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There is something I have learned after 30 years of managing money that most investors never figure out. The best trades are not the ones that make headlines. They are not the ones that everyone is talking about at cocktail parties. The best trades are the ones you build quietly patiently while everyone else is looking somewhere else.
Right now, while the entire market is obsessed with artificial intelligence, while billions of dollars are chasing the same handful of stocks, while valuations in the hot sectors reach levels that defy any rational analysis, I am doing something different. I am quietly building four positions that almost nobody is paying attention to.
And I believe these positions will generate returns that dwarf what the crowded trades produce. Let me tell you why I am building these positions. Let me explain the analysis behind each one and let me share how I think about finding opportunity where others see nothing interesting. But first, I need to tell you a story that explains why quiet accumulation works so much better than chasing whatever is hot back.
In early 2009, the financial system was in chaos. Lehman Brothers had collapsed. The stock market had crashed. Every headline was about which bank would fail next. The consensus was overwhelming. Banks were uninvestable. Anyone still holding bank stocks was a fool. I started buying bank stocks quietly, methodically.
I did not announce it. I did not give interviews about it. I just accumulated positions while prices were low and sellers were desperate. By the time people realized what I was doing, the trade was already working. Bank stocks had doubled, then tripled, then quadrupled. I made billions on that trade.
Not because I was smarter than everyone else, not because I had information others lacked, but because I was willing to do the work, form my own view, and act on it while the crowd was panicking. That experience taught me something I have never forgotten. The crowd is almost always wrong at extremes.
When everyone agrees something is terrible, it usually is not that terrible. When everyone agrees something is great, it usually is not that great. The opportunity lies in the gap between perception and reality. Right now, I see four areas where perception has diverged dramatically from reality. Four positions where the crowd has become excessively pessimistic.
Four opportunities to buy good assets at prices that make no sense. Let me walk you through each one. The first position I am quietly building is in Chinese technology stocks. I know what you are thinking. China is uninvestable. The regulatory crackdowns destroyed billions in value. The geopolitical tensions make ownership risky.
The economic slowdown means growth is over. Everyone knows you should avoid Chinese stocks. Everyone is wrong. Let me explain what I actually see when I look at Chinese technology companies rather than what the headlines tell me to see. First, the valuations are extraordinary. Major Chinese technology companies trade at singledigit price toearnings ratios.
Companies with hundreds of millions of users with dominant market positions with strong cash flows trading like they are going out of business tomorrow. The pessimism is priced in and then some second the regulatory situation has stabilized. Yes, the crackdowns of 2021 and 2022 were painful. Yes, companies had to adjust their business models.
Yes, investors lost money, but the worst is over. The Chinese government has signaled clearly that it wants to support the technology sector, not destroy it. The policy has shifted from restriction to support third. The fundamentals of these businesses are strong. Chinese consumers are digital natives.
E-commerce penetration is higher than in the United States. Mobile payments are universal. The platforms serving these consumers have massive network effects and high barriers to entry. The businesses are real forth. The geopolitical risk is overstated. Yes, tensions between the United States and China are elevated.
Yes, there is risk of further restrictions, but these companies derive their revenue from Chinese consumers, not American ones. A decoupling scenario hurts American companies trying to sell in China more than it hurts Chinese companies selling to their domestic market. The risk is real. I am not dismissing it.
The Chinese government could take actions that destroy value for foreign shareholders. Geopolitical events could make these stocks untradable. These are tail risks that I take seriously. But the prices already reflect these risks and more. The market is pricing Chinese technology stocks as if disaster is certain.
I think disaster is possible but not probable. And the gap between the market's assessment and my assessment creates opportunity. I am building this position quietly because I do not want to move prices against myself. These stocks are liquid enough to accumulate meaningful positions but not so liquid that I can buy everything I want in a day.
Patience is required and patience is something I have plenty of. The second position I am quietly building is in copper and copper related investments. This is a position that will take years to fully play out. But I believe copper will be one of the most important commodities of the next decade and current prices do not reflect that importance.
