A friend of mine recommended I read Blueprint to a Billion. I’m glad I did. The book goes into detail analyzing the fastest growing companies since 1980, in particular those companies that reached $1 billion in revenues the quickest. Of the 7,454 companies that have gone public since 1980, 25% have failed (no longer trade), and only 5% (387 companies) have made it to $1 billion in revenues. These 387 companies are called Blueprint Companies. Thomson interviewed hundreds of upper level management teams that are/or were part of these top 5% companies to see what set their businesses apart from the rest.
The book goes into detail of common quantitative and qualitative attributes of blueprint companies. Thomson outlines three distinct growth trajectories to $1 billion in revenues that were common after these companies hit their inflection points: Four year (ie: Broadcom, Cisco, Google), Six year (Microsoft, Starbucks), and Twelve years (Fastenal, Tractor Supply, Fifth Third Bancorp). Blueprint companies also had similarities when it came to marquee customers/partners that got them on the map, internal management styles, board makeup, and other more qualitative attributes.
As a full time investor in micro cap companies I am always betting on the jockey. I was most intrigued learning about some of the more qualitative similarities (ie: management related) amongst the blueprint companies. I think many other micro-small cap investors will find value reading this book as well.
Bottom Line: Read It! (Buy it Here)
I also interviewed David Thomson [HERE]
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