1/7 Since I publicly pitched this last year, I would like to disclose that I just sold $ISRG. From ~$550 to ~$950, it was a decent ride, but mostly luck tbh.
https://twitter.com/borrowed_ideas/status/1263985479445250049
2/7 ISRG remains an excellent biz, but I think market is still underestimating the potential impact of delta on recovery path for a company like ISRG.
3/7 I admit I am a little concerned about delta variant. However, it’s always hard to not only predict how the fundamentals will be affected but also how the market will react even if fundamentals are indeed impacted.
4/7 Even though I am not a believer of market timing, I want to be in a state of mind where I can maintain my equanimity to market direction. So I was looking for a company to sell in my portfolio to raise a little cash and go back to my indifference mode to market direction.
5/7 I now have ~10% cash which is the highest in the last 12 months. No plan to raise cash any further.
6/7 As ISRG trades at ~20x revenue, a slowing topline for potentially two consecutive years (and more?) is concerning to me.
Although stock went up by ~70% in the meantime, fundamentals remain largely the same or slightly worse because of potentially extended recovery timeline.
Although stock went up by ~70% in the meantime, fundamentals remain largely the same or slightly worse because of potentially extended recovery timeline.
7/7 I will remain a curious observer of ISRG and see if it makes sense to me to own this excellent biz again.
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