thought
01:42 – The Power of Conviction and Attribute Scoring
03:13 – Data-Driven Decision Making vs. Gut Instinct
05:14 – Investment Committee: Balancing Conviction and Detachment
07:17 – The Reverse Funnel: Creating Opportunities
08:07 – Avoiding Auctions and Broker Funnels
09:14 – Building a Network for Inbound Deals
12:06 – The Ferris Wheel: Managing Multiple Offers
13:52 – Discomfort and Optionality in Deal-Making
15:32 – The Key to Success: Detachment Creates Conviction
16:53 – Acting Decisively and the Value of Detachment

Chapters

• 0:00 Introduction: The Paradox of Detachment vs. Conviction
• 0:23 Defining Detachment and Conviction in Investing
• 0:46 Risk, Conservatism, and the Two Schools of Thought
• 1:41 The Power of Conviction and Attribute Scoring
• 3:12 Data-Driven Decision Making vs. Gut Instinct
• 5:13 Investment Committee: Balancing Conviction and Detachment
• 7:16 The Reverse Funnel: Creating Opportunities
• 8:06 Avoiding Auctions and Broker Funnels
• 9:13 Building a Network for Inbound Deals
• 12:05 The Ferris Wheel: Managing Multiple Offers
• 13:51 Discomfort and Optionality in Deal-Making