Atlassian Founder Invests in SaaS Too!

This is relevant because it speaks to the topic some like to point out here:

Isn’t investing in all the “SaaS” stocks way too risky? Well, one of the Co-founders of Atlassian doesn’t think so. Here’s an article discussing how the Portfolio Manager of his family wealth fund “Grok Ventures” is investing his money as he sells down shares of Atlassian over time.

"Rosenberg’s job is to help Cannon-Brookes gradually diversify his wealth away from the $12 billion he has tied up in Atlassian.

According to documents filed with the US Securities and Exchange Commission, Cannon-Brookes is gradually selling down his stake of 61,742,279 shares at a rate of 46,923 shares a week.

At prices of around $US130 ($187) a share that’s funnelling around $US1.2 million ($1.7 million) a working day, $US6 million a week or $US312 million a year into his Dollarmites account."

They invest in 3 main buckets: Venture Capital, Global Equities, and Stable.

Here are some of the notable public companies they own which fall into the “Stable” category.

Tencent
Baidu
Alibaba Group
Zoom
Walt Disney
Apple
Adobe
Salesforce
Amazon
Google
Shopify
Netflix
Twilio
Splunk

And this is the part that applies to what we do here… Why so much SaaS/Tech exposure? Well here are their thoughts:

“One of the main ways we play listed equities, and we are talking our own book here, we believe enterprise software-as-a-service companies are driving innovation globally, they are making processes cheaper better and faster.

SAAS companies sell products but charge for them on a subscription basis delivering recurring revenue rather than creating one-off customers.

A lot of people observe that we are going from Atlassian to another SAAS stock but diversifying away from technology actually doesn’t make any sense because technology actually touches on every sector,”

So,

  1. These types of companies are driving global innovation, faster processes, and cost savings
  2. Recurring and reliable revenue
  3. Tech touches every sector

Those 3 things sound familiar to me (we talk about them here often!)

So… it looks like we’re not so crazy. Or if we are, at least this billionaire entrepreneur and his portfolio manager are crazy right alongside us!

The article: https://www.afr.com/companies/financial-services/meet-atlass…

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