Eduard Torruella @EduRoig: "𝑻𝒐𝒅𝒂𝒚 𝒕𝒉𝒆 𝑼𝑺 𝒎𝒂𝒓𝒌𝒆𝒕 𝒊𝒔..."

Spain

𝑻𝒐𝒅𝒂𝒚 𝒕𝒉𝒆 𝑼𝑺 𝒎𝒂𝒓𝒌𝒆𝒕 𝒊𝒔 𝒄𝒍𝒐𝒔𝒆𝒅 𝒅𝒖𝒆 𝒕𝒐 𝑰𝒏𝒅𝒆𝒑𝒆𝒏𝒅𝒆𝒏𝒄𝒆 𝑫𝒂𝒚. It's been a while since I wrote an update, so here is a quick one: One of the most important moves was reducing $BTC exposure around the 80k area and reallocating part of that capital into software companies and other stocks that, in my view, were trading at much more attractive valuations. $SAP (SAP SE ADR) benefits from the migration of core enterprise systems to the cloud, with cloud revenue growing strongly and current cloud backlog still expanding, while its Business AI tools are embedded directly into customers finance, HR, supply-chain workflows, making the product very sticky and difficult to replace once it becomes part of daily operations. $AMS.MC (Amadeus IT Hold -A-) on the other hand, is a travel technology infrastructure play: it benefits from ongoing digitalization of airlines, hotels, airports and travel distribution. Even if AI agents eventually change the way bookings are made, I don’t think Amadeus is easily replaceable, as it sits deep inside the infrastructure that powers travel transactions and operations. In both cases, I believe the market is repricing these high-quality businesses partly due to AI-related fears. I understand the concern, but I don’t think these platforms are that easy to replace. I will continue to monitor the situation. While I remain constructive on equities overall, I continue to believe that many investors underestimate how concentrated some indexes have become. Everyone talks about the concentration of the S&P 500, but the reality is that some Emerging Markets indexes are even more concentrated. $EWY (iShares MSCI South Korea ETF) For example, Taiwan Semiconductor alone represents roughly 14-15% of the MSCI Emerging Markets Index, while Samsung Electronics and SK Hynix add another 12-13% combined. In other words, more than a quarter of the index is effectively tied to three companies and largely to the same AI and semiconductor theme. This is one of the reasons I continue reducing ETF exposure and increasing allocations to individual companies where I believe valuations are more attractive and expectations are more reasonable. I still see plenty of opportunities in businesses that will benefit from AI adoption, but I am currently more interested in software, proprietary data providers, and select quality companies than in areas where the market is already pricing near-perfect outcomes. That is why I sold $ASML (ASML Holding NV) (After huge returns in 1 year). Regarding crypto, I do not believe we have necessarily seen the end of the Bitcoin bear phase. My plan remains similar to what I did during late 2022: stay patient, wait for better opportunities, and gradually increase exposure when risk/reward becomes more favorable again. I could have sold more $BTC at the top, but I am quite satisfied with the timing of my position reduction above 100k in BTC. That is why the portfolio is still in the green even after my largest position dropped more than 50%. I think most of the drop has already happened, but we will have to be patient for the next leg up. That is not a problem, as I currently see very good opportunities in the equity market, which I didn’t see a few months ago. As always, the objective remains the same: ➡️ Focus on long-term compounding ➡️ Avoid excessive concentration risk and permanent loss of capital ➡️ Stay patient when opportunities are limited ➡️ Be aggressive when valuations become attractive The best opportunities often appear when expectations start falling, and today’s market is pricing high expectations for a few companies and low expectations for another part of the market.

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