We start with very strong ideas, but moderately held ones, to some degree. Actively seeking disconfirming evidence mitigates the risk of thesis creep. After a position is established, we spend the majority of our time looking to objectively disprove our theses, continuously reassessing the likelihood that business KPI trends and management’s shareholder return initiatives will actually advance the stock to our multi-year target IRRs. It can be tough to see clearly in the fog of war, so taking some steps back throughout the year and conceptualizing how the thesis is evolving over time is important, we find. Maintaining a dispassionate view enables position adjustment if the original thesis shows cracks or, conversely, doing nothing and “getting paid to wait” when we believe consensus opinion has been clouded by transitory factors that will soon dissipate. Portfolio adjustments play a larger role when temporary idiosyncratic dislocations are discovered in the marketplace and to which incremental exposure for us would be uncorrelated to other ideas currently in our book. Managing the steepness of the equity yield curve (remeasuring when will we get paid on an idea) or a sudden need for hedge baskets may also prompt certain adjustments