Cliff Sosin

The world threw three once-in-a-generation curveballs at these guys at the same time while they were having all kinds of internal problems that don't happen that often. And they added debt and whatever at the same time. And they did it. They got through it. So it turns out it really was that stout. But had it not been that stout, had these sort of advantages been –

The world threw three once-in-a-generation curveballs at these guys at the same time while they were having all kinds of internal problems that don't happen that often. And they added debt and whatever at the same time. And they did it. They got through it. So it turns out it really was that stout. But had it not been that stout, had these sort of advantages been –

If this business all grown up and super great was a 5% margin business and not like a 13 or 14% margin business, I'm not sure they'd have had the wherewithal to make it. So I have a greater, like my sort of just my reaction to companies where, yeah, like it works, but there's just consumer surplus isn't that much and the advantage isn't that big, but like pencils, it's just kind of like move on.

If this business all grown up and super great was a 5% margin business and not like a 13 or 14% margin business, I'm not sure they'd have had the wherewithal to make it. So I have a greater, like my sort of just my reaction to companies where, yeah, like it works, but there's just consumer surplus isn't that much and the advantage isn't that big, but like pencils, it's just kind of like move on.

Yeah.

Yeah.

It's made me re-question that. Well, I think on the one hand, you know, one of the things that I have said to people who've asked me about this is sort of like the lessons from this period are... important, but it's a teaspoon of medicine, not the whole bottle. So on the margin, I'm less interested in loss-making companies, but I'm not excluding them.

It's made me re-question that. Well, I think on the one hand, you know, one of the things that I have said to people who've asked me about this is sort of like the lessons from this period are... important, but it's a teaspoon of medicine, not the whole bottle. So on the margin, I'm less interested in loss-making companies, but I'm not excluding them.

On the margin, I think there's probably room to be a little more diversified. But, you know, like we've had a lot of success over the whole history of the fund up to through and including, you know, this period, that success was because of how we did things. And if I were to

On the margin, I think there's probably room to be a little more diversified. But, you know, like we've had a lot of success over the whole history of the fund up to through and including, you know, this period, that success was because of how we did things. And if I were to

have thrown out the concentration over the whole life, I think we come out in a worse place, albeit maybe with less volatility. And so the lesson is, yeah, on the margin, there's room to be more diversified probably, especially if you factor in the idea that you might have some companies that are less stout. But a teaspoon of medicine, not the whole bottle.

have thrown out the concentration over the whole life, I think we come out in a worse place, albeit maybe with less volatility. And so the lesson is, yeah, on the margin, there's room to be more diversified probably, especially if you factor in the idea that you might have some companies that are less stout. But a teaspoon of medicine, not the whole bottle.

Yeah, you should ask someone really smart about that. And here we are. I'll tell you a few thoughts on artificial intelligence that are super narrow because, you know, some world is big and complicated. And, you know, I think maybe one of the lessons of 2022 is that you don't know a lot. I find this super helpful. I use various AIs every day.

Yeah, you should ask someone really smart about that. And here we are. I'll tell you a few thoughts on artificial intelligence that are super narrow because, you know, some world is big and complicated. And, you know, I think maybe one of the lessons of 2022 is that you don't know a lot. I find this super helpful. I use various AIs every day.

You know, in particular for businesses where there's a lot of information on the Internet. Right. So if you're studying Medicare Advantage or Medicaid managed care companies, you know, let's take Medicaid managed care. There's think tanks and government reports and RFPs. And you could fill a room with the materials that are on the internet and you can't possibly read all of it.

You know, in particular for businesses where there's a lot of information on the Internet. Right. So if you're studying Medicare Advantage or Medicaid managed care companies, you know, let's take Medicaid managed care. There's think tanks and government reports and RFPs. And you could fill a room with the materials that are on the internet and you can't possibly read all of it.

And most of it's kind of boring anyway. But these things can. And so then you can ask it questions like, okay, who won... you know, the RFPs, did the incumbent win or did the entrant win for Medicaid RFPs in the last 50 RFPs by state? And like, what were the major qualitative factors identified in the, you know, decision that like drove each one, make me a table, right?

And most of it's kind of boring anyway. But these things can. And so then you can ask it questions like, okay, who won... you know, the RFPs, did the incumbent win or did the entrant win for Medicaid RFPs in the last 50 RFPs by state? And like, what were the major qualitative factors identified in the, you know, decision that like drove each one, make me a table, right?

And that's a ton of work and, you know, it takes two seconds with an AI. So I think that in the playing field of life, it advantages someone like me who works, you you know, fairly independently. I don't have like a giant team in investing. Um, you know, as to whether these, like right now, an enormous amount of information is not in the internet, right?

And that's a ton of work and, you know, it takes two seconds with an AI. So I think that in the playing field of life, it advantages someone like me who works, you you know, fairly independently. I don't have like a giant team in investing. Um, you know, as to whether these, like right now, an enormous amount of information is not in the internet, right?