We attended Snowflake’s Data Cloud World Tour where we met Frank Slootman (CEO), Benoit Dageville (co-founder), employees, clients, and developers. Benoit is a passionate innovator that makes many French computer scientists proud and Frank represents the ‘Dutch’ no-nonsense execution.

The physical moats of businesses like Coca-Cola and Union Pacific are clear. Even if a new competitor would have USD 100 billion, it would probably fail to replace their network.

We see the moats of various European family businesses that already for decades have been making specialized machines for manufacturing that require niche technical knowledge. These machines and robots enable others to produce the highest quality products at the lowest cost.

It is also relatively straightforward where to find the competitive edge of businesses that combine cutting-edge hardware with software, e.g., ASML, Apple, AWS (Amazon), Tesla, Azure (Microsoft), and Nvidia. The moat is not just around the technical knowledge of combining hardware and software but also comes from managing the complex network of specialized suppliers.

It becomes more challenging to get conviction on what the lasting moat is for the consumer-facing pure software businesses (B2C). For example, Spotify. How durable is engagement and how well can it be monetized?

Even more abstract is how to define a moat in the intangible (pure software) business-to-business (B2B) software world. We clearly see clear moats around both Visa and Mastercard as the network is dominant and hard to replicate. How about Snowflake? Does it have a moat?

An important aspect of a moat in enterprise software is to be found around sticky client relationships that exist because switching costs for the client to move to another platform are high and because the product delivers a good value proposition where the price is a fraction of the perceived value that the client derives from using it. Pricing power is a derivative of this. Microsoft Office and Revit (Autodesk) are good examples. If the platform is able to get scale, distribution advantages, and pricing power, then it can be possible to get confidence around the moat and the durability of growth. In contrast to the Coca-Cola Company, where repricing is a daily topic, this period is the first time most tech businesses are experiencing an inflationary environment in the United States and Europe. We need to see more evidence of pricing power as well as intelligent capital allocation.

The word ‘cloud’ does not reflect the reality of building and managing large modern data centers. Hardware needs to be built and the racks, power supply, and air conditioning, can break and needs to be fixed. The cost of a new single-story AWS hyperscale data center of about 20,000 sqm is north of USD 1 billion. The entry barriers here have become significant also because more efficient computing power is coming from ever more powerful custom-designed chips.

Moving workloads to the cloud is just the beginning. The real productivity gains come when people start to leverage data to optimize decision-making and create new things. Besides Amazon, Microsoft, and Google, two relevant platforms have emerged that enable better data management: Snowflake and Databricks. Both teams come from different backgrounds, have strong fundamentals, and have different approaches to building modern data architecture. We own shares in both businesses and are following their chess game closely.

In contrast to AWS and Azure, Snowflake does not build its own compute infrastructure and instead runs ‘on top of’ the main public clouds. About 80% of Snowflake’s workloads run on AWS and 18% on Azure; Snowflake is both a large client as well as a competitor for the two dominant cloud players.

Then where is Snowflake’s moat? At what point will AWS be able to offer a superior value proposition because it owns the compute infrastructure? Is Snowflake basically the client acquisition tool for AWS until it decides that it likes to eat Snowflake’s lunch? Would it ever make sense for Snowflake to build its own infrastructure or is a focus on the core capabilities a superior strategy? How significant are switching costs for Snowflake clients that have most data in its data cloud and collaborate using the data-sharing marketplace? How successful can Databricks or Google be in positioning itself in a way that may compete with Snowflake’s cloud-neutral position that reduces data silos across clouds?

Enterprise relationships gradually shift over time. In the 1990s IBM and Oracle dominated the space. The way Microsoft became a B2B leader is one of the greatest turnaround stories in history. In contrast, Google has great technology but lacks the same relationships which makes it more difficult to scale its cloud services. How many pricing incentives does Google have to offer to convince businesses to pick its technology versus that of Snowflake? We never underestimate Google; it is competitive and a leader in machine learning.

