My first 1⃣0⃣0⃣ bagger. Finally.... Love you $LULU 💕
I'll not pretend to be an expert on 100 baggers (this is a nominal win, read Pt11), but will just share some general and some specific lessons I came across thru my holding of $LULU.
12 Lessons from the 12 year journey. ⬇️
1⃣Be open minded : Good ideas can come from anywhere.
Fresh from reading Peter Lynch's "One Up On Wall Street" back in Dec'08 I wanted to pick one branded athletic retailer. $NKE $LULU $SKX might have been the choices.
I read up few free articles on Motley Fool and elsewhere and the basic analysis was good enough for me to get started.
What attracted me to $LULU back then was
-Yes, it's catchy name to begin with
-Small but a leader in a growing Healthy Lifestyle trend
-Founder led
My biggest losers of all time (on % basis or opportunity cost) and what I learned from them.
"Experience is what you get when you didn't get what you wanted."😂
Most of these Co.'s, I got in either due to low valuation (which ended up being Value traps) or envy out of missing their previous gains (while not knowing enough about the quality/sustainability/future outlook).
Except for a couple of cases ( $SDRL $UA), I also didn't know enough about the Management teams. Even in those two cases, the founders mismanaged the strategy/business later.
I love the combination of
✔️Picks & Shovel plays in the Digital Transformation, led by innovative leaders
✔️The best Co's in this space delivering important solutions while leveraging the best of SaaS Business models.
✔️LT view, buying early, buying slowly, stomach for Volatility
1⃣The ability to offer innovative/critical/useful solutions to Customers by leveraging the latest technologies
2⃣Developing an effective recurring revenue and high Gross Margin business
3⃣Landing/retaining/expanding Customers
4⃣Efficient S&M/R&D for sustainable growth
Co.'s that can do these effectively and consistently will reward shareholders over the long-term.