Welcome to Tech Stock Views!
Welcome to Tech Stock Views! Over the past 20 years of investing and working in tech, I’ve developed the below framework for analyzing high potential tech companies for investment:
Mission critical solution that customers *love* and is dramatically better than competition
Large addressable market
Ability to be the market leader over a long time period
Lack of major platform risks
Highly repeatable and scalable product and business
Strong growth and profitability profile
Reasonable valuation on key metrics vs comparable companies
Potential stock price catalysts (e.g., company is a possible acquisition target)
I’ve used the above formula to invest in Amazon, DocuSign, Marketo and others over the years with solid results, and so it’s a framework that works for me to analyze companies. However, you should not rely on it and should do additional research before buying any stocks.
For TSV subscribers, I’ll rate select tech companies on this framework on an ongoing basis. When companies I’ve bought no longer rank well in this framework, I will note that as well. I try to invest with multiple year time horizons instead of worrying about short term volatility.
In terms of my credentials, I won the Princeton stock picking contest overseen by finance professor Burton Malkiel while there as an undergrad. I also have an MBA from Wharton, worked at JP Morgan, and have worked at companies such as Amazon, Marketo, and Andreessen Horowitz in M&A / investing roles.
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