MyNest US Fund May 25

Dear Investors,

Generative AI is increasingly giving knowledge workers the leverage to be more and more productive. As we embrace the use of ChatGPT, Gemini, Grok etc we are now getting information on not just what we need but also on a secondary level which is the follow up.

It is obvious that people are going to increasingly change the way they search for information and at the center of search is the company call Google.

Alphabet, the parent company, demonstrated during Google I/O that it is fully aware of what is to come and how AI will transform the way people search, including how future advertisement revenue will be generated.

How much is Google Worth Without its Search Monopoly

Google, as a player in this AI evolution, will participate in this complete reset of the search market. Instead of being the monopoly in the search market, the reset will downgrade it to a mere participant.

How well or how profitable Google will be in this new era remains to be seen. What is undeniably true is that the pie for search will be increased exponentially.

Other Components of Google

Besides search, Google is now deriving half of their revenue through other means. YouTube, Google Cloud, Android, Deepmind, Waymo and other businesses are seeing healthy growth.

When all of Google non search components are put together, one can conclude that it is now trading at an inexpensive valuation. As such, I have made Google one of the cornerstones of this portfolio.

MyNest US Fund Portfolio Compositions

The portfolio sees a new addition of Novo Nordisk. While my circle of competence is rather narrow for the healthcare sector, I believe the company has a significant moat with its weight loss drug.

MyNest US Fund Performance

Our benchmark, the S&P 500, rebounded strongly during the month of May, driven by the Magnificent 7. Our portfolio struggles to keep pace with the gains, but nevertheless still leads by roughly 4%. I expect volatility to continue throughout the year, which will offer great opportunities to add.

Segment Chart

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MyNest US Fund cash level continues to grow as family investors continue to show strong support for MyNest US Fund. I expect the Fund to take another round of funding in Jun to take cash to around the 20% mark. Any deployment of this newly injected cash, however, will depend on the availability of opportunities.