SNAP - The Rule Of 40 For SaaS Companies - Investing Strategy Returns And Alpha - Part 1

• Software companies, and specifically SaaS companies, have done extremely well in the last 15 years, outperforming the major indices.
• Valuing software companies has proven to be difficult, where unprofitability is not necessarily a sign of weakness.
• We look at the Rule of 40, an industry rule of thumb balancing high growth and profitability in software companies.
• We test the performance of stocks passing variations of the Rule of 40.
• I offer a public screener to find those software companies meeting the Rule of 40.

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