For the 100th episode, I’ve brought back my good friend Brent Beshore. Brent was the 10th guest on the podcast, after we met because of a mutual interest in capital allocation. I quickly learned that Brent was one of the most unique and thoughtful investors around. He was an entrepreneur from the moment he left school, trying many different things before finding a fit buying smaller business with the intention of owning them forever. What amazes me about Brent is his encyclopedic understanding of business and the nuances of different business models and deal structures. This comes from reps. He and his team have looked at about 12,000 deals over the years, at every kind of business that you could imagine. I’ve been with him when he goes through this process and it’s fun to hear what makes certain businesses stand out from others, which is largely the topic of this conversation. You all know transparency is key for me, so it’s important to know that my family and I are investors in a fund called permanent equity, run by Brent and his firm Adventure.es. To commemorate this milestone episode, I can think of no one better than Brent, because he exemplifies what has made this podcast so fun for me: learning from other people who are willing to share what they themselves have learned through fun, blood, sweat, and tears. Please enjoy our conversation, and thank you so much for coming along on this journey. I can’t tell you how much it means to me.For more episodes go to InvestorFieldGuide.com/podcast.Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.Follow Patrick on Twitter at @patrick_oshagShow Notes2:02 - (First Question) – How does he think about optimizing risk in terms of the capital stack when looking at deals5:27 – What conditions would they add debt down the road after investing in a company6:52 – What business sectors are most intriguing for Morgan to invest in right now6:57 – Trent Griffin Podcast9:34 – Why no HVAC businesses if it’s such an attractive sector13:56 – thoughts on rolling up similar businesses and horizontal scale16:04 – Another industry Brent would focus on18:02 – Difference between property management in larger cities vs smaller metro areas18:51 – What role does profit margin play when Brent is evaluating a business22:46 – The appeal of a hyper cyclical business22:52 – Brent Beshore Podcast Episode27:27 – Favorite counter cyclical business28:14 – How they judge assets, tangible vs intangible assets33:58 – How does he think about wage inflation when considering the cost of a business37:21 – His fascination with pet crematoriums38:57 – History of the permanent equity fund and the changes by having a larger pool of capital43:48 – Pitching investors on a new structure for the business46:14 – How will this business model scaleLearn MoreFor more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclubFollow Patrick on twitter at @patrick_oshag