Let me explain why copper is so attractive. The energy transition requires copper. Every solar panel, every wind turbine, every electric vehicle, every charging station, every grid upgrade requires significant amounts of copper. There is no substitute. You cannot electrify the economy without copper.
The numbers are staggering. An electric vehicle contains 3 to four times more copper than a conventional vehicle. A single offshore wind turbine contains tons of copper. The buildout of renewable energy infrastructure over the next 20 years will require copper production to increase dramatically. But supply is constrained.
Copper ore grades have been declining for decades as the easy deposits have been depleted. New copper discoveries have become rare. The projects that have been discovered face long development timelines. It takes 7 to 10 years to bring a new copper mine from discovery to production. Investment in new copper supply has been inadequate.
Mining companies face pressure to return cash to shareholders rather than invest in growth. Environmental permitting has become more difficult. Community opposition to new mines has increased. The pipeline of new projects is thin. The result is a structural supply deficit that will persist for years.
Demand is growing because of electrification. Supply is constrained because of underinvestment. Prices must rise to incentivize the investment needed to close the gap. I am building copper exposure through multiple channels. Direct investment in copper futures positions in copper mining companies stakes in royalty companies that benefit from rising copper prices.
This diversified approach reduces company specific risk while maintaining exposure to the copper theme. The position is being built quietly because copper is not what people are excited about right now. It is not artificial intelligence. It is not the latest technology darling. It is a boring industrial metal that most investors ignore.
That inattention creates opportunity. The third position I am quietly building is in energy infrastructure. I am talking about pipelines, storage facilities, processing plants and the companies that own and operate them. This is one of the most attractive riskreward situations I see in the market today.
Energy infrastructure companies, often structured as master limited partnerships or corporations that evolve from MLPs, have been out of favor for years. The narrative is that fossil fuels are dying. So, the infrastructure that moves fossil fuels is also dying. Investors have abandoned the sector. But the narrative is wrong.
Let me explain why. First, energy infrastructure is not the same as energy production. Whether oil prices go up or down, the oil still needs to be transported. Whether natural gas prices rise or fall, the gas still needs to flow through pipelines. Infrastructure companies earn fees based on volumes, not commodity prices.
Their economics are more stable than investors assume. Second, natural gas demand is growing, not declining. Natural gas is the transition fuel. It produces half the carbon emissions of coal when burned for electricity. As the world tries to reduce carbon emissions, natural gas is replacing coal and power generation.
This is happening in the United States, in Europe, in Asia. Natural gas demand will grow for decades. Third, LG exports are transforming the industry. The United States has become a major exporter of liqufied natural gas. This requires infrastructure. Pipelines to move gas to export terminals, liquefaction facilities to cool the gas, storage to manage flows.
The buildout of LG export capacity is a multi-deade investment cycle that benefits infrastructure companies. Fourth, the valuations are attractive. Energy infrastructure companies trade at high singledigit or low double-digit multiples of distributable cash flow. They pay distribution yields of 5 to 8%.
These yields are well covered by cash flow. Management teams are focused on strengthening balance sheets and returning cash to shareholders. The risk is that fossil fuel demand does decline faster than I expect. If natural gas is displaced by renewables more quickly than current projections suggest, volumes through pipelines would decline.
Infrastructure that seemed essential could become stranded. I do not think this is the likely outcome. The energy transition is real, but it will take decades. Natural gas will be needed throughout that transition. The infrastructure serving natural gas markets will remain valuable. I am building this position quietly because energy infrastructure is deeply out of favor.
Institutional investors have divested from fossil fuel. Related assets, retail investors have followed. The selling pressure has pushed prices to levels that do not reflect fundamental value. The fourth position I am quietly building is in select emerging market stocks outside of China. I am talking about companies in countries like Brazil, India, Indonesia, and Mexico.
Countries with growing populations, expanding middle classes, and improving economic prospects. Emerging markets have been unloved for years. The strong dollar has hurt returns for American investors. China's slowdown has dragged down the entire asset class. Concerns about political stability and governance have kept investors away.
But within the emerging market universe, there are individual countries and companies that are extremely attractive. Let me highlight a few themes. India is experiencing a manufacturing renaissance. As companies diversify supply chains away from China, India is a primary beneficiary. The government has implemented reforms to attract foreign investment.
