And yet, a curious thing occurred. Despite a balance sheet that hardly appeared distressed, SoFi elected to issue further shares, diluting the holdings of those who had already entrusted their capital to this venture. A peculiar decision, one might think. Like adding another room to a house already comfortably spacious, or acquiring a second umbrella on a clear day. The market, naturally, reacted with a raised eyebrow, a silent question hanging in the air.
The sale, reported in an SEC filing, leaves Tweedy, Browne with 400,924 shares, a reduction from a larger position. The fund’s overall stake in Autoliv has diminished in value by $5.84 million, a figure that reflects both the sale itself and the broader movements within the market. It is a reminder that even a successful investment can yield a diminished return, and that the relentless upward climb of share prices is rarely sustainable.
By investing in these computing companies, you’re acquiring a stake in something that’s demonstrably making money now. (A refreshing change, wouldn’t you agree? So much investment relies on the vague promise of future profitability. It’s like betting on a snail race.) You’re not entirely dependent on the speculative whims of generative AI taking over the world (though, let’s be honest, it’s a distinct possibility). Investors won’t fully grasp the implications of generative AI for years – decades, even – and by that time, a frankly alarming amount of money will have flowed towards Nvidia, Broadcom, and Taiwan Semiconductor. (Which, in a way, is reassuring. It proves someone knows what they’re doing.)
And so, a handful of these digital tokens find themselves under the gaze of the prognosticators. Not, mind you, because they possess inherent value – let us not be naive – but because they fluctuate. Ah, volatility! The lifeblood of the gambler, the playground of the speculator, and the siren song of the modern investor.
And, remarkably, it seems to be having an effect. A million new subscribers in a quarter. Not since 2019 has Verizon witnessed such a surge. One suspects a generous helping of promotional offers was involved, but let’s not spoil the illusion. After all, a good story is worth a few extra pennies.
The initial fervor surrounding AI has fixated, predictably, on the silicon chip – the visible engine of this new age. This has created a myopia, a dangerous oversight, blinding investors to the companies quietly constructing the underlying skeleton, the very sinews that will support the weight of this burgeoning intelligence. Among these, one entity – Brookfield Infrastructure (BIPC +2.01%)(BIP +1.22%) – has begun to distinguish itself, a slow, deliberate progress documented over the past year.
Three principal forces have combined to elevate FTAI’s standing. First, a partnership forged with Palantir, a purveyor of artificial intelligence. It is a curious alliance, this joining of the tangible world of engines and turbines with the ethereal realm of algorithms and data. Palantir’s offering, their ‘Artificial Intelligence Platform’, promises to bring order to the chaos of inventory, scheduling, and maintenance – a digital hand to guide the mechanics. One cannot help but wonder, however, if this reliance on artificial intellect will ultimately strengthen or diminish the skill and judgment of those who truly understand the workings of these machines. The true test will be whether this partnership yields genuine efficiency, or merely a new layer of complexity and cost.
These whispers, predictably, solidified into action. Netflix launched a bid for Warner Bros. in December, followed by a rival offer, unsolicited, as if attempting to seize a prize already promised. The ensuing weeks were a spectacle, a ballet of billions, played out on the unforgiving stage of Wall Street. Even a respectable fourth-quarter report, a solid performance by any measure, proved insufficient to stem the tide. It is a lesson, perhaps, that in the age of streaming, mere competence is often overlooked in favor of grand, if ultimately illusory, ambition.
Yet, within this apparent disarray lies an opportunity, a chance to acquire these digital tokens at a price less inflated by the fevered imaginings of the multitude. For, let us not forget, volatility is their very nature. They have endured setbacks before, only to ascend to heights previously deemed unattainable. A most capricious temperament, but one that, with a modicum of reason, may be exploited.
ETFs. Exchange-Traded Funds. A way to spread a bet without getting your hands too dirty. Three caught my eye. Vanguard, State Street, and SPDR. They’re not miracles, but they’re a start. A way to play the current hand without betting the ranch.