The method · how every reading is built

First principles, then a million simulations.

Most research prices the world as it is. We price the world that's being built. Every reading answers two questions — is the thesis real? and is that already in the price?— with seven evidence-cited factors and a one-million-path Monte Carlo, read against the whole market's temperature. No free-text opinions. No black box. Every number cited, versioned, and reproducible.

Question one
Will this company compound for a decade?

Thesis Quality — seven factors, each scored by an agent against cited evidence, combined by a geometric mean so a single broken dimension can't be averaged away.

Question two
Is that future already in the price?

The price algorithm — a million-path Monte Carlo of where the company could be worth in five years, then the honest read of what today's price is already demanding.

Thesis quality · the seven-factor lens

Seven questions that separate creators from rearrangers.

Rearranging the present optimizes what exists. Creating the future builds what didn't. Each company is scored on seven dimensions drawn from Deutsch, Thiel and first-principles engineering — never a free-text opinion, always a cited number that moves only when the evidence moves.

01Vision

Does leadership see something the consensus doesn't — and are they executing a multi-decade contrarian thesis, not chasing the quarter?

02Execution

A track record of hard milestones actually hit, at scale. Ambition is cheap; delivery is the filter.

03Problem Hardness

How hard is the problem? Physics-constrained and genuinely difficult means defensible. A commodity gets competed away.

04Moat

Why won't this be commoditized in ten years? Every moat is stress-tested and returns a verdict — survives, mixed, or fails.

05Reach

Deutsch's test of explanatory reach: does the core capability generalize into new domains, or is it a single trick?

06Constraint · Current

Does the company solve the bottleneck binding its thesis today?

07Constraint · Forward

And the bottleneck likely to bind by 2028–2030? Weighted heavier — the future constraint matters more than the present one.

The composite

Combined by geometric mean — a weak moat or a missed decade drags the whole score down. There is no averaging away a broken thesis.

The universe · what earns a place

We only score companies that could matter.

Before a single factor is scored, a company has to clear five thesis-fit tests. It's the discipline that keeps the list to businesses becoming essential to the next economy — and it's the part with the longest track record.

Counterfactual
If this company vanished, would the future be meaningfully poorer? Rearrangers fail here.
Builder-led
Run by the people who build the thing — not those who administer it.
Truth-seeking
Decisions driven by reality and evidence, not narrative or consensus comfort.
Error-correcting
A culture that finds its own mistakes faster than the market finds them.
Long-horizon
Optimizing for the decade, and structurally able to ignore the quarter.
Backtested selection
2–10×
the S&P 500, across eight historical backtests of the thesis selection.
Backtested results. Not a forecast, and not a guarantee of future returns.
The price algorithm · a million futures

We don't pick a price target. We simulate the distribution.

A point estimate pretends the future is a single number. It isn't. For every company we run a real one-million-path Monte Carlo of its value five years out, then read the whole distribution — the bear case, the base case, the bull case, and the tail where the great outcomes live.

Bearp25Basep50Bullp75Tailp95probabilityyear-5 company value →
Bear p25 · Base p50 · Bull p75 · Tail p95Illustrative — every company gets its own distribution.
What goes into a path

Each of the million paths is drawn from correlated, empirically anchored assumptions — not round numbers. The building blocks:

Thesis coherence

Creators diverge upward; rearrangers de-rate. A creator-intensity score blends each company between the frontier it could ride and its own organic path.

Deutsch · first principles
Real fundamentals

EBITDA, enterprise value and net debt pulled straight from EDGAR filings — not a multiple of a proxy of a guess.

SEC EDGAR XBRL
Tail hazards

Power-law survival rates from the study of nearly every US stock since 1926. Most of the market's return comes from a tiny tail — so we model that tail explicitly.

Bessembinder (2021, 2023)
Learning curves

Wright's Law cost declines by domain — AI accelerators, batteries, solar, robotics — so cost and volume compound the way they actually have.

Wright · ARK · Lafond et al.
Advantage period

Excess returns fade on a half-life set by the moat verdict. Monopolies hold for two decades; commodities fade in five years.

