After a recent blowout of $ATER (though I still haven't sold a single share), I have slightly reevaluated my approach to investing in small, emerging companies.
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2/7
As the first measure, I made a few adjustments in my investing framework (documented in my upcoming eBook) to make it more rigorous.
My investing framework consists of a number of key components I always look at in every company when I do in-depth research on them.
As the first measure, I made a few adjustments in my investing framework (documented in my upcoming eBook) to make it more rigorous.
My investing framework consists of a number of key components I always look at in every company when I do in-depth research on them.
3/7
Key components of my investing framework:
1. Company Background
2. Technology
3. Total Addressable Market
4. MOAT
5. Business Model
6. Team
7. Ownership
8. Financials
9. Valuation
10. Risks
11. Optionality
Key components of my investing framework:
1. Company Background
2. Technology
3. Total Addressable Market
4. MOAT
5. Business Model
6. Team
7. Ownership
8. Financials
9. Valuation
10. Risks
11. Optionality
4/7
Previously, the companies that featured on my list of potential #multibaggers had to meet most but not all of the key components.
I was more loyal to some companies, allowing them to develop and gain certain parts from that list over time.
Previously, the companies that featured on my list of potential #multibaggers had to meet most but not all of the key components.
I was more loyal to some companies, allowing them to develop and gain certain parts from that list over time.
5/7
Going forward, companies must meet all the components of my investing framework (or be very close to meeting them in the very near future).
It does not change my investing theses for all companies I've mentioned before $ATER $SKLZ $BFLY $LCID $SENS $MTTR $DMTK.
Going forward, companies must meet all the components of my investing framework (or be very close to meeting them in the very near future).
It does not change my investing theses for all companies I've mentioned before $ATER $SKLZ $BFLY $LCID $SENS $MTTR $DMTK.
6/7
Though all of these companies are at the stage of building a foundation for the future scale, not all of them meet my investing framework criteria.
Being very disciplined and strict with my picks will increase the qlty of my investing and future research on other companies.
Though all of these companies are at the stage of building a foundation for the future scale, not all of them meet my investing framework criteria.
Being very disciplined and strict with my picks will increase the qlty of my investing and future research on other companies.
7/7
I'll continue to monitor the rest of these companies, and as soon as they develop all necessary components, I'll revisit them.
All my Substack subscribers will be the first to know about it โ 10baggerdan.substack.com.
I commit to sharing this information with all for free.
I'll continue to monitor the rest of these companies, and as soon as they develop all necessary components, I'll revisit them.
All my Substack subscribers will be the first to know about it โ 10baggerdan.substack.com.
I commit to sharing this information with all for free.
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