Portfolio Management GQG versus MFG, page-20

Tesla is a renewable energy and AI business. Its able to trade at high multiples because of its growth potential.

Again, you cant use earnings to value growth stocks. This is where growth investing outperforms, especially in a mature market such as the US. I have found that relying too much on current earnings, leads to underpeformance in the long term.

For example, during 2001-2008, Jeff Bezos reinvested all earnings back into the AMZN business. All value investors called him an idiot for not building shareholder value. They assumed the business was destined for failure due to high margins. AMZN short interest was at an ATH. Much like RBL right now actually, which I hold.

From 2009, AMZN showed explosive growth, and the share price appreciated exponentially. I believe this form of investment signalled the death of value investing. Anyways, I digress.

Personally, I see inflows as growth with diminishing returns. Eventually performance takes over as the primary source of FUM growth, once FUM is large enough.

This fund has had massive inflows over a very short period. Thats not a good thing imo. The inflows are not ‘sticky‘ yet, and this fund is at risk to redemptions if underperformance continues. We saw the massive inflows in ARKK during its run and the subsequent massive outflows after their fall. Comparatively, Magellan is tracking the SPY index and has long term investors, who have proven they will stick around.

Either way, will keep on watch list and see how things go. Good talk.