I think we would always think of luck, when we think of people who invested in Home Depot, Amazon or Apple in their early days and held them forever.
Imagine buying Amazon at the IPO and holding it all the way to 2025, or Bitcoin at 3 figures and holding it all the way to $100,000 in 2025.
The returns would be 220,000 % for Amazon and about 100,000 % for Bitcoin
Well but surely no one could have foreseen that, right ? Well what if i told you there is an investor who did BOTH. Yes, meet Bill Miller.
Definitely he sparked my curiosity, how can the same guy spot two of the best investment opportunities of the last 20 years ?
So i started to research and listened to the interviews he has given over the years.
We can summarize the whole philosophy in one mantra:
“Investment that can disrupt a whole industry with a huge potential TAM”
TAM = Total Addressable Market.
Yes that quote sums up almost all of it, now lets see how it applied to Amazon and Bitcoin.
Amazon started as an online bookstore, but Bill Miller saw not only the potential to disrupt physical bookstores, he saw the potential to disrupt the whole retail industry via the internet, why sell only books when you can sell basically everything ?
Selling online was already representing a huge disruption over selling in a physical store, but selling more than just books, represented a HUGE TAM.
So amazon checked the mantra.
Now lets go with Bitcoin.
Bitcoin signaled the potential to disrupt the whole financial and monetary system as we know it, it is probably the most significant invention in the financial sector in history.
The market that Bitcoin adressed is basically the whole monetary network in the world, there is no bigger TAM than that…
Bitcoin checked the mantra.
That is how Bill Miller does it, till next time.
Zifush.