Snowflake is adding value to the hyperscalers. This is best reflected in the partnership that both AWS and Azure have with Snowflake. The following recent remarks by Michael Scarpelli, CFO of Snowflake, illustrate this point well:

‘What I would say is AWS of the three clouds is probably the friendliest to Snowflake. And I think last year, we co-sold about $1.2 billion with them. Microsoft is next, and GCP is the one we have a relationship that’s not very strong. And GCP is the most expensive cloud for us to run and their pricing is not very good. AWS gives us great pricing. We’re in the midst of renegotiating a contract with AWS, and I know Microsoft will follow. It was funny, everyone was concerned last quarter about how can you guys be growing when Microsoft was seeing weakness, and that’s why I pointed out that 80% of our business is in AWS. It was funny that this got the Microsoft execs to actually call us to tighten their relationship with us.’

It is remarkable how good Snowflake seems to be at onboarding the world’s largest enterprises. Clients mention the ease of use and cloud-neutral architecture. This growing relevance in being an important part of the modern data stack is one part of the moat we recognize at Snowflake. The data cloud includes a data-sharing marketplace that creates a network effect because once a client is sharing data switching costs become high.

Snowflake is one of the faster scalers we know. Once clients are onboarded, they tend to consolidate on Snowflake which is visible in the high net and gross retention rates. Capital One massively ramped up its spending on Snowflake from USD 1 million a few years ago heading toward USD 70 million. This exponential growth is possible because Snowflake has a consumption pricing model where clients pay for compute power consumed. This model can be more scalable than a SaaS model where clients pay for the right to use the software which is ultimately capped. As a result, the path of Snowflake may look more like that of AWS which is now at a USD 82 billion revenue runway.

Most businesses will not be able and should not build their own physical infrastructure but leverage the cloud infrastructure instead. From an investing perspective, the splintering of the layers but standardization around the pillars is interesting. What company is a pillar and is allowing access to partners to leverage the platform? Does this result in stickier client relationships? Snowflake has already become an ecosystem of partners.

Thinking about moats is interesting and never easy. For example, Amazon Prime has opened its logistics network to outside merchants. How does this impact the moat of Shopify which so far is a pure software business?

We are seeing many businesses arising on top of open-source platforms. For instance, Elastic on Elasticsearch, Databricks on Apache Spark, and Confluent on Kafka. These businesses must make sure their value proposition is good enough to attract organizations to pay for a hosted product rather than pay dedicated FTE that manage the software internally. How sticky are the client relationships once they started paying?

Over the past few weeks, we have seen enormous (USD 100m+) ‘seed’ funding rounds in the field of generative AI. For example, Stability AI and Jasper AI. These teams develop use cases on top of mostly open-source machine learning models. We will see where the lasting moats will come from for these businesses and therefore where the value will accrue.

What seems clear is that these breakthroughs in AI unlock creativity at the tail end of creators and all interactions with these models increase demand for computing power and therefore demand for AWS, Azure, GCP, as well as for Nvidia’s GPUs. Every person and machine is now feeding data into the data clouds. The prompt for Stability AI’s DreamStudio to generate the image based on the text ‘the quest for the moat of Snowflake, by Casper David Friedrich, matte painting’ is just adding incremental demand for compute.

What is not reflected in today’s prices? In the case of Snowflake, we think the valuation today implies that management will hit the target revenue guidance of USD 10 billion in fiscal 2029. Even management seems to think that this is a low hurdle and if this is achieved earlier with a 25% free cash flow margin then the stock is likely to double in the next 3-4 years. Is that good enough versus owning the hyperscalers that have become attractive based on net earnings? Over the past decade, the public has permanently underestimated the addressable market for the leading cloud businesses and as a result, Amazon and Microsoft have been undervalued most of the time. Cloud is one of the biggest and fastest growing industries and it is likely that platforms that are relevant in this ecosystem can achieve significant scale as long as the moat is growing daily.

This week we saw a slowdown in growth at AWS and Azure; in the third quarter of 2022, AWS grew 28% YoY at a USD 82 billion revenue runway, and Azure grew 42% YoY at a USD 50 billion runway. There will be more focus on cost efficiency both at the hyperscalers and at their clients. However, this does not impair the long-term earnings power and moat of the leading cloud businesses. It is possible that there will be more focus on deepening valuable partnerships that are bringing business to the infrastructure clouds.

We have experienced a historic drawdown, especially in tech-driven businesses. This is painful and interesting as well because what are the businesses today that are comparable to what Amazon and Salesforce were in 2008? In other words, what business gives us a high conviction of durable growth and would be able to increase the market value at least tenfold over the next ten years?

