We continue to believe that the stock market offers materially better value than bonds, in general today. And this belief is based on detailed, ‘first-principles’ analysis. Though many stocks are overvalued today, some are still materially undervalued.
Three examples of stocks in the reopening, defensive and mega tech narratives highlight a market that would baffle a rational Martian.
Of the private market giants, our preferred option is Blackstone, the world’s number one player with $US731 billion of assets under management (AUM) across all asset classes. The company has grown its AUM by 16% per annum for the last decade. It has created a ‘flywheel’ where its success allows it to attract the best talent and best deals, that lead to further success.
It is uncertain what the US competitive landscape will look like after years of newly regulated states and competitive customer acquisition still to come, but if Flutter can replicate Sportsbet’s success with FanDuel, it will help to unlock the huge valuation upside that makes Flutter such a compelling investment today.
Many investors are now asking: is China too risky for foreign investors? We feel the answer lies in not avoiding China. But to invest in China properly. Read Montaka’s 5 steps to profiting in China.
Humans are linear by nature and our ability to grasp exponential change is extremely poor, this creates a blind-spot when it comes to assessing the potential of technology. While the cloud opportunity is already thought of in the trillions of dollars, it may actually become three to six times this size over the coming decade.
During periods of uncertainty, investors often default to first-order thinking and overweight what’s next. In these environments, attractive opportunities can be found by remaining focused on what a business is worth.
As we take the temperature of the major bilateral relationships with China, we assess that the probability of more intense disagreements and confrontations with the world’s second-largest power is only increasing.
The expansion of Adobe’s Creative Cloud has been a key driver of Adobe’s 10x increase in market cap over the last 10 years. And we believe the long-term opportunity for Unity in real-time 3D/AR/VR will be even more significant.
As we process the information being reported by companies in their first quarter earnings announcements, one theme that pops up across the board is that of inflation. Read on to know our analysis.
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