What Abdiel doesAbdiel generally invests in publicly traded companies that are likely to gain market share over long time periods. We prefer businesses that have recurring revenue and that are managed by people with a large share of their net worth in the stock. We also invest in private companies, preferring those that produce enough free cash to return principal within three to five years. Our ten largest investments frequently comprise more than 75% of invested capital. We started in 2006. What we want for our investorsReturns that are good on an absolute basis and that outperform the market, measured over 3-5 years. How we value companiesWe estimate the return a company’s cash flows would deliver to someone who bought the entire business at the available stock price and held it permanently. What we look for “under the hood” of companiesThe same thing we look for in our own. Leaders who care viscerally about the quality of the products they sell. A corporate culture in which people thrive. Coincidence or not, in our experience we make more money with companies we admire than with those we don’t. |
What we want Abdiel to add to the worldWork done well and with pleasure. The craftsman is a better person for his efforts, and so is anyone who notices. Moreover, good investment analysis helps companies raise the world’s standard of living. Enterprises work best when they have access to capital priced to reflect the value they can create. Index funds, by the way, do not price capital; they only mimic the actions of those who do. Why apply for a position at Abdiel?Probably the best reason is that you like studying a subject until you get to the bottom of it. Another good reason is that you like the sound of the firm described here. If you end up joining Abdiel full-time and apply yourself for several years, you could develop into a world-class investor. This means you will have learned to assess unfamiliar situations and make good decisions about them—abilities that will serve you well beyond the field of investing. It also means you’ll have made an enormous contribution to our firm and, at the same time, done something useful for the world. |
What Abdiel does
Abdiel generally invests in publicly traded companies that are likely to gain market share over long time periods. We prefer businesses that have recurring revenue and that are managed by people with a large share of their net worth in the stock. We also invest in private companies, preferring those that produce enough free cash to return principal within three to five years. Our ten largest investments frequently comprise more than 75% of invested capital. We started in 2006.
What we want for our investors
Returns that are good on an absolute basis and that outperform the market, measured over 3-5 years.
How we value companies
We estimate the return a company’s cash flows would deliver to someone who bought the entire business at the available stock price and held it permanently.
What we look for “under the hood” of companies
The same thing we look for in our own. Leaders who care viscerally about the quality of the products they sell. A corporate culture in which people thrive. Coincidence or not, in our experience we make more money with companies we admire than with those we don’t.
What we want Abdiel to add to the world
Work done well and with pleasure. The craftsman is a better person for his efforts, and so is anyone who notices. Moreover, good investment analysis helps companies raise the world’s standard of living. Enterprises work best when they have access to capital priced to reflect the value they can create. Index funds, by the way, do not price capital; they only mimic the actions of those who do.
Why apply for a position at Abdiel?
Probably the best reason is that you like studying a subject until you get to the bottom of it. Another good reason is that you like the sound of the firm described here. If you end up joining Abdiel full-time and apply yourself for several years, you could develop into a world-class investor. This means you will have learned to assess unfamiliar situations and make good decisions about them—abilities that will serve you well beyond the field of investing. It also means you’ll have made an enormous contribution to our firm and, at the same time, done something useful for the world.