I am a software developer, technologist and investor rolled up in one. I have a knack for explaining and simplifying complicated technical concepts in my role as Data Architect (designing the software stack), and have folded these skills into how I conduct research into stock investments and the underlying technologies they are building. I have been investor for over 20 years now, and over that time have been a regular subscriber to The Motley Fool newsletters as well as a frequent poster on their community forums. Over the past 2 years, I have refined my investment philosophy while studying the teachings of Saul Rosenthal (username SaulR80683) and his motley band of contributors making up the Saul’s Investment Discussions forum. It is community-based investing at its finest, and Saul’s methods perfectly align with my investment philosophies and look at the larger tech trends at play. My contribution to that community is in explaining the markets that these companies are in (their industry), and what it is that they are building (their platform and its ecosystem).
As for my investment style, I solely invest in a concentrated portfolio of companies that are experiencing hypergrowth. This typically means cloud-based SaaS companies, as that provides an architecture that really lends itself to rapid innovation and scale. I am interested in companies that are growing revenue over 40%, with recurring subscription-based revenue, coupled with high margins and a healthy amount of operating leverage. These are the companies that are able to scale sales immensely, and their profits with it. Customers should be growing markedly, while the existing customers should be spending more and more, as shown in the dollar-based net retention rate. Successful hypergrowth companies tend to easily prove the adage that “winners keep on winning”. Their execution should clearly show that they are solving the problems their customers are having, while saving them money (in workforce time and resources). They should be ever-expanding their product line, leveraging their existing architecture to solve new problems. Hypergrowth companies tend to become extremely sticky, as they embed themselves more and more into the every day operations of their customers — making it harder and harder to be able to migrate off their platform.
Unfortunately, The Motley Fool forums are antiquated. While they are great for the every day banter amongst contributors, they are difficult for the writing format I prefer. So, that, dear reader, leads you why I created this new site; I am bringing my long-form writings to a better platform. Here you will find my technical deep dives into SaaS technologies, sprinkled heavily with my investment research into execution and finances. And of course, you must forgive me the occasional pontifications on the subjects at hand, like the investment philosophies I adhere to, or the directions these technologies are taking. As I said at the start, I’m a technologist; I envision a brighter tomorrow, and I like to opine on the baby steps we are taking towards that future.
So, join me here as I cover the technologies powering today's hypergrowth stories — from the investment side!