|
 |
Another month, another Portfolio Update.
How do our stocks perform? And which companies are the most attractive right now?
Let’s dive in right away.
 |
Crazy Mr. Market
Do you know how Warren Buffett performed just before the burst of the dotcom bubble?
In 1999, Berkshire Hathaway was down 19.9% while the S&P 500 increased by 21%.
This means he lacked the index by 40 (!) %.
 |
People where asking whether Warren Buffett had ‘lost his magic touch’:
 |
Over the next few years Warren Buffett massively outperformed the index:
 |
The lesson in here?
Every active investor will face periods of over- and underperformance.
The honest reality is that quality faces a challenging time right now.
During times like this, you should do two things:
Keep your head cool
Stick to the plan
I think some investors are becoming very paranoid nowadays.
Mr. Market continues to be very fearful of anything he thinks AI might disrupt.
Walmart versus Nvidia
Do you know what’s crazy?
Fear is driving investors into “AI-proof” businesses.
Walmart and Costco now trade at higher P/E multiples than NVIDIA.
Here’s what their Forward PEs look like:
Walmart: 46.1x
Costco: 53.7x
Nvidia: 39.9x