Our focus remains on leading tech-driven businesses. What really matters to us is to be right about the quality of these businesses. If we are correct about the fundamentals, then share prices will take care of themselves over time.

We are experiencing the biggest sell-off in (growth) stocks since the credit crisis in 2008/09 and the Dotcom crash in 2000/01. More than 45% of the Nasdaq’s stocks are down more than 50%. Shopify, one of our larger positions, is down 67% in 2022. Spotify is down 55% and even Alphabet and Amazon, powerhouses with enormous earnings power, are down 19% and 27% respectively.

Meanwhile, the portfolio companies have reported solid 2022 Q1 earnings updates, especially given the challenging period, and the outlook remains good. We largely own the same businesses as in December 2021. We sell businesses when there are red flags that would indicate a material negative impact on long-term earnings power. So far, we have not seen such evidence related to our businesses.

We understand that people are confused by various tectonic shifts; rising inflation and interest rates, labor shortages partly driven by the emerging creator economy, geopolitical tensions, cyber threats, Apple’s IDFA changes, the transition from the pandemic to an era in which digitalization is still accelerating, the enormous impact of AI on society, changing business architectures driven by migration of workloads to the public cloud, supply chain challenges, and so forth.

Many of the world’s current problems are our businesses’ opportunities. For Cloudflare, Snowflake, and Crowdstrike, to protect data and enable efficient information intelligence for governments and enterprises. For Shopify and Spotify to enable entrepreneurs and creators to monetize their brands, to be discovered, and all that for lower costs.

We do not know when and where prices will rebound. Such major market drawdowns can easily last 12-18 months from the start (November 2021). Until that moment, valuations are not just declining because prices come down yet also because the businesses are growing.

In hindsight, it would have been great to sell all stocks in October and come back these weeks. However, dancing in and out of core investments is likely to be an inferior strategy going forward and not a game we will ever play. When dealing with scalable internet-enabled businesses, the biggest challenge going forward will be to be comfortable owning thriving companies at full valuation and through multiple swings in the price of the stock.

These mark-to-market losses are painful. The risk of a permanent loss of capital is largely determined by the investor’s horizon, and we have always made it clear that our horizon is at least 3-5 years ahead. This sell-off also provides a rare opportunity for those with the right mindset and horizon.

Finally, let me end by sharing this essay by Kevin Scott, CTO of Microsoft, about the progress in AI and the definition of ‘work’. Generative models such as Dall-E2 (a new AI system that can create realistic images and art from a description in natural language) and PaLM (Pathways Language Model) are becoming powerful and will have an impact on society. It is relevant because some of our businesses are leveraging these innovations to build better products.

Hold on.

Georg

 

We bought shares in Epic Games, a leading interactive entertainment company, operator of Fortnite, and provider of the Unreal Engine, which powers the world’s leading games as well as industrial simulations.

We think that Epic has a gigantic opportunity to thrive in the future internet. There, we are unlikely to conduct affairs while staring at a 5.7 x 2.8-inch two-dimensional box. Our experience of the network will be largely immersive, and our physical self will be better represented in a virtual space. This is a natural continuous development from text to image, to video and augmented reality. And from mainframes, to PC, to mobile, to virtual reality.

History shows that the dominant operating systems of the old medium seldom rule the new. The leading operating systems of autonomous cars as well as the metaverse are likely to be new businesses. As a gaming company, Epic has a fine position to expand; what else can you do in a game? One can walk out of a virtual soccer stadium and start to develop a 3D representation of a social space where the activities we can engage in are continuously expanding and include education, exploration, and enterprise. For instance, in August, Ariana Grande’s concert in Fortnite was attended by millions of people.

We believe that today’s ad-laden walled gardens will be mostly replaced by free spaces in which people interact in a more open and playful way. Today, millions of creators are building products and businesses in those virtual worlds. Those virtual and physical interoperating economies can be called the metaverse.

Our investments in Roblox and Epic Games, amongst others, give us a share of the wealth that is going to be created here. This article in the Washington Post gives some insight into Epic’s vision.

Yesterday, Facebook’s platforms disappeared from the Internet. We are co-owners of Cloudflare and its team wrote an interesting blog about what happened.

These days, we are closing another pre-IPO investment in a great data & AI business.

