Imagine returning 30% a year to your investors for 15 years straight. Now, imagine those returns coming during one of the worst periods to be an investor and doubling the returns of the S&P during that timeframe.

That’s how well Peter Lynch performed as head of Fidelity’s Magellan Fund from the late 1970s to the early 1980s.

One of Peter’s most famous quotes relates to the persistence of finding good ideas. He famously wrote in his book One Up on Wall Street:

“I always thought if you looked at ten companies, you’d find one that’s interesting; if you’d look at 20, you’d find two, or if you look at hundred, you’ll find ten. The person that turns over the most rocks wins the game.”

The mentality seems so simple on the surface, but as we’ve learned simplicity is a strategy. If we see more pitches, we’re more likely to get a few worth swinging at. But, staying in this state of mind sets the foundation for success in multiple ways that aren’t as obvious at first glance.

Early in our investing careers, we have almost no idea what we value as an investor. We have no experience sitting in board rooms or the advantage of seeing 100s of deals. We have no idea what great looks like or what matters to us as capital allocators.

As we turn over more rocks, our mind begins to set reference points for excellence, and our core values as investors start to form. We gain a sense of confidence that is informed by data.

Keeping the turning over rocks mentality throughout diligence pays dividends, too. With this mindset, we’re more patient during our research. Instead of looking for answers to validate our thesis, we continually look for data until we are satisfied with the answer.

It’s easy to get swept away in the momentum of any deal. But, having the data gathering approach over thesis validation is an excellent way to ensure that the momentum slows down until we reach a fitting conclusion.

Finally, and most obviously, in private markets, the ability to turn over the most rocks increases our odds of accessing the best companies.

Unlike public markets, private investing naturally limits the number of shareholders on a cap table. The ability to find and efficiently research opportunities more quickly than others AND to do so in the right quarries increases our surface area of success.