GoDaddy - Coho Capital

GoDaddy - Coho Capital

Target: Go Daddy

Year: 2019

Firm: Coho CapitalCoho Capital

Source: Link


Business Summary


Key Trends

[General to the market discussed and relevant but not the investment thesis per se]

Investment Thesis


Key Takeaways

  • Fact checked their prediction that GoDaddy could compound 20% annually and found that GoDaddy has appreciated 21% in the past year
  • Found the idea of business model arbitrage really interesting, it would be cool to explore how to apply this strategy with other stocks
  • The playbook for companies in a fragmented market selling commodities: find a way to cut costs -> reinvest in advertising to scale up -> use scale to invest in moats that are not accessible to smaller companies
  • "Multiples do not embed expectations of future acquisitions"

Investment Memo Tips & Tricks

[Stylistic components of the model, good learnings for when you write your own]