It is impressive how fast Shopify is growing its relevance and moat. The decoupling of jobs from location and democratization of participation in the internet-enabled economy is changing lives and business architectures. The modern enterprise is a core with a big partner network of applications around it. Today, any person can lever this network to run a commerce strategy. In his excellent message to Shopify employees, Tobi Lütke, wrote that Shopify is not a family but a team of which the members must perform and will be judged on performance. Now this team can hire any skilled person with internet access regardless of location.

In the payments business (Merchant Solutions) Shopify takes a margin on Gross Merchandise Value (GMV) transacted via the platform. As GMV is growing faster than Subscription Solutions (pricing plans for merchants to access the commerce tools), merchant tools are increasingly becoming a way to grow GMV and therefore the payments business.

On June 15, Shopify announced the strategic move to open up Shop Pay, the excellent checkout system, to all retailers selling through Google and Facebook. As a result, stores that exclusively exist on Instagram (not Shopify) can use Shop Pay for payment processing. The reason for Google and Facebook to agree to this integration is that it drives better conversion of their stores (Shopify claims that checkout on Shop Pay is 70% faster than a typical checkout resulting in 1.72x higher conversion rate) and therefore it enhances Google’s and Facebook’s core business which is advertising.

Shopify is enabling Google and Facebook to better compete with Amazon. The multi-channel future of commerce is now going to make Shopify’s merchant tools even more important; Shopify president Harley Finkelstein said: “You now need to reconcile inventory across eight or nine channels. You now have to handle shipping and fulfillment across eight or nine channels. And so as the complexity increases, the value of using Shopify as the central retail operating system also increases.”

About 10% of all e-commerce in the U.S. is going through Shopify (versus 39% through Amazon). On June 29, Shopify announced that they are removing all revenue share on developer’s (together earning USD 233 million in 2020) first annual USD 1 million as well as cutting the commission rates from 20% to 15%, which is about half of what other app stores charge. It has become a no-brainer for software developers to create products for the Shopify App Store. This will further grow the quality of the ecosystem.

The metaverse is an idea that describes the shared 3D spaces in a virtual universe. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse.

Roblox was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash. Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to meet to play, learn, and build friendships.

Whether a person likes to go scuba diving, adopt a pet, become a superhero, or explore ancient Rome, one can explore it on Roblox. Here, about 8 million active creators are developing over 20 million experiences where more than 37 million young people come each day for an average of two hours per day. Roblox has become a virtual economy that people can access anywhere on almost any device.

Robux, the digital currency, can be used to purchase items such as pets and cars. Earned Robux can be reinvested in the virtual worlds or can be exchanged for fiat currency. In 2020, over 1.2 million creators earned Robux and more than the equivalent of UD 320 million.

Roblox is at the intersection of gaming, communicating with friends, entertainment, and commerce. The firm is offering the tools to create; Roblox Studio is the platform where developers build, publish, and operate 3D experiences.

Recently, Roblox has become a publicly-traded company. Among the questions we are thinking about are; whether international expansion can attract hundreds of millions of users; how the age range can be expanded; how the growth of use cases such as experiencing concerts together, experiencing physics, collaborating, and monetizing the virtual economy will affect the value of the network.

The growth in daily users, hours engaged, bookings, and achieving more operating leverage, hint at a long runway of healthy profitable growth ahead. The long-awaited tipping point in the adoption of VR devices seems to be getting closer as well and might provide a further boost to engagement. All in all, Roblox is a business that we will be following closely.

Two thousand and twenty was the year in which the promise of artificial intelligence became more tangible. We are probably entering the phase in which the early majority is starting to adopt machine learning infrastructure. Breakthroughs such as GPT-3 (an autoregressive language model that uses deep learning to produce human-like text) and AlphaFold 2 (code that predicts the 3D structure of a protein based on its genetic sequence) are hints of what lays ahead the coming decades.

Tim Davidson, founder and CEO of Aiconic and one of our advisors in the field of artificial intelligence, concluded his year-end note by saying “In the unique world of machine learning, it was a year of meaningful breakthroughs. While uncertainty looms over 2021, we see enough evidence to support a bullish view on everything that is cloud + machine learning (ML). The expanding ML-as-a-Service industry and ever declining costs of research are likely to empower a new generation of ML products and companies. Lower failure costs combined with increased competition will accelerate the startup iteration cycle, providing investors with faster outcomes. Finally, corporations and governments will drastically increase their venture investment targets in an attempt to stay relevant in a rapidly digitalizing and automating economic environment.”

