Table of Contents
a. Performance vs. the S&P 500
Since Inception:
Year-to-Date:
b. Portfolio Changes
I boosted my already large Meta stake by 9% at prices a few hundred percent above my average cost basis. This is a world-class company enjoying fantastic core engagement and monetization gains. The business is thriving.
While their spending plans are aggressive (which is what some are worried about), that aggression is warranted. META has so many ways to use excess AI compute to profitably help its own business, which greatly diminishes risk of CapEx waste. We see it every quarter. AI is juicing time spent on its apps and is helping ad targeting precision. Every. Quarter. If superintelligence flames out, they can reallocate all of those assets for more family of apps improvement. If this AI boom ends, Meta is still Meta and the biggest effect will be an explosion in near-term free cash flow.
If the AI boom doesn't end, it's leading in next-gen wearables and has an elite team of researchers to build great models and apps. This name gives me exposure to the exciting parts of AI and also gives me significant downside protection for whenever the cycle sours.
In terms of the GPU depreciation schedule debate, I covered that in detail in Discord (late afternoon on November 10th in the questions channel). Meta is in relatively better shape there than any of the major players in various parts of the AI opportunity. At 20x forward EPS, I am ready to buy this dip. For much more detailed commentary on recent performance:
ONON earnings review is coming in the next few hours.
c. Holdings
