Outside of AI, why invest in the US?
US equities remain the world’s most important market, but passive benchmarks are distorted by AI concentration risk. Durable alpha lies in structural themes beyond AI. Power infrastructure (Constellation, Duke, NextEra) will benefit from grid bottlenecks as data centres drive demand. Re-industrialisation (Caterpillar, Honeywell, Rockwell) reflects reshoring and automation. The energy transition (Dominion, Enphase, ExxonMobil) requires trillions in capex. Housing scarcity (D.R. Horton, Home Depot, Lennar) is a structural imbalance. Healthcare innovation (Abbott, Eli Lilly, UnitedHealth) rides longevity and med-tech advances. Cybersecurity (Cisco, CrowdStrike, Palo Alto) is non-discretionary. Generational wealth transfer (BlackRock, Morgan Stanley, Schwab) reshapes capital flows. The AI productivity super-cycle is real, but thematic allocations across these shifts offer broader, smarter US exposure.
Edition: 220
- 19 September, 2025
Financials
Six insiders spent a total of $4.8m buying stock at ~$57 per share. Gregory Norden (CEO) splashed out $3m. John Adams (Non-Exec) purchased $297k of stock in his largest buy and his first since 2016. Stephen Ellis (Non-Exec) spent $379k - his only purchase in the last 10 years. Furthermore, Peter Crawford (CFO), Richard Wurster (President) and Todd Ricketts (Non-Exec) all bought stock for the first time. While this is likely a co-ordinated cluster of buying post SVB's collapse, these are material purchases. Stock Rank +1.
Edition: 156
- 17 March, 2023
Financials
Andrew Hollingworth provides an update to his bull thesis having previously described the company as the “Amazon of finance” - it offers customers "no-trade-off" between good service and super low pricing. His early analysis revealed how SCHW would become extremely cash generative whilst continuing to grow. That day has now come - its arrival being delayed by its merger with TD Ameritrade. This piece focuses on what Andrew believes investors are missing and why Mr Market’s forecasts remain much lower than his own - 2023E EPS is $5.62 (vs. consensus at $4.80) and 2025E is $8.69 (vs. $6.30). TP $155 (100% upside).
Edition: 148
- 11 November, 2022