Increasing Returns

Atlassian's latest investor day showed growing ambition from this 20-year old cloud pioneer.A transcript with additional links can be found here: https://www.hellerhs.com/post/atlassian-growing-ambition— Increasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

Software as a service (SaaS) companies are frequently misunderstood because they are investing for the long-term and don't generate accounting profits today. It turns out SaaS shares an eery resemblance to Walmart when it was in hypergrowth mode.To find out why, listen on.A transcript of this episode is available at: https://www.hellerhs.com/post/why-saas-is-like-walmartInterview referenced in the episode:https://youtu.be/XXJpk14PQkA — Increasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

How do modern business empires resemble the Mongolian Empire assembled by Genghis Khan and his descendants?And why is it important, as an investor, to identify these empires?For a transcript and images referenced in the show, please visit:https://www.hellerhs.com/post/why-empire-building-is-importantIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

“In the next three to five years, every brand will have a Roblox strategy.”Quite an interesting statement from Roblox's VP of Brand Partnerships, Christina Wootton!In this episode we explore the opportunity for Roblox to build an advertising business and dramatically increase its monetization.The images and video segments referenced in this episode are at:https://www.hellerhs.com/post/roblox-the-coming-ad-titanCheck out our Episode 10, Investing in the Metaverse, for a primer on Roblox.Increasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

Almost a year after I asked the question, is the answer closer to a "yes"?What can the city do to ensure it succeeds? Listen in to find out.As always, a transcript is available at: https://www.hellerhs.com/post/could-miami-become-a-world-class-tech-hubIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

How do we think about investing at Heller House? This episode explores how we think about our companies, the markets they operate in, valuation, and much more. We discuss our values, alignment of interests, mission and goals.A transcript of this episode is available here: https://www.hellerhs.com/how-we-thinkIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

Klarna, Affirm, and AfterPay are taking an increasing share of ecommerce payments by offering buy now, pay later (BNPL) to consumers. We take a close look at Affirm, and how it's actually a really old idea whose time has finally come.A transcript is available on our site: https://www.hellerhs.com/post/the-bnpl-revolutionIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

Blake Scholl, the founder of Boom Supersonic, likes to say that there are only two places in the world where you can find a supersonic airliner: in a museum, and in Boom's headquarters. In this episode, we talk about this interesting company that is trying to finally bring back supersonic commercial flights.A transcript is available here: https://www.hellerhs.com/post/boom-supersonic-getting-there-in-half-the-timeIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

Today's episode is called GEICOs of the 21st century. The big idea I was trying to communicate to my investors at the time was that I was evolving from pursuing investments in “cheap” securities, to instead pursuing investments similar to GEICO when Ben Graham invested in it in 1948. Using Graham as an example was important, since my investor base was more traditional, value investor-minded. It's also kind of ironic, of course, since Graham made more money from a “growth” investment than anything else he did put together. I dislike the labels “growth” and “value” because I think it's a false dichotomy. To me, “value” just means buying something for less than it's worth. The growth moniker just means that I'm willing to believe in the company's future growth, and that growth is what allows me to buy it today for less than what it'll be worth in the future.The second reason why using Graham as an example is ironic is that Irving Kahn famously made a study of Graham's returns and found out he would have underperformed the market if he hadn't invested in Geico.When I first published this letter—it came out in August 2018—it made the rounds on twitter, and was even quoted in a book. I think today—three years later—not only does it hold up well, but the framework set forth here remains as relevant as ever, as we look towards the next technology adoption curves: the metaverse, the entire universe of crypto assets, enterprise software, and more. I hope you enjoy it.A transcript of this episode is available here:https://www.hellerhs.com/post/geicos-of-the-21st-centuryIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Increasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Learn more about Heller House https://www.hellerhs.comFollow Marcelo on Twitter https://twitter.com/MarceloPLimaSubscribe to our email list https://www.hellerhs.com/subscribe 

Are things getting better, or worse? It feels the answer is "yes" — some things are getting better, and others clearly worse. In this episode, I argue that we should focus on the three most inflationary items in our country: housing, healthcare and education. And to deflate these, we need to BUILD — more housing, more healthcare disruptors, and more ways of educating.Here is the post with links and tweets referenced: https://www.hellerhs.com/post/how-should-we-measure-progressIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email list

