We recently listened to this podcast with Alex Honnold and were prompted to revisit the documentaries Alone on the Wall and particularly Free Solo, which documents his life leading up to and achieving the first free solo climb (no ropes or safety equipment of any kind) of the historic peak El Capitán in Yosemite National Park.
If you use a Mac, you’ve no doubt seen this massive slab of granite on your desktop at some point.
While Alex is a world-class athlete, it’s his mindset that stands out. After giving it thinking about the interview over several days, we think several elements of Alex’s approach to free solo climbing apply to strategic investment decision-making and operational excellence in SMBs — particularly how he thinks about risk, deals with moments of uncertainty, and continues to push himself to the edge of his potential.
While our (literal) lives may not be hanging on by a fingernail every day we show up to work, we realize the high stakes that come with stewarding capital well and managing companies in a way that honors all involved stakeholders.
Here are a couple of takeaways to share…
Every time Alex climbs free solo, he must assess which risks he is willing to take and which he is not. This could depend on many different factors on a particular day — how he slept the night before, the weather conditions, how strong he feels mentally, etc. He is keen in his self-awareness and meticulous in his planning to mitigate risk factors when he climbs.
Alex says, "It’s not like I'm just winging it. I prepare and train rigorously, both mentally and physically."
In the same way, risk management and mitigation are foundational to any investment portfolio. We're always thinking about managing risks and making sure we're not caught off guard — doing our homework, going into each situation with eyes wide open, and having plans to deal with contingencies as they come our way (not just becoming reactionary when things go sideways).
This is also a mentality we hope to encourage on the operational side within our portfolio companies. We want to be thinking about how they can prepare for unforeseen circumstances, stay proactive, spot risks early, and not shy away from discussing the challenges we see on the horizon.
We think this is a solid approach to ensure both resilience and sustainability while staying “on offense”.
There is a part of the film “Alone on the Wall” where Honnold has a moment of intense doubt while standing on a small ledge halfway up Half Dome.
“I found myself 1,800 feet off the ground and having a mini-nervous breakdown”. Alex later said, “There are no shortcuts to excellence. Dealing with fear is an essential component of free soloing."
This mentality is key in business settings, where fear of failure can often inhibit growth and innovation. By confronting fears directly and using them to fuel excellence and meticulous preparation, investors and companies can achieve remarkable outcomes.
The investment world is never short of surprises or uncertain moments. It's all about not letting the fear of what could go wrong hold us back but instead using it to sharpen our focus and planning. For investors, this means not only recognizing the inherent risks in every opportunity but also understanding the psychological and market-driven factors that can induce fear and uncertainty. This comprehension allows for more strategic decisions, focusing on long-term growth rather than short-term anxieties.
Alex continually reiterates that he doesn’t have a death wish. He seems to quite enjoy his life (he now even has a wife and 2 kids). But while most athletes who have made a habit of climbing without ropes have passed away, Honnold refuses to allow risk and fear to keep him from achieving what he believes he is capable of.
And while we won’t be attempting a free solo ascent in Siurana any time soon, there are always important lessons to glean from people who are performing at a world-class level in their particular domain.
