Check Point Software Tech (CHKP-Q)

This sector has good secular growth, lots of cybersecurity issues, governments are investing a lot. Has done well.

He used to own CHKP. Both PANW and FTNT are strong businesses, market leaders in the space and taking market share away from CHKP.

Challenge is that PANW and FTNT are really strong in this industry. Good for the consumer, but may not be good for the businesses in that space. At 46x PE, PANW is really expensive, growth needed to justify that valuation is substantial, high valuation keeps him on the sidelines.

Look at the space as a whole to see if you want to be involved, rather than choosing just one player. Does like the aspect of customer "stickiness" in that once a customer signs up, switching costs are high.

Cybersecurity has become such an important area. Governments around the world are looking as it. Huge investments in coming years at government and corporate levels. Strong secular growth. Need has increased because, since Covid, people no longer work in just one spot.

Likes this space (security), but his issue is its valuation. Tech is at highs now, so find a better entry level.

In the face of increasing competition, restructured its businesses. Reported extremely good numbers, stuck to guidance. Might explain why PANW selloff today not hurting them as much.

Next to semiconductors, cybersecurity is one of the great secular growth areas. Hacks are proliferating. Making new highs. An area you have to own for the next several years. 

IT security solutions provider. Last year, rested on their laurels. Change in management, upped game. His 12-month price target is $151.50. No dividend.

In cyber security. Offers stable growth and is well-managed. Doesn't like that they pay no dividend. It's a mature company, good. Low beta. Perhaps buy this in a recession. Prefers this to Palo Alto.