Merryn Talks Money DeepSeek's Disruption and What It Means for Your Investments
25 snips
Jan 28, 2025 Stephen Yiu, the lead manager of the Blue Whale Growth Fund, shares his insights on the recent Big Tech selloff and the evolving perspectives on AI investments. He explains why he trimmed stakes in US tech firms, citing concerns over AI costs. The conversation dives into the rise of DeepSeek, a Chinese AI company poised to challenge American tech, and highlights new investment opportunities in sectors like sports gambling. Yiu also reflects on how political shifts influence market strategies while navigating the complexities of AI's transformative effects.
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High-Conviction Investing
- Invest in high-conviction, concentrated portfolios of 25-35 quality stocks.
- Focus on businesses with strong balance sheets, management, and sustainable models.
Picking Winners
- Differentiated performance comes from picking winners within high-quality businesses.
- Identify companies capturing market share, revenue, or profit in evolving environments.
Valuation Matters
- Even high-quality companies have a price limit; valuation matters.
- Consider 3-5 year forecasts, market consensus, and free cash flow yield adjusted for debt.
