My Investing Strategy
Below is a high level overview of my investing strategy.
- Look at marginal costs
- Scale is important
- Any companies that have a high fixed cost and low marginal cost intrigues me
- Companies scale now easier than ever. See Zoom recently. The market hasn’t fully caught on to this.
- Read aggregation theory
- Rent value, own growth
- Is the company trying to transcend what they are currently doing? The Amazon test. Optionality is very valuable.
- COVID-19 accelerated everything 10x
- Things are a lot easier if you trust management
- Valuation doesn’t need to be cheap, but if it feels like a bubble, get out
- When in doubt, get out
- Areas of interest.
- Tech – see note on margins above
- E-commerce – growing industry with tons of potential.
- Dopamine – Gambling, gaming, social media, really anything that spikes dopamine.
I’ll keep developing this at this google sheet.
