Hi strelna.
I have no position in Guidewire, but I do have a position in a “competitor”, Ebix. I put “competitor” in quotes because both companies sell software to insurers, as I understand it, but I’m not sure that both companies compete for the same projects. I covered Ebix for TMF for a while, but dropped that coverage a few years ago, so my commentary may not be totally current. It is my understanding that Ebix focuses on setting up exchanges, but I’m not sure about Guidewire’s fit in the insurance world.
Ebix’ CEO was born in India, I’m pretty sure, and a lot of his workforce is based there, although the company is based in the USA (near Atlanta, if I recall correctly). The CEO, Robin Raina, is a good businessman, although at times he can appear to be a bit eccentric. Recently, he’s been working on expanding the business in ways that support government growth initiatives in India, so the company is becoming less of an “insurance software” pure play.
I’ve held my EBIX position for almost a decade and it is currently worth roughly 6.5 times what I paid for it, although I’ll readily admit it hasn’t been a smooth ride. The company is still relatively small, with a market cap below $2.5 billion.
Guidewire went public while I was covering Ebix, and I spent some time with its S-1 SEC document (initial securities registration). I don’t specifically remember why I decided against GWRE at the time, but it was probably a combination of (1) lack of TMF imprimatur, (2) lack of a track record, since it was an IPO, and (3) I felt as if it didn’t diversify me well because EBIX was already a large holding. So, basically, my rejection of GWRE was more for personal reasons than based on what I learned way back then (and have mostly since forgotten).
While I’m actually caught up on this board (not always the case) and posting, I wanted to add my name to the list of people who appreciate all the great discussion that occurs. I was just telling someone the other night that Saul’s approach has influenced my investing style for the better. I’m sure that Saul would feel as uncomfortable with my portfolio as I would with his, but I’ve copied a page or two from his game plan, to my benefit, and in ways that fit comfortably with my investing style. But it isn’t purely Saul that keeps me reading. There are many great investors here. Kudos to Saul for creating the forum and being so welcoming of talented investors (and those seeking to become more talented). And thanks to all of you for your active participation.
Thanks again, and best wishes,
TMFDatabaseBob (long: EBIX; no position in GWRE)
See my holdings here: http://my.fool.com/profile/TMFDatabasebob/info.aspx
Peace on Earth