Duolingo is a fantastic business riding a strong secular trend. As globalization accelerates—through international relationships, education, and immigration—the demand for language-learning platforms will continue to grow. More people from diverse backgrounds are seeking tools to bridge language gaps, and Duolingo is well-positioned to capitalize on this shift.
Beyond the trend, their gamification strategy makes the product highly engaging, increasing retention and stickiness. Their AI implementation is also impressive, driving efficiency, enhancing content, improving user engagement, and reducing costs. The freemium model is well-executed, attracting a massive user base while converting a growing percentage into paying subscribers.
That said, I do question the strength of their moat—the product is great, but switching costs are low, and competition in education is fierce. Still, overall, it’s an excellent business with strong long-term potential.
Lululemon and Evolution were 2 positions I still believe will do well in the next 5-8 years, but I have higher convictions in other positions. I closed those two to make room for the higher conviction idea, ASML back then.
There’s nothing wrong with both businesses, to be clear, but it solely came down to having a higher conviction on another business.
Feel free to reach out if you have other questions. 😄
This was a superb update. I unloaded LULU in December as well because there are safer plays with similar upside.
What do you think about Duolingo?
Duolingo is a fantastic business riding a strong secular trend. As globalization accelerates—through international relationships, education, and immigration—the demand for language-learning platforms will continue to grow. More people from diverse backgrounds are seeking tools to bridge language gaps, and Duolingo is well-positioned to capitalize on this shift.
Beyond the trend, their gamification strategy makes the product highly engaging, increasing retention and stickiness. Their AI implementation is also impressive, driving efficiency, enhancing content, improving user engagement, and reducing costs. The freemium model is well-executed, attracting a massive user base while converting a growing percentage into paying subscribers.
That said, I do question the strength of their moat—the product is great, but switching costs are low, and competition in education is fierce. Still, overall, it’s an excellent business with strong long-term potential.
Could I read up somewhere on the reason you sold Lulu and Evo? I own both.
Hi Niels! I’ll sum it up here.
Lululemon and Evolution were 2 positions I still believe will do well in the next 5-8 years, but I have higher convictions in other positions. I closed those two to make room for the higher conviction idea, ASML back then.
There’s nothing wrong with both businesses, to be clear, but it solely came down to having a higher conviction on another business.
Feel free to reach out if you have other questions. 😄
Very clear. I did something similar with LVMH. I sold it for stocks in companies with more potential.
Hoping you hit that 100-bagger, brother 👏🏻
Which one did you buy? 😎
Evolution, Sofina and Fractyl health. The last one is a complete gamble. Could be a 0-bagger or a 100-bagger, we’ll see.
LVMH shouldn't be ignored and you need to get back in. It is a complete monster.
Love the conviction in Amazon
Love the business! Will remain the cornerstone for my portfolio for the future.