By
Borsgade
In this letter to shareholders, the team at Polen Capital shares their thoughts on AI. Despite all the hype, the Polen team has a constructive long-term outlook on AI’s transformative potential but advocates a patient, globally diversified, and active investment approach focused on quality companies, while being mindful of uncertainty and volatility along the way. The firm sees compelling AI opportunities emerging in industries and geographies beyond the current market leaders.
Here are the key points from the letter:
In addition, Polen has also recently published their investor presentation with their outlook for H2 2024 – see the video here.
We think the next leg of AI opportunities will broaden and include innovative companies beyond the tech sector. We also see opportunities outside the U.S.—particularly in Europe and Asia—where valuations appear more attractive.
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The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
In this video, NYU Professor Aswath Damodaran shares his thoughts on how AI may cause disruption on a personal level. The media argue that AI is coming for our jobs, and for Aswath, that threat became real when he learned of a bot in his name that had read and listened to everything that he had ever written or said.
In his latest paper titled ‘The Less-Efficient Market Hypothesis’ AQR’s Cliff Asness explains why he believes markets have become less efficient over the past 30+ years due to technology, gamified trading, and social media.
This inefficiency raises the stakes for rational active investing, with bigger and longer-lasting market swings. Investors should embrace this opportunity but remain cautious of strategies that might not perform well long-term.
In his recent memo, Howard Marks explores the concept of “Mr. Market,” a metaphor introduced by Benjamin Graham to describe the stock market’s erratic behavior. Marks discusses the market’s tendency to miscalculate asset values due to emotional swings between optimism and pessimism.
In their recent commentary, Bill Nygren and his colleagues at Harris Associates discuss how to avoid value traps. In their perspective, value traps occur when a stock appears undervalued but fails to grow its per-share value at an acceptable rate.