Infrastructure spending is increasing. A young growing population provides labor and consumer demand. Indian stocks have performed well, but select opportunities remain. Brazil has abundant natural resources that the world needs. Agricultural products to feed a growing global population. Iron ore for steel production.
oil from massive offshore deposits. The political situation has stabilized. Valuations on Brazilian stocks are depressed. The currency has been weak, creating opportunity for dollar-based investors. Indonesia is the largest economy in Southeast Asia with a population of over 270 million people. The country is rich in nickel, which is essential for electric vehicle batteries.
Economic growth is steady. The middle class is expanding. Consumer companies serving this market have long runways for growth. Mexico is benefiting from nearshoring as American companies move production closer to home. Manufacturing investment is surging. The proximity to the United States market is a structural advantage.
Mexican stocks trade at reasonable valuations despite improving fundamentals. The risk with emerging markets is always governance and currency. Political changes can destroy value overnight. Currency depreciation can wipe out gains for foreign investors. These risks are real and must be respected. But the valuations in select emerging markets reflect excessive pessimism.
The growth potential is underappreciated. The diversification benefits for portfolios concentrated in American stocks are significant. I am building positions in specific companies where I believe the riskreward is attractive. Now let me step back and explain the common thread connecting these four positions because understanding the pattern matters more than the specific investments.
The common thread is neglect. All four of these areas have been abandoned by mainstream investors. Chinese stocks are untouchable. Copper is boring. Energy infrastructure is politically incorrect. Emerging markets are scary. The consensus is to avoid all of them. When the consensus is that overwhelming opportunities emerge, prices fall below fair value because sellers outnumber buyers.
Good assets become available at attractive prices. Patient investors who are willing to be different can accumulate positions that generate strong returns when sentiment eventually shifts. This is how I have made money throughout my career. Not by chasing what is hot. Not by following the crowd into crowded trades, but by going where the crowd is not.
By doing the work to understand areas that others are ignoring. By having the conviction to act when action is uncomfortable. The second common thread is value. All four positions offer tangible value at current prices. Chinese technology stocks trade at singledigit earnings multiples. Copper is priced below the level needed to incentivize new supply.
Energy infrastructure pays dividend yields of 5 to 8%. Emerging market stocks trade at discounts to develop market peers. I am not buying hope. I am not paying for potential that may never materialize. I am buying cash flows, assets, and competitive positions at prices that provide margin of safety.
If I am wrong about the timing, I can wait. The underlying value supports the positions. The third common thread is catalyst potential. Each of these positions has identifiable catalysts that could trigger a repricing for Chinese stocks. The catalyst could be further policy support from the government, improving economic data, or simply the passage of time as investors realize the worst fears have not materialized.
For copper, the catalyst could be supply shortfalls that push prices higher, increased attention to the metal's role in electrification, or improving sentiment toward commodities, generally for energy infrastructure. The catalyst could be continued growth in natural gas demand, expansion of LG exports, or recognition that these companies offer attractive yields in a world of elevated interest rates.
For emerging markets, the catalyst could be a weakening dollar, improved economic growth, or rotation out of expensive developed market stocks into cheaper alternatives. I do not know when these catalysts will occur. Timing is the hardest part of investing, but I am confident that catalysts will eventually emerge.
Value tends to be recognized eventually. The question is whether you have the patience to wait. Let me also discuss how I am sizing these positions and managing risk because having good ideas is not enough execution matters. I am building all four positions gradually. I am not putting large amounts of capital to work immediately.
I am accumulating over time taking advantage of volatility adding when prices become more attractive. This gradual approach serves several purposes. It reduces the risk of misdiming. It allows me to adjust my view as new information emerges. It prevents me from moving prices against myself in less liquid markets.
It forces discipline. I am also limiting the size of any single position. Each of these four themes is a meaningful allocation, but none is so large that being wrong would devastate the portfolio. Diversification across themes and within themes provides protection against company specific and thesis specific risks.
