Our venture growth strategy is focused on
generating long-term capital appreciation.
As the name implies,
this strategy is all about growth,
which can carry more risk.
Sam believes in the power of compounding.
In venture growth, we invest in innovative,
well-run, financially strong companies and
then look to stay invested as they grow into even better companies.
This is a key component to building life-changing wealth.
We believe that innovation is key to growth.
Companies that embrace secular trends and innovation and
consumer demand often help transform the way the world operates
while simultaneously producing attractive long-term returns.
In venture growth,
we look for innovative companies that are positioned for enduring
outsized growth.
But growth in and of itself isn't enough.
We target companies with world-class
business characteristics as well.
To us,
that means strong pricing power,
attractive margins and returns on investment,
significant capital efficiency,
and talented, trustworthy management teams.
Venture growth does not have any market capitalization constraints.
We will invest in companies of all sizes.
However,
when the opportunity to invest in companies of all sizes,
we will invest in companies of all sizes. And if an opportunity exists,
we like to target smaller companies that are earlier in their life
cycle and which we believe have longer runways for growth ahead of them.
We've done extensive studies on attributes of the very
best performing stocks over the past several decades.
They come from all different industries,
have different business models,
and went public at different times.
But with very few exceptions,
the absolute highest returners over the long run
tended to be smaller companies at the time they began
producing huge returns for shareholders.
The message to us is clear.
If we can find innovative,
world-class companies and invest in them early,
there is potential for enormous outsized returns.
It's important to note that the high returns we're aiming
for in venture growth do come with a potential downside,
and that is short-term volatility.
So if you're someone who doesn't sleep well at night when the
market and your investments experience short-term drops in value,
this may not be possible.
be the strategy for you.
However,
if you have a longer-term horizon for at least part of your
capital and like the idea of investing in fast-growing,
innovative companies,
venture growth could certainly have a
place in your overall investment strategy.
