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We took a bit longer than normal writing our quarterly letter for the first quarter of 2020.
- Reporting our performance feels like entering my first confession, and I outline the important psychological effects confessions have;
- My research on the most significant value creators of all-time have revealed a psychological dynamic that we had been ignoring up until February. I briefly discuss the psychological process of value creation;
- We learned our lesson and have accelerated the evolution of our framework to be more empathetic to System 1, the ego, or Mr. Market;
- We discuss why we love CTT, our coinvestment where we’ve been a constructivist for the past year. We are highly encouraged that 2020 will be a year of major transformation as it leads the the digitalization of commerce in the country;
- Customer satisfaction is the most important driver of the sustainability of an investment, and we outline how a newer investment in Peloton (PTON) perfectly exemplifies our definition of sustainability;
- We close with other recent actions taken, and reflect on the performance required for us to keep GreenWood alive in the coming years.
With the moves we’ve seen, the investments we’ve added, and the low-upside shorts we’ve added, we are more encouraged than ever that we can perform in the ensuing months, quarters, and years ahead, no matter what we face.
Original Diagram of the Psychology of Value Creation
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Past performance is no guarantee of future results.