PORTFOLIO CHANGE
Updated approach to the AI Boom
Happy Monday,
Let’s start by looking at overall portfolio performance. I continue to be amazed by how strong the overall market has been and because we’ve been invested in AI beneficiaries, the portfolio performance has been even stronger.
We’re up 258% since august 2022 which is a CAGR of 39.25%. I do not expect this type of performance to continue and I genuinely hope investors realize how lucky we are to be benefitting from this type of overall market performance.
I certainly don’t take it for granted that my performance has benefitted from strong overall market performance.
I’ve continued adjusting the portfolio to reflect what I believe is the best way to invest in the AI Boom while trying to avoid getting caught up in too much hype.
In short, I believe the AI Boom is real (I’ve said that on many occasions) but the struggle is that there are many companies trading at excessive valuations based on hype and extremely high expectations.
There’s a chance those stocks continue just marching higher, but I believe we’re better off owning strong companies with strong balance sheets that won’t have to dilute shareholders and will still benefit from the growth of AI.
I sold ONDS, NOW, P, and RBRK in their entirety, and I rebuilt a full 10% position in Micron (MU) that I had exited before the earnings release.
I know that sounds crazy, but I’ll share the context behind my decision. I’ll also give you my current thinking on two new positions in the portfolo META and CBRS.