I am maintaining dry powder. Not all of my capital is deployed in these positions. I have cash available to add if prices become even more attractive. I have flexibility to take advantage of opportunities that may emerge in other areas. This approach may seem overly cautious. If I am confident in these positions, why not go allin?
The answer is humility. I have been wrong before. I will be wrong again. The future is uncertain. Maintaining flexibility and managing risk are essential even when conviction is high. Let me share some additional context on why I believe these quiet positions will outperform the crowded trades that everyone is chasing.
The artificial intelligence trade is crowded beyond anything I have seen in my career. Hundreds of billions of dollars have flowed into a handful of stocks. Valuations have reached levels that require decades of perfect execution to justify. Everyone owns these stocks. Everyone is bullish on these stocks.
What happens when everyone is already bullish? There are no new buyers. The marginal investor who could push prices higher has already bought. Any disappointment, any hint that the future will not be as perfect as assumed triggers selling into a market where buyers are scarce. I am not predicting that AI stocks will crash.
The technology is real, the companies are real, but the prices assume perfection and perfection is rare. Meanwhile, the positions I am building have no crowding at all. Investors are selling Chinese stocks, not buying them. Investors are ignoring copper. Investors are avoiding energy infrastructure.
Investors are underweight emerging markets. What happens when everyone is already bearish? There are no new sellers. The marginal investor who could push prices lower has already sold. Any positive surprise, any hint that the future will not be as bad as assumed triggers buying into a market where sellers are scarce.
This asymmetry is the foundation of my approach. I want to be positioned where the surprises are likely to be positive, where the marginal buyer is more likely than the marginal seller, where the riskreward favors patience. The crowded trades offer the opposite asymmetry. The surprises are more likely to be negative because expectations are so high.
The marginal seller is more likely than the marginal buyer because everyone is already positioned. The riskreward favors caution. I cannot predict exactly when the rotation will occur. It may take months. It may take years. The AI trade may continue working for longer than I expect. The neglected areas may continue being neglected.
But eventually value matters. Eventually prices reflect fundamentals. Eventually the gap between perception and reality closes. And when it closes, the positions I am building quietly will generate returns that justify the patience required. Let me conclude with some thoughts on what this means for individual investors because my approach requires resources and expertise that most individuals do not have.
But the principles apply regardless of portfolio size. The first principle is to avoid the crowd. When everyone is excited about something, be cautious. When everyone is terrified of something, be curious. The crowd is almost always wrong at extremes. Going against the crowd is uncomfortable, but often profitable.
The second principle is to do your own work. Do not rely on headlines or popular opinion to form your investment views. Read, analyze, think independently. The opportunities exist because most investors do not do this work. They follow the crowd because it is easier. Doing the work gives you an edge.
The third principle is to be patient. Good investments take time to work. The market does not recognize value immediately. If you need results in weeks or months, you will be disappointed. If you can wait years, you will be rewarded. The fourth principle is to manage risk. No matter how confident you are, you can be wrong.
Size positions appropriately. Diversify across themes. Maintain flexibility. protect against the scenarios where your thesis fails. The fifth principle is to focus on value by assets that provide tangible value at the price you are paying. Cash flows, earnings, dividends, assets. Do not pay for hope or potential.
Pay for what exists today and get the future upside for free. I am quietly building these four positions because I believe they offer the best risk, adjusted returns I can find in today's market. Chinese technology, copper, energy infrastructure, select emerging markets, none of them are popular. All of them are neglected and that is exactly why they are attractive.
The quiet approach works because it avoids competition. The crowded trades have everyone competing for the same opportunities. The quiet positions have patient capital to themselves. The returns acrew to those willing to be different. This is how I have invested for 30 years. This is how I will continue investing and this is why I am building these positions while everyone else is looking somewhere else.
The opportunity is there for anyone willing to see it. The question is whether you have the independence, the patience and the conviction to act on it. Most people do not. They follow the crowd. They chase what is hot. They buy at high prices and sell at low prices. Do not be most people. Think for yourself.
Look where others are not looking. Build positions quietly while the world is distracted and wait for value to be recognized. That is the path to generating returns that actually matter. That is why I am building these four positions and that is what I wanted to share with you today. But let me go deeper into each of these positions because the details matter when real money is at stake.
