Cisco Systems, Inc.

CSCO position long Tweedy, Browne Company

Thesis

We bought shares in Cisco around 2011-2012 when it was trading at roughly 10x earnings with over $40 billion in cash on its balance sheet. Despite slower growth, we believed we were getting significant value at that price.

Did it work?

worked confidence: high

The investment thesis for Cisco was validated as the stock price increased by 614.7% over 187 months, significantly outperforming the initial valuation of 10x earnings. The substantial cash position and the perceived value at the time contributed to a successful long-term investment. This aligns with the long direction of the pitch, confirming that the thesis played out effectively.

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