Mehmet Yurtseven @HalalDividend: "Dear Copiers and Followers, I hope..."

United Kingdom

Dear Copiers and Followers, I hope you had a relaxing summer and are energized to get back to work. I’d like to update you on the portfolio and share a few macro views. So far, I’ve mostly let the portfolio ride the market. We’re up a bit more than 3%, which I’m happy with, and we’re sitting at all-time highs—just like the broader markets. A few compliance notes: $GPC (Genuine Parts Co) and $LOW (Lowe's Companies Inc) are, as usual, hovering near the boundary, while BDX has slipped much further. I’ve closed $BDX. I also trimmed PEP earlier than planned to free up cash for a new position. That new position is in $SAP (SAP SE ADR). $SAP is one of the largest business software companies globally. Their recent pullback looked like a good entry point. Cloud revenue is growing strongly—up about 24% year over year in Q2, with their ERP suite growing nearly 30%. Predictable revenue now makes up ~86% of their total. SAP is embedding its AI assistant “Joule” into many workflows, so I see them as well positioned to capture long-term benefits from the AI shift. I opened the position in ADR to avoid CFD issues. $SHW (Sherwin-Williams Co) temporarily suspended 401k matching contribution for employees. It scared me a bit, but apparently this is a usual step for them. According Seeking Alpha, CEO said "the decision was a result of high mortgage rates weakening housing demand and inflation reducing DIY demand. Tariff policies also dented industrial demand and raised costs for the company." I will check the earnings call for more details, which should be in a month. The Fed cut rates last week, as expected. I anticipate another 25-basis-point cut at the next meeting. The bond market hasn’t been thrilled, but equities are addicted to easy money—and they got what they wanted. Ray Dalio must be fuming (and probably with good reason). Expect more volatility. Machine learning isn’t new—the difference today is scale. With the resources to train on vast datasets, only the mega caps can afford to push the frontier, which is why they’re leading this rally. Smaller players may join later, but for now, the cash-rich giants are in control. Oracle’s latest earnings highlight that cannibalism is already underway—cloud and AI services are growing rapidly while traditional software revenues are stagnating or shrinking. The growth comes at the expense of others That shift is natural in tech. What comes next, eventually, is the risk of commoditization: as more companies scale similar services, margins tighten and products start looking interchangeable. We’re not there yet, but it’s a dynamic worth watching. Happy Investing, Mehmet

Not investment advice. The author may have financial interests in the mentioned instruments.