Thread by @BrianFeroldi

I bought 9⃣stocks last week

6⃣are new positions
3⃣are adds to existing positions

They all check LOTS of the boxes that I look for in 10x returns

Want to know which stocks I bought & why? ⬇️

1⃣ $CRWD - New position

High valuation (56x sales, 769x forward p/e), but wanted some skin in the game

✅FCF Positive
✅Founder led
✅Mission Driven
✅Operating Leverage
✅Optionality
✅Profitable
✅Recurring revenue
✅Strong Growth
✅Widening Moat

Opportunity:

2⃣ $DDOG - New position

High valuation (42x sales 714x forward p/e)

✅FCF Positive
✅Founder led
✅Operating Leverage
✅Optionality
✅Profitable
✅Recurring revenue
✅Strong Growth (56% rev last quarter)
✅Widening Moat

Opportunity: $35 billion & growing

3⃣ $ETSY -- Add

Modest valuation (82x trailing PE, 66 forward), not terrible given growth

✅FCF Positive
✅Operating Leverage
✅Optionality
✅Profitable
✅Recurring revenue
✅Strong Growth (128% rev last quarter)
✅Widening Moat

Opportunity:

4⃣ $GDRX -- New position

High valuation (853x trailing PE, 125 forward)

✅FCF Positive
✅Founder Led
✅Mission Driven
✅Optionality
✅Profitable
✅Recurring revenue
✅Strong Growth (36% rev last Q)
✅Widening Moat

h/t @richard_chu97 for reminder on this one!

Opportunity:

5⃣ $PGNY -- New position

High valuation (539x trailing PE, 142 forward), not terrible given growth

✅FCF Positive
✅Mission Driven
✅Optionality
✅Profitable
✅Recurring revenue
✅Strong Growth (54% rev last Q)
✅Widening Moat

Opportunity:

6⃣ $PINS -- Add

Modest valuation (228x trailing PE, 83 forward PE), not terrible given growth

✅FCF Positive
✅Founder Led
✅Mission Driven
✅Optionality
✅Profitable
✅Recurring revenue
✅Strong Growth (48% rev last Q)
✅Widening Moat

Opportunity: $750 BB TAM

7⃣ $SMLR -- Add

NOT expensive at all! (61x trailing PE, 36x forward PE)

✅Debt Free
✅FCF Positive
✅Operating Leverage
✅Optionality
✅Profitable
✅Recurring revenue
✅Strong Growth (32% rev last Q)
✅Widening Moat

Opportunity:

8⃣ $U -- New Position

Expensive (38x sales), but wanted some skin in the game

✅High Margin
✅Operating Leverage
✅Optionality
✅Recurring revenue
✅Strong Growth (39% rev last Q)
✅Widening Moat

(Piggyback on @Beth_Kindig & @JRogrow & @TMFStoffel)

Opportunity: $16 BB+

9⃣ $ZM -- New Position

NOT Expensive (158x PE, 95x forward) given growth

✅Debt Free
✅FCF Positive
✅Founder Led
✅Mission Driven
✅Operating Leverage
✅Optionality
✅Profitable
✅Recurring revenue
✅Strong Growth (369% rev last Q)
✅Widening Moat

Opportunity: $43+ BB

I believe that many of these companies will follow my favorite investing thesis:

If you want to know the bull case for many of these, search for "industry focus" & the ticker

Have discussed many of these companies in details

Here's $PGNY & $SMLR, for example

fool.com/podcasts/indus…

My plan is to strategically add to these companies at better and better value points over time

Don't follow me blindly!

Do your own research!

Don't just buy and hold them!

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brianferoldi.substack.com