For opporunity cost purposes, I only initiate on what I perceive as potential multibaggers


  • Structural changes: Leads to incalculable surprise to the upside
  • Operating leverage: Right amount
  • Long runways: Huge achievable TAMs
  • Multibaggers: Usually a product of value and growth
  • Spawners: Companies with the potential to expand their universe indefinitely
  • Disruptors: Takes time and imagination to fully understand
  • Overlooked supply chain: Usually gems hidden deep in the supply chain
  • Discounts: Usually parent companies trading at a discount to equity NAV, with its core business turning around
  • Synergistic conglomerates: 1+1>2


  • FOMO mindset: Ignoring valuations
  • Perpetually declining business: Hard to evaluate

As a small retail investor, purchasing a company’s equity is an act of self-comfort, resulting from my inability to participate in the company’s forthcoming value creation.

-Mr. Waterbear