We are excited about emerging machine learning infrastructure companies that are able to deliver the end solutions that the market is now ready for to start implementing.

Over the past two weeks, most of our businesses presented their 2020 Q3 results. The numbers show the tectonic shift of wealth within society.

Just five years ago, a trillion dollar market valuation still sounded unimaginably big. Few people would have thought that the trillion dollar+ businesses would continue to grow at such a stunning rate.

Satya Nadella, CEO of Microsoft, said in the presentation of the third quarter earnings: “The next decade of economic performance for every business will be defined by the speed of their digital transformation. Tech spend is 5% of GDP. We think it will double in the next 10 years and if anything, this pandemic has perhaps accelerated that doubling. In that context, the large most secular need is the need for distributed cloud infrastructure. It’s both needed for modernizing existing applications you have, and that’s, by the way, 20% penetrated so there’s another 80% that needs to move.”

Enterprises are moving workloads to the cloud at an accelerated pace. It enables cost efficiencies and enhances security. The whole non-Chinese world is basically moving to three cloud infrastructure platforms. Amazon Web Services is growing 29% and is now at a USD 46 billion annual revenue run rate. Amazon’s cloud business alone is worth more than USD 600 billion. Microsoft’s cloud division hit a USD 25 billion revenue run rate and is growing at 47%. Google’s cloud is around USD 14 billion and is growing at 45%. Google’s cloud growth even accelerated as growth in 2020 Q2 was 43%.

These powerful cloud operations are one reason why the valuations of these three holding companies remain fairly attractive.

 

 

The digital revolution perhaps marks the greatest disruptive transformation in the history of mankind so far. The evolution of human intelligence spans about 7 million years, roughly from the separation from the genus Pan. The emergence of almost limitless artificial intelligence is now starting to have a significant impact on society. The unfolding of machine learning is proceeding at a revolutionary speed. It is likely to cause more change to the way we live over the next few decades than it did over the past few centuries.

A good way to get an understanding of what is happing is by studying today’s relevant businesses. During these summer days, I’m spending most of the day reading company reports and listening to the Q2 earnings conference calls. These insightful discussions are open to anyone on the Investor Relations websites of every public company. The staggering growth of some firms is showing the shift of behavior; for example, Shopify reported revenue growth of 97% in the second quarter and Amazon’s revenues increased by 40%. The fact that Amazon, with a market value of USD 1.5 trillion, can grow at such a speed is unprecedented.

We are experiencing the Cambrian explosion of cloud-based technologies. Of software connecting to software and of unsupervised learning at a pace so fast that those looking in the rearview mirror are at risk of being replaced by machines.

The role of software is increasing at an accelerated pace. Satya Nadella, CEO of Microsoft, said last week that “the last five months have made it clear that tech intensity is the key to business resilience. Organizations that build their own digital capability will recover faster and emerge from this crisis stronger.”

One positive effect of running a distributed business is that the global pool of talent can be accessed irrespective of where a person happens to live. The decentralized way in which many people are able to work is increasing the measurability of every person’s added value and decreasing the benefits of, for example, having a charismatic character. Today, business leaders know better than ever who is relevant and who is replaceable.

Once, the leaders of companies were mainly the well-adjusted social people, those with the personality to move up the corporate ladder. This social setting is getting upgraded now as the autodidact hackers who create art by writing code release their creations into society. Their influence is derived from the beauty of the virtual worlds they are building; masterpieces that eat the role of physical assets as well as that of humans.

While this technological revolution is chaotic and disruptive like any transformation, there will also be many positive effects on the quality of our lives. For instance, we own shares in Livongo, a firm that leverages data to empower people with chronic conditions such as diabetes to live healthier lives.

Today’s younger companies are growing faster and reaching scale at record speeds. Most of these companies are cloud-native and using machine learning to get insights from data. Eugene Wei, a former product developer at Amazon, Hulu, and Oculus VR, wrote this week:

“TikTok didn’t just break out in America. It became unbelievably popular in India and in the Middle East, more countries whose cultures and language were foreign to the Chinese Bytedance product teams. Imagine an algorithm so clever it enables its builders to treat another market and culture as a complete black box. What do people in that country like? No, even better, what does each individual person in each of those foreign countries like? You don’t have to figure it out. The algorithm will handle that. The algorithm knows.”

