IND - Moon Capital Management Q2 2024 Letter
2024-07-16 08:55:00 ET
Summary
- The dominant investment theme of this year has clearly been Artificial Intelligence.
- Our stock portfolio increased approximately 13% in the first half of 2024.
- While the S&P 500 P/E ratio of 24 may offer little appeal to a value investor, excluding AI-related companies brings the index down to a multiple of 17.5 times earnings – still not inexpensive.
- As seductive as it might be to rush into the “newest hot thing,” investing based solely on hot trends is often unwise.
Dear clients and fellow shareholders:
Our original intent was to avoid any reference to politics in this quarter's letter and wait until our October missive to make fun of the two candidates - that is, assuming we would have some clarity on whether either nominee might be confined to a prison cell or nursing home. But the dominant investment theme of this year has clearly been Artificial Intelligence, which is only fitting, given we see so little of the natural variety exhibited in this year's election process. Wall Street apparently prefers the artificial kind, evident in the S&P 500's ( SP500, SPX ) 14.5% increase in the first half of 2024, driven by a staggering 157% surge in the shares of chip maker Nvidia ( NVDA ) - now a $3 trillion market cap company that might consider investing in an additional vowel for its corporate moniker....
Moon Capital Management Q2 2024 Letter