Hunting Investments Versus Foraging for Deals

Around the LEV office we like to differentiate between “hunting” and “foraging.”  What does that mean?  How can it help your approach to finding great companies that meet your investment criteria?  Also, what makes our thesis different and difficult to follow? For the management of LEV’s investment fund, we are charged with locating great companies Read more about Hunting Investments Versus Foraging for Deals[…]

The LEV Library

Updated on January 5, 2019 by Daryl Starr The first room in the LEV office has three, floor-to-ceiling walls of built-in bookshelves.  The other wall has windows.  Rather than have the bookshelves ripped out and replaced with a single Amazon Kindle, we decided to populate the shelves with books (and other trinkets.) If you want Read more about The LEV Library[…]

Protect Your Priors – Turn off the News

Watching the news is dangerous to your decision making. Protecting your “priors” is all about making sure you are working from a sound set of base data. Many people have a fear of flying.  Why?  Because an airplane crash makes for terrific news coverage.  It also makes for a great action movie. The more airplane Read more about Protect Your Priors – Turn off the News[…]

Capital Allocation is About Alternatives

I once had a large and successful farmer ask me, “What is better than owning farmland?” Caught in the moment, I did not have an alternative answer for him.  Farm ground was appreciating rapidly (12%+/year), as was year to year earnings (6%+ ROA.)  This was especially true for the profit oriented professional operator at the Read more about Capital Allocation is About Alternatives[…]

Market Transfers Value from Traders to Owners

We are not “traders.”  Although we buy and sell, we are fundamentally business owners.  In practice, what does that mean? Business owners start, buy and hold companies that they expect to increase in value.  Value increases as the result of increased income (or the expectation of future increases in earnings.)   Income increases by improving Read more about Market Transfers Value from Traders to Owners[…]

Harvesting Optionality

There are a number of factors that go into determining whether or not you should invest in something.  Foremost is the probability of a positive return.  According to William Poundstone in the book Fortune’s Formula a “bet” with a negative probable return is called gambling.  The house will win in the long run. Little Engine Ventures (LEV) Read more about Harvesting Optionality[…]