Investing Rationale

As it revolutionized not one, but several industries, Amazon's stock went from $.08 to $123 (as of end of day, June 7, 2022, after adjusting for splits) in 25 years. Invest $10,000 at or shortly after the IPO, and two decades and a half later, you find yourself inheriting a fortune of $15,375,000. Essentially, one dollar turns into $15,000. You read that right! All you had to do back then, and we have to do now, is pick the right horse and never sell. Hold, no matter what. Bears, wars, revolutions, bugs and viruses, recessions, terrorism, inflation, presidents, hardly make a dent.

Let's find the next Amazon. We'll make some mistakes along the way and apologize for the errors of our ways. But we sure hope to find some incredible winners in the process and help you, dear, create true wealth, aka, build a fortune. It's Ok to start small. Think of it this way, all you need is a few dollars. Only our ambition shall not be tiny, hope must stand tall.

Let's be patient, ignore the vagaries of bear markets (not only taking them in stride, but also profiting from the collapse in prices to buy jewels for cheap), and let both businesses and stocks compound. Never sell, or at least not before you have found your 1,000 baggers. 25 years is a long time. Let's live a long life then, as many great investors and fund managers do (think Warren Buffett, George Soros, Carl Icahn, etc.) and help others do the same. All on the same boat. As anthropologist Ashley Montagu puts it, "The idea is to die young as late as possible." 

The Case for Ginkgo

Please, check out https://seekingalpha.com/article/4540718-ginkgo-bioworks-is-a-strong-buy, an article we contributed on Seeking Alpha that lays out in detail why we believe Ginkgo Bioworks (DNA) qualifies as a promising investment.

Ginkgo leverages its platform to program cells on behalf of its customers. Cell programming has the potential to be as ubiquitous in the physical world as computer programming has become in the digital world. It is expected to transform all industries Biology grows. Biology is programmable and offers the tools to transform how humans make stuff and grow products. Better products might be more sustainable, have more stable and resilient supply chains, have higher quality and more consistency, etc. 

The company's Foundry wraps proprietary software around core cell engineering workflows to design, write, insert, test DNA, and leverages data analytics to inform each iteration of design. The Codebase includes both physical (engineered cells and genetic parts) and digital biological assets, and accumulates as Ginkgo executes more cell programs. As the platform scales, Ginkgo has observed a virtuous cycle between Foundry, Codebase, and the value delivered to customers. Key to compounding is Knight’s Law, which stipulates that Ginkgo has roughly tripled the output of its automated labs while reducing costs by 50 percent every year since it started measuring it around 2015. 

The market opportunity seems immense. For several decades in the computing industry, software ran entirely in local environments: companies built and ran their own servers and customized their applications. The dominance of software-as-a-service (“SaaS”) software and cloud computing over the past decade has demonstrated the value in having common architectures. What users may have sacrificed in customizability, they more than gained in efficiency, scalability, and innovation. Ginkgo may usher in a similar transition in cell programming.

The value of the resulting applications will measure in the trillions of dollars. Given the breadth of application areas and the potential of biology, Ginkgo believes, and it seems difficult to disagree, that the end markets for bioengineered products will be enormous. 

Ginkgo may constitute a significant wealth creation opportunity for long-term investors. The firm qualifies as a 

1. Terrific technology Incubator endowed with scaling economics and wealth compounding capabilities dynamics, with a
2. Multiplicity of applications and verticals served and revenue sources aligned with customers prospects.

Again, we invite you to check out our in-depth analysis including platform, markets, financials, valuation, etc., at:

https://seekingalpha.com/article/4540718-ginkgo-bioworks-is-a-strong-buy

Price at time of publication: 

$3.09 quote: Jul 14, 2022, 4:10 PM ET