CYBR - Harding Loevner - CyberArk Software: Well Positioned To Surf The Wave

2024-06-12 09:10:00 ET

Summary

• CyberArk issued a better-than-expected outlook for the year due to robust demand for its cybersecurity software.
• CyberArk has built a strong position in the fast-growing niche of protecting “privileged accounts.”.
• Another promising development is CyberArk’s new Secure Cloud Access offering, a small but growing source of revenue.

The following segment was excerpted from this fund letter.

CyberArk Software ( CYBR )

Charlie Munger once used a surfing metaphor to explain how a company can take advantage of a “wave”—a powerful trend or industry force—to create long-term growth. By recognizing a large wave as it forms and catching it at the right moment, he said, a surfer can ride the wave for “a long, long time.” It was 1994, and one of the examples Munger gave was Microsoft and the rise of personal computing, a wave the company would ride for the next three decades to a US$3T market capitalization. Munger, who died last year, was also known to preach patience: “The first rule of compounding,” as his famous line goes, is to “never interrupt it unnecessarily.” Finding companies poised to benefit from big waves, and allowing time for their profits to grow and compound, can have a powerful effect on returns....

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