Mauboussin, Measuring the Moat
Growth deceleration

The law of large numbers, made explicit — a size-damped ceiling so no company is allowed to grow 30% forever.

McKinsey · Damodaran
Implied expectations · the inverse read

What is today's price already assuming?

Turn the distribution around. Given where the stock trades now, what five-year growth rate is each outcome demanding? That single inversion places every company on one honest ladder — from priced below its own downside to priced beyond the tail.

Priced below its downsideEven the bear case clears today's price.
Asymmetric upside, unpricedThe market isn't paying for the base case.
Fairly pricedPrice sits near the base of the distribution.
Priced inYou're paying for the bull case to arrive.
Priced for perfectionOnly the tail justifies the price.
Priced beyond the tailEven the 95th-percentile future isn't enough.

Because the classification reuses the exact thresholds behind the four-tier signal, the read and the verdict can never disagree.

The signal · entry discipline

Four verdicts. And a hard line between buying and selling.

Quality, price and the market backdrop collapse into one shape-aware entry signal — read straight off where today's price sits in the modeled five-year range.

Strong Buy

The whole modeled five-year range clears today's price — you're buying below its own downside.

Accumulate

The base-case upside isn't in the price yet. Room to build a position.

Hold

Fairly valued for the quality on offer — own it, don't chase it.

Wait

The future has caught up to the price. Patience is the position.

Entry ≠ exit

The signal only ever sizes an entry — Strong Buy, Accumulate, Hold, or Wait. It never says sell. Selling is governed by pre-committed thesis-break triggers: falsifiable conditions you set before you buy. A position can be fully valued and still held for years — until the thesis itself breaks, on rules written in advance, never on a nervous model.

Intellectual honesty · what this is not

The discipline is in what we refuse to claim.

Error correction is the whole thesis. So the model is built to be wrong out loud, not confident in silence.

It is not a short-term price predictor.

The distribution's validated job is catching failures — real busts fall below the bear band — and staying internally coherent. We do not sell you a next-quarter target or a promised hit-rate.

It is not a black box.

Every factor is evidence-cited, every constant is versioned, every snapshot is reproducible. When a score moves, its citation moves with it — and nothing touches the scoring logic without a backtest and a version bump.

It is not a sell machine in disguise.

The signal sizes entries only. Exits belong to thesis-break triggers you commit to in advance. A model should never panic you out of a position it can't re-underwrite.

A reading, in full · interactive

The whole method, on one company the crowd wrote off.

Everything above — the seven factors, the million-path distribution, the implied read, the exit rules — applied to a company you already know. Click the price bands. Open any factor.

G
Alphabet
GOOGL · $3.0T · Internet & AI
Rank
#5
of 100 on the record
Thesis
89
geometric mean of seven factors
Signal
Strong Buy
+14% / yr · priced below its own downside
5-Year OutlookTap a band

+3% / yr · Search holds, Cloud keeps compounding — and it still clears today's price.

today $3.0TBearBaseBullTail
Thesis Quality — Seven FactorsTap for reasoning

DeepMind's discoveries generalize — AlphaFold rewrote structural biology; the same lab now does weather, materials and mathematics. Explanatory reach, not one product.

The Contrarian Read

The market prices Alphabet as a search company being disrupted by AI. First principles say the opposite — it owns the deepest AI stack on earth: custom TPUs since 2015, DeepMind, Gemini, plus distribution to billions and Waymo's lead in autonomy. Even a bear case that gives Waymo zero credit and assumes search merely holds clears today's $3.0T.

Implied expectations

At $3.0T, the price demands only ~3%/yr — below the base case. Upside to the tail is 4.5×.

Candidate thesis-break triggers
WATCH

Search query share falls for two consecutive quarters — the disruption thesis actually materializing.

TRIM

Gemini falls behind the frontier on independent evals — losing the model race.

HARD SELL

A forced structural breakup fragments the ad-and-distribution engine.

Illustrative reading, for demonstration. Live readings re-run on material events and are reserved for subscribers.

The method is the moat. The reports are the product.

The few companies becoming foundational to the next economy — each one scored, simulated a million ways, and put on the permanent record.