A Man's Search for Value

They say honesty is the best policy, and that externalising your goals makes you more accountable. Therefore, I’m going to start writing about Perimeter Solutions (PRM).

I first bought this stock back in April 2024 and have added to my position on three further occasions throughout 2025 and early 2026. The unrealised return on my investment is 2.1x with an IRR of 81% (all sounds good so far).

I bought this stock after hearing Christopher Begg of East Coast Asset Management discuss it on William Green’s Richer, Wiser, Happier podcast (Ep. 56).  Christopher discusses the quality of the management team and the potential of it being able to replicate previous success at other entities with multiple products under the PRM banner. 

Now here’s the confession…those short few minutes on a podcast were pretty much my entire due diligence process. I have done nothing more than read the high-level Q3 2025 earnings release. 

At the point of my initial investment I was aware that the company originally had a primary focus on providing fire safety solutions, which was appealing from a macro level as fire is as old as time, wildfires appear to be increasing in frequency and severity, and I imagined there might be reasonably high barrier to entry to such a market.

Clearly, at this stage, this is simply a lucky investment, and it might not even turn out to be that in the long-run. This is a very poor approach to investing, and not something I plan to replicate in the future.

However, not all is lost. They say that a key question when considering a new investment opportunity is whether the opportunity represents a more favorable outcome than any current investment. As I don’t currently know a great deal about PRM I am going to evaluate my existing investment using the tools and processes I’m creating to help me appraise future opportunities. 

Over the next few blog posts I will be sharing insights into my analysis of PRM and will hopefully finish with a decision as to whether to hold, increase or sell my position in the company.

Key takeaways from this month:

• A good outcome doesn’t mean I made a good investment decision. Likewise, a bad outcome doesn’t necessarily mean I made a bad investment decision. I must stay humble yet positive and always backtest my decision making (or lack of) to understand if there were flaws (and therefore learnings to be had) or if something totally unforeseen impacted the outcome.
• Knowing all I can about my existing holdings is just as, if not more, important than knowing what other opportunities are out there in the market.
• Identifying potential investment opportunities from professional investors is not in itself a bacd thing, but not performing my own analysis is unacceptable. I must create an informed opinion as to the current and potential value of a company so I can consider if the current price offers a sufficient margin of safety and potential upside.

As always, thanks for reading. I’m really excited to get stuck into my analysis of PRM, and it would be amazing to try and find someone to provide feedback on my process and outcome.

P.S. – Forcing myself to deliver upon my goal of posting once a month has really helped get my writing back on track. Again, sometimes just turning up is the most important thing you can do.