John says he hates hot deals because it means the company is solving a currently fashionable problem. As a result, the company is doing its financing while it’s small, before it’s achieved a dominant market position.
John would much rather invest in a company that is solving a problem a few years out, so that it will have time to grow *before* the rest of the market catches on.
I couldn’t agree more. I love when someone articulates a point I’ve understood intuitively, but not intellectually.