My Investing Strategy

Below is a high level overview of my investing strategy.
  1. 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
  2. Rent value, own growth
  3. Is the company trying to transcend what they are currently doing? The Amazon test. Optionality is very valuable.
  4. COVID-19 accelerated everything 10x
  5. Things are a lot easier if you trust management
  6. Valuation doesn’t need to be cheap, but if it feels like a bubble, get out
    1. When in doubt, get out
  7. Areas of interest.  
    1. Tech – see note on margins above
    2. E-commerce – growing industry with tons of potential.
    3. Dopamine – Gambling, gaming, social media, really anything that spikes dopamine.  
I’ll keep developing this at this google sheet.

Author: fatbabyfunds