Ecommerce, online payments and SaaS are early stage secular growth areas and they are likely to grow for years.
Penetration rates are still quite low and these industries make life easier, both consumers and companies *need* these services and they save them both time + money.
Penetration rates are still quite low and these industries make life easier, both consumers and companies *need* these services and they save them both time + money.
Ecommerce = more choice, cheaper and more convenient. Who doesn't want this?
Online payments = make ecommerce possible
SaaS = increased productivity, cost savings for companies, security. Which biz doesn't want this?
These companies are asset light, compounding machines.
Online payments = make ecommerce possible
SaaS = increased productivity, cost savings for companies, security. Which biz doesn't want this?
These companies are asset light, compounding machines.
Finally, these businesses are "sticky", either due to network effects and/or switching cost which means their customers tend to stay.
Best of all, these customers buy relatively small ticket items, repeatedly and for long periods of time, both during booms and busts.
Best of all, these customers buy relatively small ticket items, repeatedly and for long periods of time, both during booms and busts.
In summary -
High growth, early innings, asset light, moat, customer loyalty and pretty regular cash flows through the entire business cycle!
This is why these companies are fully valued and despite this, almost my entire capital is allocated to these secular growth businesses.
High growth, early innings, asset light, moat, customer loyalty and pretty regular cash flows through the entire business cycle!
This is why these companies are fully valued and despite this, almost my entire capital is allocated to these secular growth businesses.
