Make 10X Investments With Startling Accuracy  | | Luke Lango | Dear Reader, Hello. Luke Lango here again. In yesterday’s letter, I broadly explained to you the structure of our unique hypergrowth investing approach – what it is, how it works, why it works, and what it can do for you. Today, I’m going to show you our hypergrowth investing approach in action. Let’s rewind back to early 2017… We started to notice that cash – once the dominant form of payment – was rapidly disappearing from the world. Instead, consumers were increasingly starting to use credit cards, debit cards, e-wallets, and apps like Venmo to pay for goods and services. Yet… we looked around and started to notice that many small- to medium-sized merchants and retailers were ill-equipped to handle this enormous pivot from cash to non-cash payments. In the neighborhoods we visited, “cash only” signs were everywhere – and those signs were scaring away young consumers who simply don’t carry cash. This discrepancy between payment market demand (everyone pivoting to cashless payment methods) and payment market supply (many merchants and retailers remained “cash only”) led to us to do a deep dive into the numbers here. We quickly discovered that there is indeed a massive shift happening from cash to cashless payments, and that retailers and merchants would need to undergo a massive “upgrade” to accommodate this enormous shift. And so… we stumbled upon the “cashless revolution” megatrend – a trend wherein cash is quickly becoming antiquated, and adoption of cashless payment processors and services would soar. Step one: Identify an emerging investment megatrend. Done. Onto step two: Identify the most innovative cashless payment processors in the world. That’s when we found Square (SQ). At the time, Square was a bumbling payment card reader that Wall Street was largely lukewarm on… But, when analyzing Square, we quickly noticed something that stood out: a track record of relentless innovation. Specifically, from 2010 to 2017, Square had built out a software services ecosystem that provided payroll assistance and management tools to merchants and retailers… They had expanded into the e-commerce channel, and developed capabilities so that its customers could use Square to facilitate digital sales… They built out mobile e-payment processing capability. In other words, Square had aggressively innovated from 2010 to 2017, and in so doing, launched multiple new products, services, and features, which dramatically expanded the company’s growth runway and improved the platform’s value proposition. On the idea that this innovation would continue, we figured we had found the most innovative company in the cashless revolution, and therefore, we told readers to buy Square stock. Since then, Square’s stock has risen more than 10X – as its relentless innovation continued with the launch of Square Capital and Cash App, enabling the company to sustain enormous growth, compounded year after year, which has driven equally enormous gains in Square’s stock price. 
That’s the power of hypergrowth investing. When executed correctly, it results in 10X winners in record time. So… what megatrends and stocks do we have our focus on now? In tomorrow’s letter, I’ll outline some of the major hypergrowth megatrends we are paying particularly close attention to in 2021. We think these megatrends will be much, much bigger than the cashless revolution. More on that tomorrow… Regards, Luke Lango Editor, Hypergrowth Investing | 
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