Investing Thesis
The goal of writing a thesis is to articulate why you believe this particular investment will generate compelling returns. Keep your thesis succinct and focused on the most important factors driving your investment decision.
Checklist
High-level checklist for creating an investment thesis to build a picture of how, where and when value will accrue before committing to a decision strategy for controlling your position.
- Identify the underlying catalyst or trend driving the investment opportunity
- Assess how the specific investment is positioned to benefit from the catalyst
- Consider the biggest risks and potential downsides
- Determine your conviction level and expected return
- Write a concise statement (1-2 sentences) summarizing the investment thesis
- Include key supporting data points and analysis
- Outline your planned investment timeline and exit strategy
- Review and refine the thesis as new information becomes available
- Use the thesis to guide future decisions about the investment
- Be prepared to abandon the thesis if fundamental assumptions prove incorrect
Details
- Intentions
- Business Model
- Business Development
- Engineering Principles
- Tokenomics
- Flows
- Memetics
- Leadership
- Web3 Principles
- Narrative and Goodwill
- Community and Network Effects
- Developer Experience
- Token Economics
- KPI Metrics
Questions
Fundamental questions to ask before committing to an investment:
- How many are going to buy this?
- Why are they buying?
- What time horizon?
Convictions
- Culture will have the greatest impact on liquidity and accrual of value.
- The games we choose to play form the strongest cultural bonds across widest cross-sections of society.
- Goodwill is hard won but easily lost, you can never afford to lose people's trust and faith,
- The data layer is the most valuable layer in the tech stack.
- Intents and Interoperability will provide a layer of abstraction (via standardization) above blockchains, where AI will automatically send intents across network arbritrage opporunities based assessment of risk vs reward profile and opportunities.
- AI automation, Blockchain Integrity, Crypto Incentives, Internet of Signals in a closed feedback loop is the loop of the endgame.
- Decentralization and security won't matter until we learn the cost of failure.
Components
Investors
Thesis from notable players in investing and crypto:
Questions
What is the most important question you could ask yourself to make progress?