Confused why cloud stocks are performing so well even though we are admist a global pandemic?

Hitting everything.

Nearly.

“Robert Smith, the founder and CEO of Vista Equity Partners is arguably one of the Top 5 investors alive. At Vista he manages over $57 billion in equity commitments, oversees a portfolio of 65 enterprise software companies, and has completed over 400 transactions representing $130.0 billion in transaction value. He’s returned ~31% / year net to investors since starting the fund in 2000; and we think you’d be hard pressed to find anyone with a track record like that across PE, Public Markets, or Venture in a systematic and replicable process; particularly at that scale.”

“Smith famously said, “Software contracts are better than first-lien debt. You realize a company will not pay the interest payment on their first lien until after they pay their software maintenance or subscription fee. We get paid our money first. Who has the better credit? He can’t run his business without our software.””

https://medium.com/@John_Street_Capital/this-time-its-different-maybe-e0ae65b458dc

Thanks to Howard Lindzon for sharing.

Makes sense when you see it in black & white.

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