Where socially-responsible investing meets technological disruption.

 
 
 
 
 
 
 
 
 
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Core Philosophy 1:

Disruption as Opportunity

 

We believe disruption is healthy for the economy. It creates tremendous opportunities for wealth creation and re-distribution.


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However, with tremendous opportunity comes upheaval, chaos, and unforeseen risks. Businesses with models acclimated to stable environments—and optimized around quarterly earnings—can easily become disadvantaged.

In contrast to many investment managers who shy away from potential uncertainty and risk, we fully embrace industries with large addressable markets being reshaped by disruptive forces.

 

Core Philosophy 2:

The Best Value Proposition Wins

 

Industry disruption has the potential to create a “land-grab” environment, leading to a higher probability of domination by a business or businesses with the best products and services. This is what we call the value proposition.


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If identified early in the growth phase, these companies have the potential to substantially outperform expectations, ultimately providing superior long-term returns. We look to invest in opportunities like these and hold for the long term. We avoid, or even short businesses we believe lack innovation or adaptability.

 

Core Philosophy 3:

Management: Critical to Long-Term Success

 

For businesses in which we choose to invest, we always seek out visionary management who are competing for the long-run.


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We believe many CEOs are overly focused on short-term metrics to please Wall Street analysts. This is problematic for long-term investors like ourselves. As a rule, we avoid investing in businesses that we believe sacrifice long-term innovation for short-term boosts in stock price.

 
 
 

Core Philosophy 4:

Going Green: A Win-Win

 

We believe the economics of going green are simply better for the customer—and for us.


Environmental: Going Green

We envision the massive shift to a more sustainable future as the “renewable energy revolution” of our generation.

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Transportation will go electric. Energy will be drawn from renewable, clean sources. Dirty polluters will fall by the wayside. For investors, the opportunity is enormous: This revolution can yield an astonishing redistribution of wealth as legacy business models may no longer be able to compete with innovative upstarts.


Social: Be Responsible, Always

Investors should not be made to feel squeamish when looking at the companies in their portfolio.

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We treat our investments as if we are the “owners” of these businesses. Corporate responsibility comes in many forms, but it’s our view that the most pressing existential question of our era is how corporations choose to treat the planet that we live in.


Corporate Governance: Think Like Owners and Speak Up

For far too long, shareholders have been effectively been locked out of corporate boardrooms.

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That vacuum of oversight has enabled corporate greed and short-term thinking to metastasize. Worm Capital takes an active approach: We openly criticize corporate behavior that does not align with the interests of long-term shareholders.