ANET and Tinker

Tinker,

You where in just 2 stocks (NVDA and SHOP). On the NPI board I read that you really like ANET. I’m curious if you sold SHOP to buy ANET and if you’ve increased your number of positions beyond 2 or 3…

Chris

3 Likes

Chris,

I have decided (but seem to have slipped a bit) to not make my trades public in real time like I use to. But since I did bring this one up, yes, just NVDA and ANET at the moment. I did put all my SHOP money into ANET. Reason being is that 100G is just starting to roll out, and if ANET was eating Cisco’s lunch at 10 and 40GB, ANET is now the leading vendor for 100G switches in terms of marketshare, not to mention they are just starting with the router functionality. So it is an inflection point for ANET, and thus I had to do it.

Regret it…every day. But sticking with it.

Tinker

10 Likes

I did put all my SHOP money into ANET…

Regret it…every day. But sticking with it.

It’s working out today, at least. Interesting move. Why didn’t you just put half of your SHOP in ANET?

Chris

Reason being is that 100G is just starting to roll out, and if ANET was eating Cisco’s lunch at 10 and 40GB, ANET is now the leading vendor for 100G switches in terms of marketshare, not to mention they are just starting with the router functionality. So it is an inflection point for ANET, and thus I had to do it.

I suggested that SHOP might be at an inflection point too:

http://discussion.fool.com/shop-valuation-32837128.aspx?sort=use…

The reason being acceleration in new merchants coming to SHOP. We will find out in about 5 weeks whether this continues to be the case. I wouldn’t want to be out of the stock if it is the case…

Chris

5 Likes

Why didn’t you just put half of your SHOP in ANET?

Chris

Trust me…have been working on him to broaden his stock portfolio…to no avail as yet.

Tinker has a great nose for stocks…one the best IMO. I don’t think it was an issue of not liking SHOP, rather, it was more of a valuation concern and the feeling that the opportunity might be greater with ANET at this particular time…being that he is super concentrated right now.

So it takes a great stock to unseat the few he owns…and so you can see the level of detail we go through to truly understand the businesses, TAM, competition, etc.

Quite honestly Chris, I do think this dovetails beautifully with your excellent posts and financial summaries…whether we are discussing TWLO, SHOP, NVDA, ANET, NTNX, etc…these NPI threads come at the issues from numerous different angles and analysis…and somehow, in that process, we arrive at conclusions (not always the same either)…but most everyone finishes this with a pretty understanding of the investment potential and risks. It is largely driven by Tinker’s passion for investing…something I also think you quite clearly have.

Saul is fortunate to have you on this board…hope you will continue to visit the NPI as well.

Best:
Duma

23 Likes

what is this NPI board? I tried searching for it but came up empty.

thanks,
EThan

New Paradigm Investing

http://discussion.fool.com/new-paradigm-investing-114933.aspx

New Paradigm Investing

I have decided (but seem to have slipped a bit) to not make my trades public in real time like I use to. But since I did bring this one up, yes, just NVDA and ANET at the moment. I did put all my SHOP money into ANET. Reason being is that 100G is just starting to roll out, and if ANET was eating Cisco’s lunch at 10 and 40GB, ANET is now the leading vendor for 100G switches in terms of marketshare, not to mention they are just starting with the router functionality. So it is an inflection point for ANET, and thus I had to do it.

Regret it…every day. But sticking with it.

Can you clarify what it is you regret, ie- selling SHOP, or buying ANET, or something else?