Know what you own or it will own you. Focusing on strengths is great, but you also need to understand weaknesses. The best management teams are always actively working to improve weaknesses. Understanding weaknesses helps you better understand companies.
$SPOT – When will margins improve? Will Spotify be able to gain more leverage over music industry? What if Podcasts remain decentralized? Is upside already priced in?
$SQ – How will Square grow into valuation? Will the seller ecosystem continue to have optionality? Is Facebook peer to peer payments a real threat? What if Bitcoin dips?
$Z – Is Zillow good enough operationally? Is Redfin a real threat? Is dominating the user end enough? What if the market dips? If the future is iBuying, will Zillow be the winner?
$ETSY – What if Facebook (or IG) enters the market? Are they doing enough beyond being a marketplace? How do you balance decentralization with added value?
$FB – Can $FB survive a dip to Facebook.com? Are the regulatory threats real? How will $FB re-invest earnings if future acquisitions are blocked? What if AR/VR is a dud? What if Zuck is a vampire?
$PINS – Is 6x from March lows justified? What if social commerce never catches on? Will Pinterest sell too early?
$SFIX – How can they raise margins? How can they lower churn? Growth isn’t great right now, will it ever accelerate?
$CRM – Can Salesforce continue to sustain growth via acquisition? How does Slack integration work?
$DKNG – Does DraftKings deserve such a high multiple? Can they grow without significant advertising spend? Why own $DKNG over $PENN?
$SHOP – How will Shopify grow into their multiple? How will investors react to declining margins? How will $SHOP increase their TAM?
$ADBE – Where does $ADBE go next? How can they sustain future growth? Will $ADBE become a value stock? How can $ADBE continue to drive margin growth?
$SE – What if Garena starts to lose popularity? Does $SE continue to be so future focused if they lose their cash cow? How much more optionality will $SE have?
$ZM – Does $ZM have enough optionality to continue growth? What is the moat long term? Does easy onboarding lead to easy off-boarding? How does Zoom grow into their multiple? Why do revenue forecasts show limited post pandemic growth?
$MELI – Is the multiple justified? Are $SE and $AMZN real threats in Latin America? Will Mercado Libre have continued optionality?
$STNE – How efficiently can Stone expand outside of Brazil? Does political climate allow for sustained growth?
$TDOC – How many efficiencies does the $LVGO merger really create? What if re-opening significantly hampers growth? When does the real competition come?
$AMZN – What if Jassy is a dud? Will Amazon be broken up? Is regulation a threat? How will Amazon sustain growth on such a big base?
$SMG – Can Hawthorne division keep growing at this rate? What if cannabis legalization slows?
$BTC – What if Ripple causes the flippening? JUST KIDDING. Lol @ XRP.