FTNT - Fortinet Inc.

Organic growth is reaccelerating due to hardware refresh cycle and it is executing well with buybacks, but valuation is now elevated (forward price-to-free-cash-flow around 40x). He is a large shareholder and won't sell, but does not think it is the right time to buy.

He bought the dip heavily and made Fortinet his largest position, expecting AI to accelerate cyber attacks and drive a massive refresh cycle in security demand. He has since seen strong gains and believes the demand cycle is real and ongoing.

Highest-conviction position; cybersecurity industry expected to skyrocket; valuation rich but not crazy; would only sell around 80x forward P/E or if story stops accelerating.

Cited as a company he is buying today with the ability to grow revenue at 15% per year, having done so for many years.

Largest conviction position with spectacular margins (80% gross, 30% operating), accelerating revenue growth, smart buybacks, high insider ownership, and a booming cybersecurity trend.

Highlighted as a green-flag example in the presenter's portfolio because the founders/CEO/CTO own about 15% of the company, aligning incentives with shareholders.

The creator holds Fortinet as his largest position and is not selling because the AI-driven refresh cycle is still early, product revenue growth is reaccelerating, and valuation is not yet extreme. He is not a buyer at current prices but does not see a reason to sell until valuation reaches ~70x EV/FCF or the refresh cycle decelerates.

Cited as example of founder-led management with high insider ownership (the Xie brothers own ~15% combined).

Mentioned as a sleeper; AI/security story; pulled back to solid levels.

Biggest position; reported extraordinary earnings and stock rose; remains core holding.