I originally authored this short values document in Aril 3rd of 2023, I revisited it for the first time on October 8th of 2024. I plan to revisit it roughly every 8-12 months. I think this cadence provides for reflection, realignment, and reduces the urge to constantly tweak longer term goals & vision (which obviously reduces their validity etc)

Red Hill Equity Holdings (RHEH) Strategy Guidelines and Summary

Purpose is the guiding star, the missions are the mountains you cross …  missions have finish lines

Don’t get Peggy Hill “Is That All There Is?” syndrome, always have a mission / vision  

If you equate the idea to the company you are much more likely to give up on the company. The ideas are not the company. Don’t ever give up on the company. Conversely, if an idea succeeds don’t fall in love with it, be prepared to move the company forward and try new ideas. 

(Never changes or changes ever 100yrs) Purpose - Build a compounding machine. 

(Changes ever 10-15yrs) Mission (BHAG)  -  Make 1M a year in cash flow by 2030.

(Never changes) (though ironically I’m always changing them or tweaking them) Values

• Focus

• Embrace change, experimentation, and innovation

• Bias to action 

• Realistic optimism 

• Inverse when possible

• Frugality and Fun

• Scary is good and usually a signal

(To keep values while growing institute a “key value lifter” a senior employee who proves themselves to be an intuitive chooser of talent)

Red Hill Business Criteria (Investing and Starting)

Businesses 

• Has to be able to offer the consumer many options or SKUs & encourage adding more / create behavior of returning for more, bonus if the experience is a “delight” to customer especially if consumer facing

• Soon-to-be obvious but only recently possible 

• Solving a difficult, boring, complex problem with an easy-to-use, elegant solution

• Ideally B2B, future of work, and consumer products

• Things that are generally interesting, or could be described as cottage industries

Founders and Operators

• Frugal, energetic, good morals

• Have a deep understanding of the space they’re in

• Proven track record is a plus 

• PHD (Poor, Hungry, Determined) is a plus

That’s it, until I update it in the future. I find it ironic that I’m a Libra (shoutout October 19th) because I often feel starting a business. Especially one that you hope to be a compounding machine. Requires on one side of the scale short term focus, while also having long term focus. An interesting dance to play.