🐬 Simon's Portfolio: https://www.strategysprints.com ⚡️ Free Tools: https://www.strategysprints.com/tools 💎 The Investing Show Newsletter: https://theinvestingshow.beehiiv.com/ The AI Revolution Is Here. But What’s the Smartest Way to Invest Without Taking Big Risks? In this video, we explore whether Arista Networks (ANET) is the ultimate “pick and shovel” play in the AI revolution. While most investors are chasing risky AI startups, we’re breaking down a highly profitable, fast-growing, and essential infrastructure company powering giants like Microsoft and Meta. What You'll Learn: Why Arista Networks could be a safe compounder for the next decade How it fits the 15% profitability and growth rule What makes it defendable — from switching costs to client loyalty Full SWOT analysis, competitive risks, and hidden opportunities Our investment thesis, entry points, and real-time price alerts Want to invest with sharper tools and sharper minds? Chapter Markers 0:00 - AI Revolution Introduction: Pick and shovel investment opportunity 0:40 - Analysis Framework: Use case, profitability, growth, moats, SWOT 1:00 - Use Case Examples: Meta and Microsoft as major clients 1:25 - Microsoft Deep Dive: Cloud scaling to world's #2 position 2:42 - Profitability Analysis: 27.6% margins (incredibly profitable) 3:52 - Growth Analysis: 27% growth rate with upward trend 4:15 - Competitive Moats: No network effects, but strong loyalty/switching costs 5:15 - Loyalty Moat: EOS deployment creates massive migration costs 5:47 - Barriers to Entry: 18 months to land Microsoft as example 6:50 - SWOT Analysis: Strengths, weaknesses, opportunities, threats 7:12 - Client Concentration Risk: 35% from tech giants 8:10 - Investment Thesis: Essential pick-and-shovel play for AI networking 8:37 - Valuation & Position: DCF shows $82 fair value, entered in 60s SOCIAL MEDIA ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ 🐦 X: https://x.com/simonseverino 👋 LinkedIn: https://at.linkedin.com/in/simonseverino 🎉 Free Community: https://www.strategysprints.com/offers/q5PdV9FV DISCLAIMER ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ I am not a professional investor and have never claimed to be. I'm a private investor sharing my experience of what I've learned, where I have had success, and where I've had failures. I share my thoughts on investing and performance with transparency. My approach and goal to investing is to buy high-quality long-term investments in world-class businesses that I call "compounders". I view my investments as businesses, not as stocks. I am a strategy advisor. Over the years as an advisor, I compounded my knowledge. I take the same iterative learning approach to my study of investing. I study investing as a craft in the continual pursuit of being better. I will make mistakes in investment decisions from time to time. Results are not guaranteed. Please do not blindly follow me into any investments, and make sure your portfolio and investments are built around your specific income, risk tolerance, personality, timeline, and overall circumstances.