However Bert Hochfield recently wrote an article saying there are only two companies with above 1 billion in revenue growing at ~60% (revenue this Q grew 62%) SHOP and SQ
I think this is an interesting point. Without wanting to speak for Saul or anyone else embracing the Saul method approach, effectively it leads us to the potential conclusion that if Shopify at over a $1bn revenue company no longer makes the cut with 50% growth then really we are saying that with the only exception of SQ, $1bn+ revenue companies are effectively out of the picture for Saul method investing.
Are we really that unsatisfied with $1bn+ revenue companies effectively being too big to grow fast enough for our liking?
The result of that is that we are left with 1) small companies and 2) largely unprofitable companies as increasingly American firms seem to be needing to get to $1Bn and beyond in the technology space before they become profitable (a la Shopify and Pure Storage etc).
I’m all for ruthless allocation of capital but this seems to me leading to very skewed growth investing in terms of company market cap and profitability lifecycle stage.
Just pondering aloud.
Ant