Thread by @BrianFeroldi

Mega-winners are often the 'top dogs' in their industry

Finding them early is HARD

Here are7⃣signs you may have found one

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1⃣Hard to categorize

$TSLA wasn't a traditional auto. No dealers. DTC sales. All electric. Didn't fit the mold

$NFLX was DVD-by-mail. No retail stores. Weird!

Some follow Blue Ocean Strategy - Create NEW markets

Ex:
$BL real-time accounting
$NVCR electric fields treat cancer

2⃣Product/service is a HUGE improvement over what exists today

$ISRG -> Robotic surgery - increases precision, less scaring

$ALGN -> Clear braces - removable, can't see them

$PODD -> Tubeless insulin pumps - no wires!

$DXCM -> Continous glucose readings

$NNOX ?

3⃣Smart backing

$SDGR -> Bill Gates

$SPCE -> @chamath

$SFIX -> @bgurley

Great companies often have great VC partners

I love to invest alongside

Andreesen Horowitz
Baillie Gifford
Benchmark
Kleiner Perkins
Lower Case Capital
Sequoia
Y Combinator

Etc

4⃣Strong balance sheet

Lots of cash, no debt

Great businesses often trade at huge valuations, giving them easy access to capital

Cash = optionality

(Sometimes the business is SO good they reach profitability fast like $TTD)

5⃣Moat building

You can see a moat being created

My fav is a network effect $FB, $MA but that's rare

High switching costs $SHOP

Brand $LULU

Distribution $JD

Low-cost production $IPGP

Counter-positioning $NNOX

The more the company executes, the wider it's lead

6⃣Management talks about the product & opportunity, not the stock

You want leadership focused on making a great product and building a great company, not simply trying to create short-term hype

7⃣Great place to work

Great companies attract great employees

Great employees create great products/services

Great products/services attract great customers

Great customers create great financials

Great financials create great stocks

What signs do you look for?

And what companies fit this mold today?