A stock is not merely a tradable piece of paper purchased in the hope of making a quick profit; it represents a fractional ownership interest in a real, operating business. When we acquire shares, we are, in a very real sense, becoming partial owners of the entire enterprise. Viewed through that lens, our analysis is rigorously centered on understanding the company’s underlying economics and day-to-day operations, evaluating the business as a long-term owner would rather than as a short-term trader.
A small business owner does not monitor the value of their enterprise on a daily basis, nor does a homeowner track the minute-by-minute fluctuations in the price of their home. In the same spirit, we view daily market movements primarily as potential opportunities rather than as signals of intrinsic change. Our assessment of quarterly results is therefore framed by a single, overriding question: how do these developments affect the company’s normalized earning power over the next three to five years?
An additional advantage of this long-term orientation is the depth of insight it affords. Over extended holding periods, we develop a thorough understanding of management teams and their decision-making processes. In select circumstances, this familiarity evolves into a more active role, including serving on the boards of companies in which we are invested, further aligning our interests with those of long-term owners.
We seek to identify and research companies with:
A business model we can understand.
A competitive advantage.
A star management team.
A conservatively balance sheet.
A price far below intrinsic value.
Such opportunities arise infrequently, and as a result we may make fewer than one new investment in a given year. Our discipline reflects a fundamental distinction: we are investors, not speculators. BlackBird does not attempt to forecast market movements or express views on macroeconomic conditions. Instead, we focus exclusively on identifying a small number of exceptional businesses where intrinsic value materially exceeds the price at which they are available.
We believe true partnership begins with genuine alignment of interests. We invest alongside our partners, so when we succeed, our partners succeed—and just as importantly, when outcomes fall short, we share fully in those results. In that spirit, Judah Spinner, CFA, our Founder, has more than 90% of his net worth invested in BlackBird.
This level of personal commitment ensures a direct and enduring alignment between Mr. Spinner and the clients who have entrusted us with their hard-earned capital. Our incentive structure is deliberately designed so that our decisions reflect the same care, discipline, and long-term perspective we apply to our own capital. We quite literally eat our own cooking.
