General News
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Do we have Sandisk in the funds
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Hi- No we do not. The reasons are many
MU is a pure play manufacturer, Sandisk is a joint venture manufacturer (with Kioxia)
MU manufacturers both NAND and DRAM, Sandisk is solely, NAND
MU hold 3X the Nr of current patents
MU is at a scale Sandisk can never match
MU is exposed to markets growing at a faster paceSandisk is a good business, no doubts. I may have mentioned that I did a lot of work on it over 20 years ago when the business was run by Eli Harari and Sanjay Mehrotra (MU
)My philosophy is to pick the best of breed within a sector. EG Nvidia over AMD. And whilst AMD has appreciated more in the past year, you are now sitting with AMD on a multiple almost 4X greater(75!) but strangely with half the margins and half the growth. We will see how that plays out. Imo when people talk of bubbles this company is it.
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Would you agree Adam that there have been massive over reactions to these earnings reports this week ….
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I agree with that statement completely. There have been record earnings all round, there has been staggering guidance showing accelerated growth (ORCL/AMZN/GOOG/MSFT/Samsung/SK/SNDK)-the common denominator being vast capex and even more next year. Same old interpretation.
In short the future prospects are definitely looking much better yet the stocks are now cheaper. This disconnect won't last imo. They never do.
Are we to believe that the heads of the biggest companies are somehow stupid. Their PNLs and backlog tell you otherwise. Someone is stupid in that mix but is aint them
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The Orange One has been given a bloody nose in the midterms; midterms always do that to sitting presidents but this seems a bit more messy than they normally are.
What impact does this have on investments? Any at all? (I notice that things looked a bit rosier yesterday after a bad end to last week, but the IM funds only moved a smidge today. Maybe there is more to come.)
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Hi O,
I wouldn't read too much into the midterms from an investment perspective. Historically, markets have generally performed well in the 12 months following midterm elections, irrespective of which party controls Congress.
A weakened Trump administration could actually be positive for markets, particularly if it reduces the scope for further disruptive policy decisions. Political gridlock is not necessarily a bad thing for investors.
Ultimately, corporate earnings, interest rates and economic growth will determine market direction, not the election results. In particular, the structural growth in AI and associated infrastructure spending is unlikely to be materially affected.
The facts remain that over the last 2 quarters the earnings and guidance of our holdings have hit records whilst prices have moved sideways. Multiples are at historical lows too. It's a disconnect which always corrects.
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Foxconn: AI demand continues to surge — November 2026
Foxconn, one of Nvidia's principal AI server manufacturing partners, has reported exceptional growth and expects AI-related operations to expand further in Q4.- October revenue: $39.7 billion, up 46% year on year, setting an all-time monthly record.
- First 10 months of 2026: Approximately $280 billion in revenue, up 40.4% year on year.
- AI servers: Strong demand for Nvidia systems continues to support manufacturing activity and expansion.
- Q4 outlook: Foxconn expects further growth in AI-related operations, alongside seasonal strength in consumer electronics.
- US expansion: Foxconn is expanding its AI server manufacturing footprint in Houston, Texas.
Further management comments
Foxconn's chairman, Young Liu, also made several notably bullish statements on 30 October:- No AI bubble: Liu explicitly rejected concerns that AI infrastructure investment is a bubble.
- 2027 growth: Foxconn expects another year of double-digit growth.
- AI server shipments: Management expects AI rack shipments to more than double in 2026.
- Longer-term demand: Foxconn previously indicated that AI production capacity demand should remain very strong in 2027.
- OpenAI: A further collaboration is being developed, potentially extending its role in AI infrastructure.
Reuters:
Foxconn is reporting record revenue, forecasting continued AI growth into 2027 and expanding production capacity. For Micron, the read-through is strongly positive for memory volumes, although Foxconn has not explicitly forecast DRAM shortages or higher memory prices.
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Good periods and not so good periods-what is important is there has been no structural destruction in the fundamentals of these holdings(Technology).
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That graph looks good - I don't know what the units are but it's up from 400,000 in Jan to 950,000 now (so more than doubled in less than a year.) Can't complain about that. However I looked up the numbers for my portfolio just now and it's not pretty .... I guess it's a matter of riding the lows and looking ahead to the future highs, with confidence they will arrive. It's perhaps ironic that Fundsmith (boo! hiss!) hit an ATH yesterday.
Thanks for keeping us updated Adam.
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Ouch ….
Just had a look ….numbers not pretty ..but there was a time when I was very happy with its current value…you’ve spoilt us Adam.. -
