Sectors: Technology
ALU has rallied over +32% year-to-date, with much of the gain enjoyed after the company’s strong result in August. The company delivered an encouraging investor day in November when they were optimistic about their ability to penetrate the Enterprise PCB software market, which is on track to double in size to $1.6bn by 2030.
MM has made no secret that we are looking to reduce our tech exposure in the coming weeks/months; looking at XRO, we should have done it earlier! At this stage, XRO is our preferred funding vehicle for a defensive skew, although if Altium (ALU) breaks towards new highs of ~$50, it will enter the frame.
We are currently sitting on a ~16% profit in ReadyTech (RDY), the provider of people management software, but its shares have waned following the spike post their FY23 results.
We have held AAPL in the International Equities Portfolio since its inception in June of 2019, a US$1 trillion company at the time. This week, the position hit a 300% return in ~4.5 years. We did trim the holding in June of this year, bringing it back to a 5% weighting at $US183.74. However, this was around prudent portfolio management rather than a negative view of the company. Overnight, Apple closed just ~5% below its all-time high of $US198.23, pretty phenomenal when we think about what has transpired since mid-2019.
The Chinese market has been falling since early 2021, with the main indices down over 40% during this timeframe, while during the same period, the NASDAQ has advanced ~30% – a performance differential to put a fund manager out of business! This is one area where we are sitting in the contrarian corner, which is potentially a very bullish read-through for the ASX Resources Sector:
Long time supporter. Love you insights and picks. Can u tell me what etf has Temu as a holding or the best way to invest in this company from Australia?
First of all congratulations on an excellent product. You certainly keep us on the narrow path to wealth creation.
Can I ask your thoughts on IPG please.
IPG has just made a significent purchase which should be a major asset going forward.
Thank you
Terry
Las Vegas-based cross-platform games and entertainment company LNW replaced United Malt Group (UMG) in the ASX200 on the 13th of October, just a few weeks ago; it’s an $11.8bn business that services customers worldwide while the stock also trades in the US under ticker code (LNW US)
The rise of AI is obviously getting a lot of airtime, and rightly so, this is one of the ‘Megatrends’ that will remain in the spotlight for many years to come, however, for now, it’s the large, well-known beneficiaries of this theme that are attracting the most attention. The companies that run the cloud, Amazon, Google, Microsoft & Oracle, and the providers of processing power such as Nvidia (NVDA US), but there are many other companies in the space that MM should stay firmly across, Snowflake being one of those we already hold in the International Equities Portfolio, and while the position is up ~20%, it has underperformed.
