4Q25 Investor Letter
“We invest with the mentality that we are managing a total set of our and our partner’s wealth. We believe this is the only way that the risk appetite of Dawnlight Capital and that of Yours Truly - are one. Such a mentality has little to do with how much money we manage, but is pretty much like the mentality of professional poker players going into each game with different buy-in requirements.
When viewing risks in totality, risk is on the same side of return - when you buy something cheap, not only is your margin of safety higher, but also your potential returns.
I was recently called a “deep value” investor by one of my friends and I don’t blame him for tagging me. Mark Leonard of Constellation Software and the Rales brothers of Danaher generated high returns of capital by being a “deep value” investor for a long enough time (Leonard buys companies at <1 EV/sales and Rales brothers buy at 5x< EV/EBITDA). Constellation Software and Danaher are the only assets they own, so this naturally coincides with their individual risk appetites.”