Rethinking Fees and Incentives

Our teacher today is Brent Beshore, founder and CEO of Permanent Equity, a firm that backs family-owned businesses across North America with no intention of ever selling.

As we explore what it means to build enduring companies and live a meaningful life, we turn to Brent’s unconventional path – one that challenges the core assumptions of modern private equity and the incentives that shape it.

Brent shares how his background in liberal arts and early experiences with success led him to question the traditional models of achievement, wealth, and performance. He describes why he rejected the “buy, lever, and flip” playbook in favor of permanent ownership, and how designing the right incentives can protect against short-term thinking and misaligned behavior.

This special session explores Brent’s journey from studying poverty and politics to building a different kind of investment firm, alongside deeper reflections on faith, introspection, relationships, and the pursuit of the good life. Please enjoy class with Brent Beshore.

For the full show notes, transcript, and links to mentioned content, check out the episode page here.

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Timestamps

(00:00:00) Welcome to Joys of Compounding

(00:04:22) Washington & Lee and Finding Mentor Harlan Beckley

(00:07:27) Liberal Arts Education in the AI Era

(00:09:23) Why Brent Writes and Communicates Online

(00:11:40) Being the Same Person Everywhere

(00:15:29) Starting the 2025 Letter

(00:16:46) Performance Culture and Almost Losing It All

(00:18:23) God's Love vs. Performing for Approval

(00:21:25) Building Permanent Equity

(00:24:54) What is the Good Life?

(00:26:56) Joy in Relationships Over Circumstances

(00:29:43) Peace, Wholeness, and Lou Holtz on Happiness

(00:32:28) Vacation Misery and the Performance Trap

(00:34:58) Introspection vs. Rumination

(00:37:51) Peter Kaufman's Influence and Compounding Ideas

(00:42:31) Studying the Investment Greats

(00:55:49) The Notre Dame Meeting That Changed Everything

(00:59:36) Self-Education Through Reading and Study

(01:09:39) Fee Structure: 2% vs. Performance-Based Incentives

(01:13:16) Never Be a Forced Buyer or Seller

(01:16:01) Building Your Own Investment Mosaic

(01:19:15) Standing Out vs. Becoming a Commodity

(01:21:09) AI Transformation in the Last 18 Months

(01:24:14) Technology, Inequality, and Human Flourishing

(01:28:26) Change Management and Upskilling Teams

(01:31:34) Building Community at Main Street Summit

(01:37:08) Tennis: From Childhood to Identity Transformation

(01:42:40) Closing Reflections on Friendship