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Permanent Equity founder Brent Beshore joins O'Shaughnessy to discuss why boring businesses (HVAC, landscaping, specialty distribution) are the best investments. Low prestige means low competition, stable demand means predictable cash flows, and permanent ownership means aligned incentives.
This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.
Canon
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Beshore explains that the 'permanent' in Permanent Equity generates meaning: knowing that you'll own a business forever and are responsible for its employees' livelihoods creates a depth of purpose that exit-oriented PE investors never experience.
Highlights
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Boring businesses have the best risk-adjusted returns in private equity because they combine stable demand, low competition, and reasonable purchase prices
Beshore presents data from Permanent Equity's portfolio: boring businesses (HVAC, specialty distribution, professional services) earn 15-25% unlevered returns because they're purchased at 4-6x earnings (vs. 15-25x for tech), face minimal competition from ambitious entrepreneurs, and have demand that persists through recessions.Was this useful?