The Razor’s Edge is an investing podcast that combines a prop trader’s viewpoint and deep-dive fundamental research to provide a unique take on the markets. The show is co-hosted by Akram’s Razor, a trader, tech enthusiast, meat lover, Marvel fanboy, battle tested activist short-seller and humble market servant, and by Daniel Shvartsman, VP of Content at Investing.com and someone who has seen thousands of investing pitches and ideas and how they play out over the past decade. The duo start with a theme or idea from Akram’s investing, then break it down to understand what goes into the idea, what could go wrong, and what else investors and traders need to know. They also interview industry leaders, executives, and other investors to get a wider perspective. The show has thousands of listeners around the world.
Episodes
Tuesday Aug 18, 2020
Tuesday Aug 18, 2020
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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