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COMMENT
Finding good buys. There's always something to buy. Broad indices have done really well this year, so it's trickier on a whole to find opportunities. Broad indices have masked tumult under the surface. Pain in tech and tech-enabled, such as clean tech and renewable power. He's finding opportunities in higher growth names that he thinks have sold off too much.
COMMENT
Sectors in focus. Tech, renewable energy, food and agriculture. When people talk about sustainability, the conversation usually centres on energy and utilities. But the food industry is responsible for over 25% of GHG emissions. He's looking for companies using tech to feed the world as well as reduce emissions. People will look at the world more and more through this lens.
HOLD
One of his top picks in the industry. Story is clear cut. Completely dominating GPU, with machine learning and AI. The ARM acquisition will get done over time, and he sees the value proposition for consumers. Has had a great run, but he's comfortable with it on a 5-year horizon.
computer software
processing
HOLD
Won't get into too much trouble holding it over time. He prefers higher growth exposure, such as semis and FANGs. Not too much risk owning it. It's big and established, akin to IBM.
electrical
electronic
BUY
Languished for a while. Every day it doesn't move, the cheaper it gets. Good buy at current levels. One of the better value propositions among the FANGs. Building on e-commerce, a tide that will lift all boats but not displace AMZN. Cloud is chugging along, and the ad business is growing quickly.
specialty stores
COMMENT
Growth of e-commerce. Packages from the likes of Amazon never stop arriving, and this won't abate anytime soon. People will go back to stores, but online shopping is so very convenient. With the AMZN membership, you're subsidizing your shipping costs. We don't want to see ourselves paying for shipping, so the free shipping incentivizes us to keep buying and buying. As people learn how efficient it is to order things online, the more they will. AMZN has no competition on logistics.
DON'T BUY
The conversation is centred around climate. Shell and others are doing as much as they can to shift to renewables. Look at clean power companies instead, as they won't have this overhang. The story is a lot easier when you're not fighting the uphill battle of being characterized as an energy company.
integrated oils
PAST TOP PICK
PAST TOP PICK
(A Top Pick Aug 07/20, Up 15%) Great company. Great value for consumers. Membership fees subsidize cost of goods. Takes a low growth margin to provide great prices to consumers. 90% membership renewal rate. Well positioned going forward. Long-term hold. Consumer staple + cyclical exposure.
department stores
COMMENT
Investing thoughts. Common misconception that you have to have a contrarian view to make a lot of money. This is just plain false in a lot of cases. FANG stocks are a good example. He likes them, as they're extremely profitable, great businesses, and have great ecosystems. People may look at them and say it's too easy, too many people like them. At the end of the day, it's about growth, earnings and delivering. Sometimes, investing can be this simple.