What is the metaverse? Its full expression will be a persistent, immersive virtual reality. We will shop in the metaverse; we will hang out with friends; play games and sports; and learn about ancient Rome not by reading about it in a book, but by being there in person in a photorealistic Rome filled with non-player characters, like a video game. We will work in close collaboration with colleagues from around the world through lifelike avatars. Listen in for a discussion of these topics and the companies that'll benefit from them. A transcript of this episode is on our site at https://www.hellerhs.com/post/investing-in-the-metaverseIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email list

In this interview with John Rotonti of The Motley Fool, we really cover the waterfront. We talk about portfolio construction, valuation, and discuss the following companies: Shopify, Wix, Slack, PayPal, Square, Twilio, Roku, Spotify, and Zoom. We also talk about the ecological approach we use, where we think of companies as organisms competing in a Darwinian jungle.A transcript of this interview is on our website, at https://www.hellerhs.com/post/valuation-portfolio-construction-and-lots-of-companiesEven though this interview originally aired in October of 2020, I think it remains incredibly relevant, and I hope you enjoy it.Increasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email listYou can watch a video of our chat here. 

This week we are back with another conversation with my friend Ryan Reeves, this time on Lemonade ($LMND). We talk about the bull and bear cases for the company, the financial model, the importance of using imagination when thinking about the future, and what I think is the most interesting part of the conversation, competitive advantages or moats. A transcript of this conversation, with links and photos, is at https://www.hellerhs.com/post/more-lemonadeThis episode aired early last month on July 6, 2021. I hope you enjoy it.Increasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email list————————————-You can find Ryan Reeves's excellent podcast here.

In this interview with Ryan Reeves, which originally aired on Nov. 25, 2019, we go deep into a discussion on Shopify and Slack, the competitive landscape with other ecommerce and collaboration solutions, and much more.You can find a transcript of our conversation here: https://www.hellerhs.com/post/shopify-slack-and-more-on-the-investing-city-podcastIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email list————————-You can find Ryan's excellent podcast here.

As investors, we must keep an open mind, but most people resist new ideas. In this episode, which originally aired in the 7Investing Podcast, Matthew Cochrane interviews Marcelo P. Lima about keeping that mental flexibility; how to learn new things; how to value fast-growing companies, the dichotomy between missionary and mercenary management teams, and much more.A transcript of this episode is at https://www.hellerhs.com/post/discovering-innovative-companies-with-marcelo-limaIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email listYou can learn more about 7Investing here.

How did the internet fundamentally change business? It's all about zero marginal costs, and playing a different game: blanket the world, capture customers, and only then, monetize them. We discuss Zoom, Slack, Atlassian; talk about Ben Graham's investment in GEICO, in 1948; how GEICO was a disruptive innovator in the Clay Christensen sense; what factors made it so, and how can we identify similar companies today, and much more.Even though this interview originally aired on The Acquirers Podcast with Tobias Carlisle, I'm particularly pleased with how it turned out, because a lot of our discussion remains relevant today.A transcript of the episode is available on our website at https://www.hellerhs.com/post/growth-underwriter-marcelo-lima-on-valuing-saas-businessesIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email listIf you'd like to check out Tobias's excellent podcast, head over to https://acquirersmultiple.com/podcast/

How does innovation work? How early are we in cloud computing? What are the next computing platforms? In this wide-ranging discussion, Todd Peters interviews Marcelo P. Lima about these topics and much more.A transcript of this talk is posted at https://www.hellerhs.com/post/on-innovation-our-portfolio-and-moreIncreasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email list

Increasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email list————————————————On Avoiding Technologyhttps://www.hellerhs.com/post/on-avoiding-technology

Increasing Returns is a podcast by Heller House. We apply the principles of value investing to the industries of the future.Links:Heller HouseMarcelo P. Lima on TwitterSubscribe to our email list————————————————Buffett's World War II Debuthttps://www.hellerhs.com/post/buffett-s-world-war-ii-debut

What is a franchise, and when does it turn into an ordinary business?This question was posed by Buffett many years ago. With the disruption wrought by the internet, many existing franchises are being destroyed... but many new ones are being created.This episode is a reading of our original post here: https://www.hellerhs.com/post/from-franchise-to-ordinary-business

Hello, my name is Marcelo Lima and I'm an investment manager at Heller House. This is our podcast, Increasing Returns.The name Increasing Returns is inspired by W. Brian Arthur's essay called Increasing Returns and the New World of Business, from 1996. That essay explains why the internet has completely upended the world of business and changed the rules for investors. I'll have a lot more to say about this in a future episode, but for now, welcome to the show. I hope you enjoy it.