As value investors we often ask ourselves what is the true definition of value? There are expert opinions on this matter, however, most of them generalize some global trend or latest business model. It is determined retrospectively which makes it outdated and often inapplicable. This top-down deductive methodology used by large institutions and organizations is no good.
We believe that the universal definition of value doesn’t exist, or rather, it is scattered across all industries where each piece evolves and changes its own suitable meaning over time. One must dive deep, explore every corner of every sector, and update it regularly to have a chance at forming a legitimate definition.
Given the improbable nature of this, fostering the bottom-up approach proves to be more practical as it brings us to a single industry where one becomes an expert and builds a proper matrix of knowledge around it before venturing out. This approach is what we refer to as our thesis, best known as Bottom Up Economy.
Great ideas start with a question. From that question stems a series of other questions that lead to the suitable real world application. Our process is as follows:
- Understand the reasons behind an idea
- Collective drive of a team
- Experience and roadmap for development
- Real technology built from first-principles
- Network effect that illustrates vitality
- Sustainability and long-term value
- Being where others are not
- Transformative solution
- Reasonable penetration strategies
Our distinct areas of interest:
- Fintech and Financial Services
- Consumer Hardware
- Breakthrough Technology
These are based on our backgrounds, interests and experience, however, we explore businesses besides the above mentioned sectors.