Buying This Disruptive Company With 5x Potential!
It has grown revenues over 25% in the last four years, the market cap is just $1 billion and it's trading at 10 times forward earnings.
Our portfolio finished last year with above 50% returns, and it’s currently up 30% within the last twelve months and 8% year-to-date, while the S&P 500 is up 12% in the last twelve months and 1.5% year-to-date.
This is despite a large drawdown in one of our foundational positions.
So, if it wasn’t our foundational positions, what was responsible for this outperformance?—Our ability to pick the right growth stocks.
Many of our growth stock picks became multi-baggers in the last twelve months. Hims, Root, Sofi, and Dave are just a few examples…
How do we do that?
All our growth stock picks have two common properties:
They are well-positioned to benefit from new technologies, especially AI.
They solve a critical consumer problem by leveraging those technologies.
In other words, they weren’t vitamins that would make your life more comfortable if you bought them; they were painkillers that consumers desperately needed.
For a long time, I had been looking for another business like this. I think I have found one.
This business:
It addresses a big and pressing problem affecting 70 million Americans.
Grew revenues at 26% annually in the last four years.
It’s already profitable.
On top of that, the management substantially raised guidance for a full year while most companies are struggling due to macroeconomic headwinds.
What’s even better?—The market cap is just $1 billion.
People don’t see it because it employs a complicated business model, and when they dive into the 10-K, they get terrified because of the complexity. This creates a great opportunity for those putting in the effort to understand it.
Because when you do, you see that it’s actually simple, and beyond that—it’s genius.
Given that growth will accelerate after GAAP profitability due to the flexibility that comes with it, I think it can quickly become at least a $5 billion company.
So, let me cut the BS and dive deep into this hidden gem!
🏭 Understanding The Business
The United States is going through an affordability crisis.