Thread by @RamBhupatiraju

#SaaS had it's GFC moment in early Feb 2016 (when LinkedIn & few other Co's had some warnings). What a 5 years it has been since then. 🚀🚀

Few🔟baggers in the SaaS land since then.
$NOW* $TEAM $HUBS $WIX $VEEV* $PAYC* $RNG
( $TWLO* & $COUP joined the party in mid 2016).

$SHOP with it's 60 bagger spoils the chart for the rest😂, so including it along with $SQ which was another monster winner.

Charts above shows what can happen when we
✔️zoom out of the daily noise 🙉
✔️identify strong/secular trends 📈
✔️pick the best run companies within ✅
✔️hold them for the long-term while those excellent businesses execute. 💪

Yes, I get the multiple expansion & Valuation aspect (which fluctuates with the short term market conditions), but it happened against a backdrop of immense Business value creation and growth by these Co's, and the Market's appreciation for it's business model quality.

There could be swift drops for some of these Co's as they stumble with their earnings reports or general Market conditions, but many of them will continue to create Business/Intrinsic value and the long-term stock prices will follow.

Keeping aside the stocks discussion, #SaaS is one of the most interesting Business models to learn for investors.

Here's an excellent document for that.

assets.kpmg/content/dam/kp…

My old tweet about the same. 👇

https://twitter.com/RamBhupatiraju/status/1317982326798909441