Hamilton Helmer

And if it has neither the same skills nor the same need, I just call that pure diversification.

And rarely does that work.

That's a very high-risk proposition.

You're basically creating a new business, something you don't know how to do at all.

The skills of your company.

So what your engineers know how to do, what your salespeople know how to do, all those sorts of things.

And as a big company, you have all the agency problems of trying to get something off the ground with a lot of bureaucracy and everything else.

Right.

There's some advantages, but there's more disadvantages.

Right.

There's probably more disadvantages than advantages.

And data supports that, that unrelated diversification is typically not a great thing to do.

You got it.

Right.

And then if you look at the upper left, which is it's the same need.

but different set of skills, you can call that reinvention.

And sometimes you're forced to do that, but the opportunity set isn't that great, really.

It's not like you're opening up the whole world to opportunities.

And so those are pretty rare.

It does happen.