Conviction.
Patience. Partnership.
Understanding before conviction.
Spitrock Capital, LLC focuses on a limited number of public companies where careful research can develop a differentiated understanding of long-term business value. We seek situations where market expectations diverge from our assessment of earnings power, business durability or strategic opportunity.
Conviction begins with understanding what the current price assumes. Our research examines the drivers of value, considers alternative outcomes and identifies the evidence that would strengthen or weaken the investment thesis. A compelling business is not automatically a compelling investment; price remains central.
Concentration must be earned through depth of understanding. We focus our attention on ideas we can articulate, monitor and challenge, with explicit consideration of downside risk. New evidence can change the thesis, and our approach must remain open to that possibility.
We are not benchmark driven. Capital allocation reflects conviction, potential return, downside exposure and the opportunity cost of competing ideas. When attractive opportunities are scarce, holding cash preserves flexibility.
Building for the long term.
Spitrock is currently in an early stage, with participation limited to friends and family, and is not presently soliciting outside capital. Our ambition is to build a broader investment firm: deepen our research capabilities, expand into additional asset classes as our expertise and infrastructure develop, and pursue outside capital when the firm is positioned to do so.
As we grow, we intend to preserve close relationships with those who supported Spitrock from the beginning. Our early partners are part of the firm’s foundation, and we want that contribution to remain recognized as the business evolves.
“I see my early investors as partners in building this business from day one. I intend to honor that trust.”Beck Spitler, Founder
“Diversification is a protection against ignorance.”Warren Buffett
“This just in: You can’t take the same actions as everyone else and expect to outperform.”Howard Marks
“The trick is to find a few things that are good and concentrate on them. That's where the big money is.”Attributed to Charlie Munger
“You can't get rich by diversifying. If you have 40 stocks, you're just tracking the index. You're better off owning an index fund.”Attributed to Mark Cuban