Table of contents:
Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.
Prerequisite readings:
After identifying a fast growing industry that CAGR is growing higher than your required rate of annual returns.
For example, the Cyber Solutions segment under Cybersecurity industry.
The next step would be to identify the best products / services within the segment
and then find out the company that is providing them.
Customers' reviews will tell if a company makes great products.
How to identify the best products in a certain segments?
1) Start with using AI-powered chatbots to gather information
It appears that cybersolutions (a segment from cybersecurity) is one of the fastest growing industries in the nex few years (based on statista.com).
What are some of the publicly listed companies that have the best product ratings & are generating a significant amount of revenue (in % wise) from the listed industry above, pls provide response in a table format.and you should be getting a response like this:
2) Confirm the findings on customer review sites
It is better to find reviews from the products' end-users themselves (in oppose to reviews from reviewers sites such as Tomsguide.com/ cnet.com which *may* be biased, because companies may pay the reviewers to provide better ratings).
Here are some of my favourite platforms to find products' reviews from Customers.
For software products, use G2.com
For softwares, G2.com is the most reliable one I use.
Similarly for a start, you can use BingChat to gather an overview by using a prompt like this
Please help me gather all the product reviews of Fortinet from g2.com in a table format,
that shows the amount of customer reviews for each product too.And you should get a result like this
Or you could head over to G2.com directly and look at the product list page, which will show all the reviews of their products.
It is also useful to see to see how do the products rank against other players in the segment they are operating in.
to do so, click on one of the products,
and click on the segment
here, it will show you the best products within the segment
What I like to do is to use the G2 Grid view
And you can see the product's positioning based on the customers reviews received.
You will want to do this for the main products of the company which are generating (or have future potential) significant revenue.
it will be great if these products are operating in segments/ markets which are growing fast too.
For other software products which you are unable to find on g2.com.
Look at featuredcustomers.com for Company level review.
For example, Axon which provides law enforcement technology solutions do not have their products listed on g2.com, luckily featuredcustomers.com provide me the insights I need to know if the customers are satisfied with their products & services on a company level.
This is also a good to know information for companies whose products are listed on g2.com also
If the company's main offerings to their customers is primarily in the form of a mobile app, look at their mobile app ratings.
For example companies like Airbnb & Duolingo offer their services to users through mobile / tablet applications, hence it will be important to check the rating of those companies' mobile app to get a glimpse of customers' satisfaction.
For mobile app rating evaluation read more here.
Examples of sites to find customer reviews for non-software related products.
When evaluating companies which are not selling software related products, here are some of my favourite platforms to gather customer reviews.
Consumer electronics
Apparel & Fashion
Automobile
Restaurants & Retail
Google reviews (read more here)
Guideline when choosing these end-customer review sites
Opt for sites which have high traffic, as higher sample size is generally better.
you can use sites like semrush.com to check the site's traffic trend.
Summary:
To find the best product companies to invest in,
Identify fast-growing industries and then find the companies with the best products in those industries.
Use AI-powered chatbots to gather information and customer review sites to confirm your findings.
Looking for a set of checklists to identify great companies for your portfolio?
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