Thread by @JonahLupton

People ask me about my investment strategy so I'll try to sum it up in a short thread. Here's what I look for:

1) small/mid cap stocks under $10B market cap
2) at least 30% revenue growth
3) potential of 50% upside within 12 months
4) potential of 5x returns within 5 years

I'm less concerned about valuation on small/mid cap growth stocks if I believe they can sustain 50-100% revenue growth for 3+ years. If they can do this then they'll grow way past any valuation concerns. I love multiple expansion stories.

I look at SPAC investing as an opportunity for investors like me to play the role of late stage VC and invest in high-growth disruptive companies while growth is still in the early innings. Just a couple years ago these companies would've been raising D and E funding rounds.

Of course I care about management, culture, etc but these are not the first things I look at. You could spend 50 hours doing due diligence on a company and still not have the answers you need to some of these questions so I focus on the fundamentals and growth catalysts.

I also pay close attention to insider ownership, total addressable market (TAM), market share, competitive advantages, intellectual property (IP), gross margins, EBITDA margins, balance sheet, institutional buying, VC backers, competition, business model, international expansion.

Every day I try to be a better investor than the day before.

I read lots of blogs, newsletters, analyst reports, SEC filings, investor presentations

I listen to lots of podcasts, earnings calls, industry specific presentations

I look at lots of charts to study the technicals

Being a better investor means you need to have an open mind, be willing to admit your mistakes, cut your losers, double down on your winners, have conviction because you've done the homework and most importantly is have patience and don't panic.

Hope this helps.