Nothing But Net by Mark Mahaney Summary

Nothing But Net outlines 10 proven stock-picking strategies for long-term tech investing, drawing from Mark Mahaney’s 25 years as a top Wall Street analyst. It emphasizes revenue growth, customer metrics, and avoiding speculative trading while analyzing companies like Amazon, Google, and Netflix. The book provides frameworks to identify sustainable tech winners and navigate valuation risks.

This book suits retail investors focused on tech stocks, professionals seeking sector-specific strategies, and anyone building a long-term portfolio. Mahaney’s insights are particularly valuable for investors prioritizing fundamentals like product innovation and total addressable market (TAM) over short-term market noise.

Yes, for its actionable advice from a top-ranked analyst. Mahaney combines decades of experience with clear lessons on evaluating growth potential, spotting red flags in valuations, and avoiding common pitfalls. The focus on tech’s unique dynamics makes it a standout guide for sector-specific investing.

• Prioritize revenue growth and customer acquisition metrics over earnings.
• Invest (don’t trade) in companies with large TAM and strong product pipelines.
• Assess valuations using price-to-sales ratios and growth rates.
• Avoid stocks with declining user engagement or mismanagement.

Mahaney emphasizes four key drivers:

1. Product innovation (e.g., disruptive technology).
2. Total addressable market (TAM) size.
3. Customer-centric metrics (user growth, retention).
4. Management quality.

Companies excelling in these areas, like Amazon and Netflix, often become long-term outperformers.

Tech firms often reinvest profits into growth, making earnings less reflective of true potential. Revenue growth signals market demand, while customer metrics (e.g., subscription rates) reveal scalability. This approach helped identify winners like Google early.

Compare price-to-sales (P/S) ratios against growth rates. Mahaney warns against stocks trading at 20x+ revenue without 30%+ annual growth. Use historical precedents (e.g., dot-com bubble) to avoid overpaying.

Unlike generic guides, it focuses solely on tech’s volatility and offers sector-specific frameworks. Mahaney’s track record—ranked #1 analyst by Institutional Investor—adds credibility to his lessons on spotting trends and management red flags.

Yes. Mahaney breaks down complex concepts like TAM and valuation metrics into digestible steps. The structured 10-lesson format and real-world examples (e.g., Facebook’s rise) make it accessible for newcomers.

With 25+ years analyzing firms like Amazon and Netflix, Mahaney shares proven strategies that helped him top Financial Times stock-picking rankings. His experience with market cycles provides nuanced insights into separating hype from sustainable growth.

Some investors note the book’s exclusive tech focus limits applicability to other sectors. Additionally, its long-term approach may not appeal to traders seeking short-term gains.

Mahaney advises focusing on companies with durable competitive advantages (e.g., AWS’s cloud dominance) and ignoring short-term price swings. Historical case studies, like eBay’s decline, illustrate how to avoid volatility traps.