Understanding the nuances separate successful investing from hopeful speculation. Starting with Chinese technology stocks. The opportunity here is not just about cheap valuations. It is about misunderstood businesses and overblown fears. Consider what these companies actually do. The major Chinese internet platforms serve over a billion users.
They have built ecosystems that touch every aspect of daily life. E-commerce, payments, cloud computing, entertainment, social networking. The engagement levels and monetization potential rival or exceed their American counterparts. The regulatory crackdown of 2021 was painful, but clarifying the government established boundaries.
Companies adapted. The uncertainty that terrified investors has largely been resolved. We now know what is acceptable and what is not. Companies are operating within those boundaries and generating strong results. The earnings growth has resumed after a period of stagnation during the crackdown. Profits are growing again.
Cost cutting has improved margins. New initiatives in artificial intelligence and cloud computing are bearing fruit. The fundamentals are better than the stock prices suggest. The geopolitical angle requires careful thought. Yes, tensions between the United States and China are real. Yes, there is risk of further escalation.
But I think investors overestimate the probability of worst case scenarios. The Chinese and American economies are deeply intertwined. Both sides have incentives to avoid complete decoupling. The rhetoric may be harsh, but the economic relationship continues. Trade flows, investment flows, technology flows, they all continue despite the headlines.
And even in a decoupling scenario, Chinese technology companies would retain their domestic businesses. They might lose access to American technology and markets, but they would still serve a billion Chinese consumers. The domestic market alone justifies valuations far above current levels. I am sizing this position carefully.
It is a meaningful allocation, but not an enormous one. The tail risks are real. If things go wrong, they could go very wrong. But the expected value calculation weighing probabilities against potential outcomes favors the investment. Moving to copper. Let me explain in more detail why I think this is such a compelling opportunity.
The supply situation is worse than most people realize. Copper production is dominated by a handful of countries. Chile and Peru account for nearly 40% of global production. Both countries face challenges. Water scarcity in the Chilean desert, political instability and community opposition in Peru, labor disputes, and rising costs everywhere.
Or grades have been declining for decades. The average copper content of mined ore has fallen by more than half since the 1900s. Miners have to move more rock to produce the same amount of copper costs rise. Returns on new projects decline. Investment becomes less attractive. The permitting environment has become more difficult globally.
Environmental requirements have increased. Community consent is harder to obtain. Even when deposits are discovered, the path to production is long and uncertain. Many projects never reach production. Now consider the demand side. The International Energy Agency projects that copper demand from clean energy technologies will triple by 2040 under current policies.
Under a net zero scenario, demand would increase sixfold. These are massive numbers. Electric vehicles are the biggest driver. A conventional car contains about 50 lb of copper. An electric vehicle contains 150 to 200 lb. As the world shifts from internal combustion to electric drivetrains, copper demand increases dramatically.
But it is not just vehicles. The charging infrastructure for those vehicles requires copper. The grid upgrades to deliver electricity require copper. The renewable energy generation that produces that electricity requires copper. Every step of the energy transition runs through copper. The math does not work.
Projected demand exceeds projected supply by significant margins. Either demand falls short, meaning the energy transition stalls or prices rise enough to incentivize new supply and demand destruction. I think prices rise. This is not a short-term trade. Copper markets can be volatile. Supply disruptions can cause price spikes that reverse.
Demand can slow during economic downturns. I am not trying to trade these fluctuations. I am positioning for a multi-year trend. The structural supply deficit will not be solved quickly. New minds take years to develop. The underinvestment of the past decade cannot be reversed immediately. The setup for a sustained bull market in copper is compelling.
On energy infrastructure, let me add more color on why this sector is so mispriced. The master limited partnership structure that dominated this sector created problems that are now being resolved. MLPS were tax advantaged vehicles that passed through income to unit holders. But the structure created governance issues, conflicts of interest between general partners and limited partners and distribution policies that prioritize current payments over long-term value.
Many infrastructure companies have converted from MLPs to traditional corporations. This simplifies the structure, improves governance, and broadens the investor base. Corporations can be included in index funds and held by investors who cannot hold MLPs. This structural change is gradually bringing new buyers into the sector.
