Breakfast burritos and boom time stocks

In this episode of Stocks Neat, Portfolio Manager Gareth Brown and I discuss Nvidia’s unprecedented rise, the recent Guzman y Gomez IPO, current investor sentiment and macroeconomic concerns.

We examine the future competitive landscape of the AI chip space and Guzman’s plans for global expansion. Moving onto the whiskey tasting, we then test a Glenturret whiskey from the "supposed" oldest distillery in Scotland.

The episode also features a discussion of geopolitical risks and the implications of government policy. Rather than looking at any policy changes from a market wide perspective, we argue that investors should focus on how that change may affect specific sectors. Listen to the full episode to find out more.

“If you can put aside the fear of missing out, there’s plenty to do in a world where investors are apathetic to 95% of stocks”.

Timestamps

• 0:00 - Intro
• 2:08 - The discussion begins by examining NVIDIA’s remarkable rise to a (brief) stint as the world’s largest company by market capitalisation, the speed at which it achieved this feat, and the valid arguments about whether it’s a bubble and whether the hype is overdone. We then consider the broad market impact of its rise and the trend of a small number of mega-caps delivering the majority of market returns.
• 11:30 - Following this, we discuss the recent Guzman IPO, the animosity around its post-IPO performance and the feasibility of a successful global expansion.
• 15:46 - We then test a Glenturret Triplewood Whiskey from the supposed oldest working distillery in Scotland.
• 18:53 - The discussion then turns to current investor concerns about the macroeconomic backdrop, particularly political risks and how these are often overweighted. We advocate that political concerns and policy shifts should be analysed from a sector or company level (as opposed to a market-wide level) and note the often ‘negative tilt’ of news generally – “If it bleeds, it leads”
• 27:12 - The final leg of the podcast considers the ability of the market to price political uncertainty (such as election outcomes) ahead of time, as well as some of the opportunities available in a market where investors are “apathetic to 95% of stocks”.

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