Gordon Reid

The market is unwinding the premium valuation of recent years as confidence grew and FOMO. Now, we have uncertainty around Trump 2.0 with valuations falling from the low-20s to the high-teens, more of the historic norm. So, he's not worried, but don't expect is to bounce back to that premium. It takes a while to build confidence, and it's healthy to see the air come out of slightly inflated valuations. A year ago, he started to sell his Mag 7; by year's end he held 24% exposure vs. 35% in the S&P. Though great businesses, nothing grows to the sky. US profit margins a year and a half ago peaked at 13.1% and now aren't far off; historically, they've been far less. Corporations have learned to adapt and perform well. Tariffs: will they be that punishing and will be Washington be so tone deaf to the US economy and push it into recession? He thinks not. We know Trump's playbook by now: bully, scare tactics and threats. The market sees this and is pulling back. Still, it's a tail risk.

It spiked it last summer over the AI buzz, but the bloom is off the rose over AI adoption. Historically, hardware companies don't have much stickiness; there's more opportunity in software which can adapt.

Excellent company. Not worried about this weakness. Trades at a reasonable valuation vs. its growth rate. Buy it for the long term. Today, they bought a cybersecurity company and will likely be Trump's first test on anti-trust--watch this.k

He did well owning this, but sold around 33x PE, too rich. It went higher on momentum, but has sold hard lately. He's looking at it now. A very good company in data centre expansion. Lots of growth, but would buy at a lower PE.

A cornerstone company in tech, but there's huge competition in tech and Cisco remain one step behind. Are better companies.

It's cheap, but for a reason. Sees no growth, despite a big acquisition. Consider Merck or Amgen for perhaps more growth.

It's doing very well in this environment, given their cash level and reputation. But they trailed in 2023-4 when they were building that sword. A two-edge sword. If there's a recession, this will look very good, but if this is a typical correction and return to new highs, we'll see what they do to the cash. Buffett probably has one or two targets in his sights.

A tough question. Chips are highly cyclical. He was cautious on this when it was soaring given its high valuation then and the future was cloudy--what is the evolution of AI? We're starting to see questions on that. Is investment in data centres an overreach? He's on the sidelines.

Expensive at 28x PE with tepid revenue growth. They're talking cost cutting, which is encouraging for profits, but it's making up for fundamental weakness.

China's comeback didn't happen in the past year while EV adoption has slowed, but will still happen. The copper spot price is up 25% this quarter. So, FCX will have a great quarter, given their link to that price, but the market won't anticipate that due to fear of tariffs and the impact on copper prices. Will copper be a protected mineral? Tariffs on foreign/Chinese copper? Don't know yet, but long term the secular tailwinds are intact. Copper usage will double over 7 years.

It wasn't seen as an AI play until their partnership with Microsoft. Shares then rallied. He sold around $235 after the PE jumped as its value dropped. 

Trades around 23x PE with a strong growth rate. One in two humans interact with a Meta product everyday. An excellent place to be.

Fantastic, growing fast, yet trades at only 18-20x PE. Low-capital and innovative with smart managers. Diversified geographically. Booking.com is the cornerstone, built on European mom-and-pop hotels that grew successfully from there. He first bought this 30 years ago when this was Priceline.

Owns GM instead. Ford lacks the cash of GM, among other metrics, and lag GM in this sector.

Is held back by a misconception that ride-sharing and autonomous driving will dislocate Uber. Wrong. Uber already partners with Waymo, so will participate in that. Uber is undervalued.