My convictions & 7 investment thesis:
1 Category defining $LULU
2 Leader in secular growth $DKNG
3 Demographic shift $PTON
4 Technology paradigm shift $SNOW
5 Brand leader in an existing segment $ABNB
6 Disruptive - existing segment $LMND
7 Proven category, new segment $SE
1. Category defining companies e.g. $LULU, $UBER $ABNB are creating a new category. It never existed before. The TAM is largely unknown until they make it up.
2. Leaders in a secular growth segment $CHWY $DKNG are sectors / industries that I believe will grow dramatically in 5-10 years for many reasons. These companies are the clear leader by revenue, growth, margins, etc.
3. Demographic shift $PTON $GMBL - these companies cater to the changing demographics in our world. Young people for e.g. prefer to work out at home, or Younger folks bet on eSports and not traditional sports.
4. Technology paradigm shift. $SNOW $U These companies are leveraging a shift in a new technology shift. E.g. Cloud Data warehouse with $SNOW and move to AR / VR gaming with $U. They are going to take share away from older companies like $TDC or $SONY
5 Potential brand leader in an existing segment: $ABNB $SBUX - everyone knows the segment and it is a big market, but no leading brand exists until these come along. E.g. Travel and $ABNB and Coffee with $SBUX
5. Disruptive companies in an existing segment: $LMND in insurance or $ROOT in insurance. These companies threaten the existing players by going after their margins, or their lack of customer service, etc. Another example $NFLX and $BB (Blockbuster)
7. Proven category in a new market / country / segment E.g. $CPNG for eCommerce in Korea, or $HUBS - marketing tools for SMB
These companies are taking an existing playbook from a leader i.e. $CPNG - $AMZN or $HUBS - $CRM and adapting it for a new region (Korea) or segment (SMB)
The companies I provided are just examples. There are many such companies in each category.

I was trying to explain my thesis based approach.

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More from @mukund

4 Apr
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SaaS company focused on the $60B "Experience Management" market that went IPO in Jan 2021

Stock price: $32.43
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52WKL::52WKH $32.31 – $57.28
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$ZI growing fast, (smaller base however) Image
$ADBE $CRM $HUBS $ZI $MDLA and $SPT - Looking at Gross Margins:

Amazing to see correlation between EV / NTM and GM% - more than growth

It may seem obvious but higher GM% (even with smaller growth) is valued higher Image
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To the left and higher is better.

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29 Mar
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