I owe Wayfair $W another thread for the incredible 1200% and the 600% gains it has given me in the remaining two positions bought in March.

A story about some preparation , some courageand then a lot of luck. Plus some ongoing due-diligence.

The original thesis, backstory and the initial follow-up from May. So not going to repeat the same again https://twitter.com/RamBhupatiraju/status/1258161309738246146?s=20

Simple thesis from March. https://twitter.com/RamBhupatiraju/status/1244758900534063104?s=20

When you have a company researched and in Watchlist, the occasional Market volatility could present some great opportunities rewarding your patience (on buying).

It's never fun to see your initial position quickly lose 40-50% in a matter of few wks, but when it's more due to Market than the individual company, you can double check your thesis, Balance sheet strength, and buy more if the Risk Reward is even better given the lower price.

Jumping into the Q2 presentation.
Some general tips on maintenance due-diligence (some relevant to this co, and others in general).

Understanding what Problem this Company trying to solve? How will it make it's Customer life better?

Understanding why this Co is better equipped to deliver that value to the Customer.

We don't need to take Mgmt's word for everything listed, but thinking about if it all makes sense given the ongoing trends and Co's unique strength.

What are the Company's current strategic priorities and how it's been executing on them?

Where is the growth primarily going to come from?

In this case, more and more Millennials entering the home-buying age, and more of Home furnishing purchases moving online.

That Revenue growth (in a relatively slow growth sector) and business strategy of not taking Inventory risk is just commendable.

Understanding it's Cost structure and how the Company is tackling them while balancing growth vs eventual profitability, and how it's delivering on them.

The Revenue growth, with a big increase in member growth, and Cash Flow growth are all commendable given the circumstances. This is the time to capture the mindshare of your core demographic while (offline) competitors are struggling.

Ideally I prefer recurring Revenue & high Gross Margin models in a high growth categories, but not all (succesful) investments need to meet that criteria if they have a differentiated Business model, aligned to the trends and bought at a low price.

I wouldn't necessarily add more today, but will continue to hold the current position while monitoring the operational results and general trends. (personal opinion, not an advice).

I wish them good luck in leveraging technology in continuing to provide value to their Customers, and Suppliers, while making the Logistics network even stronger thereby creating the flywheel.

Thank you for the brilliant execution and big gains in the last few months.

/END.