Below are some thoughts from Pragnesh Desai, CEO of one of our awesome partners Galileo Capital, on their New World Portfolio (Bundle). Check it out in your USD Account.
The Galileo Next World bundle was launched 1st October 2018 and therefore the bundle is now a year old.
On a 1 year basis the bundle has returned 3.72%, this obviously includes the sharp markets correction in December 2018. On a year to date basis the bundle has returned just over 19% till end of September.
A closer look at the performers and laggards within the bundle shows that most of the beverage companies; Starbucks, Pepsi and Coke have done very well, delivering notional returns of over 20% minimum on a 1 year basis.
The laggards are the gaming and media companies like Spotify, Netflix, Activision Blizzard and Electronic Arts which lost in excess of 20% notionally.
We replaced Boeing with Uber in August 2019. Boeing was beginning to suffer in the brand perception game, post the unfortunate and tragic incidents with the Boeing 737 Max aircraft.
Truth be told we had been eyeing to include Uber in the bundle, however Uber was not listed at the bundle’s inception. We opted not to include Uber as soon as it listed, in anticipation of some price reduction post a hyped up IPO. At the time Uber was listed in the portfolio it had already experienced a price reduction of over 30% from its peak observed in June 2019.
We believe Uber is a stock more suited to represent the mobility sector for the millennial group and has the widest and most global brand recognition for a mobility services company.
All the 20 stocks that are in the portfolio continue to enjoy the significant brand awareness and recognition globally in their respective sectors.
We continue to feel positive about the returns potential from all these well known brands.
Pragnesh Desai
For more information, check out the Next World Portfolio fact sheet, or contact them on ask@galileocapital.co.za
The Next World Bundle is advised by Galileo Capital, a registered financial services provider (FSP no 21239) and managed by First World Trader (Pty) Ltd t/a EasyEquities, an authorised FSP (FSP no 22588).
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