We apply the fundamental value investing mindset to thriving businesses that have superior technology at their core. We find most value in the scalable cloud-native companies that offer essential services to their clients.
In order to focus on exceptional businesses, we apply our checklist to filter down to about 15 businesses that match our criteria and that we love.
Several important selection criteria are: Is the competitive advantage growing? Is the business financing strong organic growth from operational cash flows? Is it data-driven? Do we admire management and is it led by a mission-driven founder? Is the capital allocation intelligent? Can the value of the business multiply over the next 5-10 years? Is the price we pay fair?