Finding The 1% of Stocks That Matter | Henry Ellenbogen Interview

In this episode, Patrick interviews Henry Ellenbogen, founder of Durable Capital Partners. Henry shares his investment philosophy of finding the 1% of companies that become long-term compounders, growing 6x over 10 years. He discusses "Act Two" entrepreneurs who leverage previous experience to build better companies, the importance of studying business history, and how AI represents a transformative shift comparable to the internet. Henry explains Durable's unique approach of investing in companies from private stages through public markets, their focus on people and change, and why going public can benefit growing companies. The conversation covers market structure changes, competitive advantages, team building, and Henry's belief in balancing growth, profitability, and innovation for sustainable success.

TIMESTAMPS:
00:00 Intro
03:02 Origin of an Investment Philosophy
07:02 The "One Percent" of Stocks
13:17 Domino's
19:10 Betting on "Act Two" Teams
24:31 Building Durable Capital
34:46 Market Structure and Time Arbitrage
52:49 Adapting to Discontinuous Change
1:03:19 Physical Moats vs. Soft Moats
1:11:52 The End of Free Money
1:37:35 The Argument for Going Public
1:46:43 The "Warriors" Mindset
1:51:17 Kindest Thing

#investing #venturecapital #compounding #entrepreneurs #AI #publicmarkets #privateequity #businessstrategy #marketanalysis #durablecapital


Presented by Ramp:
https://ramp.com/invest

Sponsored by AlphaSense and Ridgeline:
https://www.alpha-sense.com/invest/
https://www.ridgelineapps.com/

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Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Positive Sum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc