Subscriber Update

A few changes in the interest of longevity

I started this newsletter two years ago in my senior year of college. My first post was a recycled stock pitch from several months earlier. I didn’t think much about the details initially — I figured I would just throw some ideas out there — but as this venture grows, the details matter more.

I want to create something that adds value to the reader and the author. Today, I’m introducing a few changes that should support that end.

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Writing is a critical component of my investment process, and I’m convinced it is one of the most powerful and underutilized tools at any investor’s disposal. The brutal process of putting pen to paper exposes gaps in your reasoning and clarifies your thinking.

It’s no coincidence many of the best investors were (are) such digestible writers; clear writing is clear thinking, and there’s no substitute for clear thinking in investing.

Selfishly, I will always view writing as a means of obtaining better investment results. To that end, there is reason to question the value of publishing a newsletter. Writing can be done just as well in private, and writing in public carries risk.

Taking a public stance can create a psychological attachment that diminishes my willingness to see the other side of any argument. Building an audience can induce decision making influenced by the desire to impress others rather than execute a sound investment process. Over time, this desire for validation can replace a focus on process with concern for pleasing an audience.

Writing a newsletter, even if sporadic, is also a considerable time investment, and it’s not as if there is a shortage of investing content out there. So, where does Unconventional Value fit in? What am I trying to accomplish here?

It’s simple: I think my ideas and experience are unique and worth sharing, that others can find value in them, that gathering feedback is a critical input to the investment process, and that it is the right way to build a network.

The risk is worth taking.

Rather than retreating from the public eye, I have come to believe the best defense is to further integrate the newsletter into my investment process. This demands a more methodical approach, so a few changes are in order.

Starting tomorrow, I will publish three segments: two new, recurring segments, plus the occasional Investment Idea.

Letters (2x a year, in January and July)

Letters will be structured in a similar format to partnership letters. Each edition will include my returns (annually), top holdings, and other relevant thoughts. The first edition arrives tomorrow.

Research Recaps (Monthly)

Recaps will share interesting findings, analysis, and musings from my work in the previous month. These will resemble organized notes with some commentary sprinkled in, and each edition will include discussions of multiple companies.

Note, the details in each Recap may be more timely (not exclusively so), but the insights are meant for a longer shelf life. The first edition arrives January 31.

Investment Ideas (Occasional)

When opportunity knocks (and I feel compelled to write it up), I will continue to share the odd stock pitch for long term investors. These pitches are allegedly “actionable”, though meant to serve as a launchpad for your own research. The performance of previous Investment Ideas can be found here (updated monthly).

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Consider these changes an experiment. As with all things investing, my goal is to optimize for longevity, and I believe this is a structure suitable to how I think and invest — one I can maintain over the long haul.

The revised structure promotes transparency and open sources more of my investment process. My hope is it translates into a better experience for you and a steeper learning curve for me. The faster I learn, the more value I can add.

Thank you for reading. I appreciate the support.

— Tim Gallagher

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