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The Keystone
Picture an arch. One stone at the top, the keystone, holds the whole structure together. For one investor, the keystone is judgment, and judgment is hard to discern when you are removed from the source. When a tool like an LLM contextualizes something, there is a chance to lose the connection to the original material.
A Three-Person Team
That is why his fund is built around a three-member investment team. The small size means everyone reads the source material together and reaches conclusions about a business's quality and valuation by touching it directly. Nobody outsources a reading to a sector analyst.
Trusting an Operator
The same applies when you hand your money to someone. Allocating capital means trusting that their judgment will stay well-founded, so the decision comes down to whether the operator will act in a trustworthy way and whether you respect their judgment.
Why does retelling distort the original?
Psychologist Frederic Bartlett had people read a Native American folk tale and then retell it from memory in repeated rounds, a study he reported in his 1932 book Remembering. With each retelling the story grew shorter, and details were dropped or reshaped to fit the retellers' own expectations. Bartlett concluded that memory reconstructs the past instead of replaying it.
Why do small teams communicate better?
Fred Brooks noted in The Mythical Man-Month in 1975 that communication channels grow with the square of team size. A team of three has three channels between people, and a team of ten has forty-five. The number of channels in a team of n people is n times n minus one, divided by two.
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