MyNest US Fund Feb 25

Tariff was the key word of the month.  Despite the use of the word in every financial media and conversations, the details and any impact tariff may create is still up in the air.  

Uber and Grab

Earnings within the portfolio companies went without much surprise.  I have added to the position in Uber and initiated a small position in Grab.  The thesis is simple. These ride-sharing companies will become like utilities. It means they have become an essential part of the global transportation system.  

With them operating at scale, their incremental cost will decline as revenue scales up. Suggesting a high possibility of margin expansion.  How autonomous vehicles will impact ride sharing is still a question mark, but I am cautiously optimistic that platform companies like Uber and Grab will be part of the game as they will have the user numbers to deploy such vehicles at scale. 

Berkshire and Markel

Both Berkshire and Markel saw meaningful rerating as their insurance business gained profitability margins.  Technology stocks like Alphabet and Paypal come under pressure due to the sharp run-up in the past years. 

MyNest US Fund Portfolio Compositions

The very small position in Palantir was sold during the month as its price ran way ahead of its fundamental. At one point, it was trading at nearly 100 times prices to sales, which is incredible given that even at zero operating cost, it will take the company 100 years to earn back its valuation.

Compare this to Amazon or Tesla whose valuation seems the loftiest at times, P/S ratio never exceeded 30 times.

MyNest US Fund Performance

Overall, MyNest US Fund is up 3.5% YTD versus the S&P 500 1.2%. Much of this outperformance is due to the drag the Magnificient 7 has on the S&P 500. While the MyNest US Fund is only into the 2nd month of the year. Things are already looking relatively positive with the fund not as heavily positioned into technology stocks.

Segment Graph

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