Fred Liu, what are the benefits of sharing secrets as an investor? A talk on the Hayden Capital way

Criteria to invest in a new business

• Enormous industry tailwinds / riding a big wave
• Pack leaders within the tailwind (since there are often winner-take-most dynamics)
• Extraordinary management teams that can steer the business through the tailwind and improve/evolve rapidly through the landscape
• Disconnected valuation from future intrinsic value (due to lack of knowledge about the business, uncertainty about its future, lack of clarity on quality of tailwind, business, or management etc.) — ultimately good execution means business can grow faster than the tailwind, so it will get multiple expansion plus ride the tailwind as it performs, uncertainty reduces, etc.

Predictors

• In consumer marketplaces: addiction to the marketplace from both consumers and suppliers