Skillz (SKLZ)... and a Wonderful Surprise!
I am a big fan of the Coffee Can Portfolio, an “Active Passive” approach to investing. The idea is simple: You try to buy a basket of the best stocks you can and let them sit for years. You incur no costs with such a portfolio, and it is simple to manage.
You can follow my 3-5 year stock baskets here on my Scorecard.
Funny How The Internet Works
Pinterest (PINS) has been a wonderful investment thus far. I disclosed my purchases in March and June on the Scorecard. As of today, the purchases are up +450% and +220% respectively.
I later shared my thinking about the company here:
Well, it turns out, someone saw the post on Stocktwits, put $300K into it, and made half a million dollars!!
Yes. True story.
A few days ago, they surprised me with a $250 Grubhub gift card. As you can see, I already spent some of it :)
What a wonderful surprise to start the new year. Thank you B!
What does this have to do with Skillz (SKLZ)?
Well, when we spoke, he suggested investing in Skillz (SKLZ), another significant investment for him.
Here’s the Skillz investment report (probably from a sell-side research firm) that I came across on Twitter, so I thought I’d share.
(Sharing simply as found).
Am I Buying?
I haven’t had a chance to delve very deep into the company but here are some first impressions.
Positives:
Interesting Large Global Market.
Company is growing fast.
Skillz’s “new method” for monetizing mobile games is interesting, especially in the post-Privacy world Apple is pushing us towards.
Lots of interesting sources of optionality and revenue growth supposedly not represented in current forecasts.
Open Questions:
Credibility of the CEO
How difficult is it to build/replicate Skillz’s “competition SDK”?
What do game developers think? Do they like working with Skillz? Why?
Company Culture?
Verification why their platform is not considered gambling but instead “skill based”
Happy Investing!