my results from the beginning of 2017 are just about a quintuple, 498% of what I started with, or +398%! (1.842 x 1.714 x 1.577) = 4.979.
Here’s an interesting observation that came to me overnight: those were my portfolio growth rates of roughly 84%, 71% and 58% producing a 5-bagger, a quintuple, in two and a half years.
But if you think of those same percentage growth rates as revenue growth rates for one of our companies you can see that a number of them can conceivably put up numbers like that (or a little lower perhaps), and that you don’t need miracles, or magic, or 100% growth every year, to quintuple your revenue in three years… 84%, 71%, and 58% sequentially will do it! Zoom, for instance will certainly do that or better (108% and 103% last two quarters. Hard to imagine an average for this fiscal year of below 90%, much less 84%. It’s just arithmetic).
It just seemed like an interesting thought about the incredible power of compounding. (And if the company’s revenue growth fell the next year to 50%, it would have a 7.5 bagger (7.5 times as much revenue as it has now).
Best,
Saul