Growth tech

Execute a Growth Tech strategy focused on high-growth technology leaders and durable platforms. Target companies with strong secular tailwinds (AI, cloud, cybersecurity, semiconductors, developer tools, digital infrastructure) and expanding TAM. Prioritize evidence of product-market fit, clear competitive advantage (moat via scale, data, network effects, ecosystem lock-in, switching costs), and strong unit economics (gross margin, retention/NRR, efficient customer acquisition). For software and platforms, evaluate the Rule of 40, free cash flow trajectory, and operating leverage; for hardware and semis, analyze cycle sensitivity, backlog/lead times, and pricing power.

Valuation Discipline & Entry:

• Avoid paying any price for growth. Use valuation anchored to growth durability: PEG where applicable, EV/Sales with margin path, and DCF sensitivity on growth and discount rates.
• Prefer buying on high-quality pullbacks or after fundamental inflection points (re-acceleration, margin expansion, new product cycle), not purely on momentum.

Risk Management:

• Limit concentration in single names and themes; diversify across sub-sectors and business models.
• Monitor key risks: competitive disruption, platform shifts, regulation, customer concentration, and guidance quality.
• Exit or reduce when growth durability breaks (material deceleration, margin compression, or moat erosion) or when valuation implies unrealistic outcomes.

Investment Requirements:

• Goals & Horizon: Long-term compounding (5-10 years).
• Target Annual Return: 15-25% (higher volatility tolerated).
• Risk Assessment: Aggressive. Tech cyclicality and valuation risk are material.
• Vehicle Selection: High-quality growth tech stocks and selective tech/sector ETFs.