It has nothing to do with quality companies and 90% to do with a new industry being born..it isn't clear there won't be setbacks. One should take profits when margin of safety goes negative!
Appreciate the comment. Agreed, CrowdStrike has certainly benefited from the boom in next-generation cybersecurity offerings. Yet, they also helped create it which is a positive mark on the management team. The high quality aspects may very well follow -- hard to argue against the level of revenue growth and FCF margins. The premium valuations of the last few years have paid off. We don't always share our current moves in our public articles, but have trimmed quite a bit recently. A 10% prospective return is too low give the risks, and compared to other investment opportunities.
It has nothing to do with quality companies and 90% to do with a new industry being born..it isn't clear there won't be setbacks. One should take profits when margin of safety goes negative!
Appreciate the comment. Agreed, CrowdStrike has certainly benefited from the boom in next-generation cybersecurity offerings. Yet, they also helped create it which is a positive mark on the management team. The high quality aspects may very well follow -- hard to argue against the level of revenue growth and FCF margins. The premium valuations of the last few years have paid off. We don't always share our current moves in our public articles, but have trimmed quite a bit recently. A 10% prospective return is too low give the risks, and compared to other investment opportunities.