The current discussion about TikTok shows that technological supremacy has become a geopolitical matter. Machine learning, computing power, cybersecurity, and space dominance, amongst others, have become essential themes of national defense. The arms race in these fields will remain an important topic for the rest of our lives.

In 2030, when looking back at 2020, we will be amazed that some of the most valuable businesses were still smaller private ventures today. While I think that the businesses in which we own shares will thrive, sentiment in markets and stock prices will forever fluctuate wildly. Market participants who are selling shares of great businesses based on someone’s opinion that valuations are rich are likely suffering from a failure of imagination where certain businesses, as well as our species, are headed.

I am writing this update in the garden of a medieval building and from underneath an old oak tree that has been here before 1788, the year of birth of Bank of New York Mellon, the oldest company on this year’s Fortune 500. It helps me to get perspective as businesses continue to come and go. The free market is always destroying the old economic structure and creating a new one and I feel we have to be on the ball closer than ever before. Therefore, Jeff Bezos continues to remind his team that today is Day One and to keep acting like a startup.

Now it’s time for me to listen to the next company’s earnings report. All I need to do is to open my Spotify app. This is the most interesting time of my investing life so far.

The massive global scramble to digitalize both private and professional matters is creating big winners and losers. Today, we are at a shockingly early point in the digital transformation.

The economy of the internet is still only a single percentage of global GDP. We are gradually heading to a place where the GDP of the internet will provide the majority of economic activity. This big social change is like a huge tailwind driving the most successful businesses in the next decade.

E-commerce penetration in the U.S. grew from 5.6% in 2009 to 16.0% in 2019. Then it grew about 30% in April. There are 5.7 billion adults on the earth of which about 4 billion have a smartphone. The penetration of e-commerce is still low in most countries because people lack good internet and digital tools. If one would like to buy a handmade fabric from a person in Senegal online, then there are quite a few complications with regard to the exchange of goods and money. However, the teams at companies such as Starlink, Stone, Stripe, Shopee, Square, and Shopify, are determined to provide the most efficient platforms that allow and urge everyone to participate.

As digital commerce is growing more businesses are building a direct relationship with the consumer. For instance, L’Oréal’s chief digital officer said “We are setting ourselves up for a world where half of the business is e-commerce and 80% of customer interactions will happen online.” L’Oréal quickly shifted its advertising and marketing spending online, which led to an increase from 50% to 70% of its total since the start of the pandemic. As a result, digital advertising on platforms such as Instagram, Amazon, Cardlytics, Spotify, and Roku, is set on a trajectory this year to overtake spending on traditional media.

Changes are clear beyond commerce; the pandemic has caused a massive acceleration of remote education and telehealth which grew from an 11% penetration in 2019 to about 46% currently. The pandemic has increased the need for technology that enables on-demand virtual urgent care, virtual visits, remote personalized monitoring, and collection of data to improve care driven by machine learning.

The investor does not need to have an opinion on the general economy. It does not matter what the general economy or the stock market will do. What matters to the investor is whether one belongs to the group to whom wealth is shifting.

The pandemic is accelerating existing trends to digitalize. We further concentrated on technology businesses that benefit from current developments and that provide winning platforms in e-commerce, cloud computing, gaming & e-sports, digital payments, and machine learning.

On April 27th, Loren Padelford, Chief Technology Officer of Shopify, the e-commerce platform, tweeted ‘this crisis is a time machine that brought 2030 to 2020. It accelerated the digital transformation on many enterprises who weren’t ready. We have helped thousands of large retailers unshackle from legacy systems and start writing their next chapter.’ Over the past month, Shopify experienced strong volumes every day. Heinz and Lindt, amongst others, announced their online stores on Shopify to build direct consumer relationships.

On April 29th, Satya Nadella, CEO of Microsoft, said ‘As COVID-19 impacts every aspect of our work and life, we have seen two years’ worth of digital transformation in two months.’

While there is a large audience for doomsday scenarios about the virus, unemployment, corporate defaults, government debt, money printing, etc., the intelligent strategy is to co-own a focused selection of great companies that will thrive.

The strong businesses seem to emerge stronger from this crisis.