July 20, 2022
Gustaf: Hey Will, tomorrow you are releasing 50X’s second podcast episode in your series on TransDigm. It covers Nick Howley’s impressive achievement of returning 1,750x the original equity injection over c. 30 years.
Beyond Howley’s cheerful, no-nonsense personality, I particularly enjoyed how their high return hurdle actually gets enforced. And how he refuses to “understand” fixed from variable costs (seemingly self-fulfilling in downturns).
The audio is but one piece of your research on remarkable capital allocators – a natural extension of your book The Outsiders. And you carry out this exercise with Compounding Labs, a spawner of long-term holding companies. But let's hear from you. What is the 50X project?
Will Thorndike: 50X is a natural extension of our investing activity at Compounding Labs. As we build companies over multiple decades, we believe a relentless focus on equity efficiency and ruthlessly pragmatic resource allocation maximize long-term value creation. We rigorously study companies both to hone our approach and because we simply enjoy it.
Gustaf: How can business owners and young talent get in contact with you?
Gustaf: Will, thanks for the effort you are putting into this content. I look forward to following Compounding Labs for decades to come.
Will: Thank you, Gustaf. It’s been a pleasure to get to know you and I appreciate your time.
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