We flip the script. Daniel pitches Akram on a new idea - f5 Networks - and Akram plays the role of portfolio manager, hearing out and testing the thesis. While Daniel might hope you like the idea itself, this episode should be a little more educational, as we break down what makes it a good or not-so good pitch, what's missing, and what could go into the thesis next. It also highlights a lot of the challenges in both growth and value investing.
We do get into other ideas, including Dropbox, and into the state of the market and whether the Alteryx report is a warning sign.
Topics Covered
3:30 minute mark - What brought us to f5?
6:30 - The long case for F5
10:30 - How the ADC market used to size up 7:00
13:45 – The inflection point for f5
16:00 – What is the future of the ADC
21:00 – What is the competition
24:30 The nature of service revenues
28:30 – What is it exactly that f5 does here
33:00 – Revisiting value and what does a low multiple mean, and the Alteryx report
39:00 – When the numbers aren’t enough
42:45 – The research process
47:30 – The limits of value investing
49:30 – Dropbox as another example
55:30 – Growth vs. value, or story vs. numbers
59:30 – Studying Tesla
1:04:30 – Alteryx – exception or warning?
1:10:45 – The hunt for the coming inflection
1:15:30 – Covid-19 Bull market geniuses and the market climate
1:22:30 – IPOs vs. SPACs and what that says about where we are

Reading materials:
Full pitch on Seeking Alpha: https://seekingalpha.com/article/4369321
What Makes Stocks Go Up: https://dubra.substack.com/p/the-anatomy-of-stocks-that-go-up
Life Magazine - "New Kid On The Street" (scroll to 62a):  https://books.google.es/books?id=bU8EAAAAMBAJ&printsec=frontcover&hl=es&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false
Dropbox: The First Dead Decacorn - https://alexdanco.com/2015/08/24/dropbox-the-first-dead-decacorn/

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