The Archimedean Approach
A philosophy of investment and operation rooted in first-principles thinking
The Inspiration
Archimedes of Syracuse was one of the greatest minds of antiquity—a mathematician, physicist, and engineer who understood that understanding fundamental principles was the key to achieving extraordinary results.
His insight about the lever—that a small force applied at the right point can move enormous weights—captures the essence of our approach to business. We believe that most businesses underperform not because they lack resources, but because effort is misdirected.
By understanding fundamentals deeply and identifying leverage points precisely, we help good businesses become exceptional ones.
“Give me a place to stand, and I shall move the world.”
— Archimedes
The Four Principles
Our approach distills into four interconnected principles, each building on the last
Break Down to Fundamentals
Before we can improve anything, we must understand it completely. We systematically deconstruct a business to identify its core value drivers—the essential elements that make it work. This isn't about spreadsheets and projections; it's about understanding the fundamental physics of how the business creates value for customers, employees, and stakeholders.
Key Insight:Most investors analyze businesses at the surface level. We dig deeper to understand the mechanisms that actually drive outcomes.
Challenge Assumptions
Every industry operates on inherited assumptions—'the way things have always been done.' These assumptions often persist not because they're optimal, but because they're comfortable. We systematically question these conventions, asking why each element exists and whether it still serves its purpose. Often, the biggest opportunities hide behind assumptions that everyone accepts without examination.
Key Insight:The most valuable insights come from questioning what everyone else takes for granted.
Identify the Lever
Archimedes famously said, 'Give me a place to stand, and I shall move the world.' In every business, there exists a leverage point—a place where focused effort produces disproportionate results. Finding this point requires deep understanding of the business's fundamentals and the discipline to concentrate resources rather than spreading them thin. We seek the fulcrum that transforms potential into realized value.
Key Insight:Concentrated effort at the right point outperforms scattered effort across many points.
Rebuild Around Value
With fundamentals understood, assumptions challenged, and the leverage point identified, we rebuild the business around what actually creates value. This isn't about cutting costs or financial engineering—it's about aligning every element of the organization with its core purpose. We design operations, incentives, and culture to reinforce value creation and compound over time.
Key Insight:Sustainable returns come from building better businesses, not from financial manipulation.
In Practice
What This Means for Businesses We Acquire
- ●Deep diagnostic work before making changes
- ●Patient capital with long time horizons
- ●Focused improvements rather than scattered initiatives
- ●Hands-on operational involvement
- ●Preservation of what makes businesses special
What This Means for Sellers
- ●A buyer who genuinely understands your business
- ●Stewardship, not strip-and-flip transactions
- ●Respect for the legacy you've built
- ●Flexibility on transition and structure
- ●Long-term thinking aligned with your values
“The first principle is that you must not fool yourself—and you are the easiest person to fool.”
— Richard Feynman
Operating Excellence, Not Financial Engineering
We prefer situations where thoughtful operating work—not financial engineering—is the main driver of returns. We're not interested in leveraged buyouts, cost-cutting exercises, or quick flips.
Instead, we seek businesses where our operating involvement and first-principles thinking can genuinely improve the enterprise— creating value for customers, employees, and stakeholders while generating sustainable returns over time.
If our approach resonates with you, we'd love to start a conversation.