There are a lot of literature on value investing and I certainly was self-taught in that approach. Could anyone who works as a growth equity investor share their success and approaches? In particular, how do you think about?
- market size
- competition
- unit economics on customer acquisition
- etc.
Thank you!
Not sure if you have read Common Stocks and Uncommon Profits but it is a great book for growth investing and the mindset behind it
Thank you! Peter Fisher is very well respected in that space and yes scuttlebutt works in any kind of investing really. I will definitely read through that book one more time.
I have a view on where the world is going and this informs the investing framework.
For every company, I ask "is this on the right side of change?" Or, is this not on the wrong side of change.
Most companies I own have a secular growth theme. The challenge is identifying these themes. And we still have to value them correctly.
But we don't have too worry too much about valuation if they are growing +50% YoY.
An example.
Cryptocurrency/blockchain. IMO, most cryptos are massively overvalued. Bitcoin is a long-term buy, although I'd wait for a better entry (I'm thinking 1500 could be a low). Blockchain is a valuable technology, but its use cases are too far into the future.
So whatever I wouldn't buy OSTK I guess ha, there aren't too many ways to access it in the public markets.
The point is that growth investors have to be thoughtful about new technologies. Cannabis, to me, is a bubble right now.
What's good? Software. It's gotten expensive, but two years from now it won't be. Semiconductors, they power the software. You have to pick the disrupters.
Other industries have their secular growers. Beauty in the consumer space, driven by the selfie generation. Travel as well, driven by FOMO social media.
Healthcare. Medtech and biotech/pharma, but be careful with drug price regulation. Consumer-driven healthcare helps MCOs.
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