Balance sheets have improved dramatically during the oil price collapse of 2014 to 2016. Many infrastructure companies had taken on too much debt. They faced financial distress. Distribution cuts destroyed investor confidence. It took years to repair the damage. Today, leverage ratios are much lower.
Coverage ratios, which measure the cushion between cash flow and distributions, are much higher. The financial risk that scared investors away has been substantially reduced. Free cash flow generation has improved. Companies that were previously spending all their cash on growth capital are now generating meaningful free cash flow after capital expenditures and distributions.
This cash can be used to pay down debt, buy back shares or increase distributions. The yield available in this sector is remarkable given the reduced risk profile. 5 to 7% current yields with potential for growth. In a world where 10-year treasuries yield 4% and require taking duration risk, infrastructure yields of 5 to 7% with modest growth look attractive.
The natural gas story is underappreciated. While oil gets the headlines, natural gas is quietly becoming more important. It is the cleanest burning fossil fuel. It provides base load power that renewables cannot consistently deliver. It is essential for industrial processes that cannot easily be electrified.
LG exports have transformed the American natural gas market. What was once a stranded domestic resource now has global demand. Export capacity is expanding. More pipelines are needed to move gas to export terminals. More processing is needed to prepare the gas for liquefaction. The infrastructure buildout has years to run on emerging markets.
Let me provide additional perspective on why I am bullish on select opportunities. The dollar has been strong for years. This strength has been a headwind for emerging market returns when measured in dollar terms. Local currency returns have often been reasonable, but currency depreciation has offset much of the gain for American investors.
I think the dollar is more likely to weaken than strengthen from current levels. The fiscal situation in the United States is deteriorating. Deficits are running $2 trillion per year. Debt to GDP is at historic highs. These imbalances typically lead to currency weakness over time. A weaker dollar would provide a tailwind for emerging market returns.
Local currency gains would be amplified rather than offset by currency movements. The asset class could see substantial inflows as investors seek diversification and value. Beyond the currency opportunity, the fundamental stories in select emerging markets are compelling. India deserves special attention.
The economy is growing at 6 to 7% per year. Manufacturing is expanding as global supply chains shift. Infrastructure investment is accelerating. The government has implemented reforms that improve the business environment. India's demographics are favorable. The working age population is growing. A young population means rising consumption and productivity growth.
This stands in contrast to aging populations in developed markets in China. The Indian stock market is not cheap by historical standards. Quality Indian companies trade at premium valuations. But the growth potential justifies reasonable premiums. I am focused on companies that can compound earnings at high rates for extended periods.
Brazil offers a different opportunity. The country has underperformed for years. Political turbulence has scared investors. The currency has been weak. But conditions may be improving. Brazil has what the world needs. Agricultural products to feed a growing global population. Iron ore to support industrialization.
Oil from massive offshore deposits. As a commodity exporter, Brazil benefits from the same trends driving my copper thesis. Valuations on Brazilian stocks are depressed. Price to earnings ratios are in single digits for quality companies. Dividend yields are attractive. If sentiment improves even modestly, the rerating potential is significant.
Let me also discuss how these four positions interact within a portfolio context because the whole can be greater than the sum of the parts when positions are thoughtfully combined. These four positions provide diversification across geographies, sectors, and themes. Chinese technology is growth exposure in Asia.
Copper is commodity exposure globally. Energy infrastructure is income generating exposure in North America. Emerging markets provide diversification across multiple regions and currencies. The positions have different drivers of return. Chinese stocks depend on policy evolution and sentiment improvement.
Copper depends on supply constraints and demand growth. Energy infrastructure depends on yield compression and distribution growth. Emerging markets depend on dollar weakness and economic growth. This diversity means the positions are unlikely to all work or fail simultaneously. If Chinese stocks struggle due to geopolitical tensions, copper might benefit from supply disruptions.
If emerging markets face currency pressure, energy infrastructure might provide stability through yield. The portfolio construction reduces overall volatility while maintaining exposure to multiple potential sources of return. This is intelligent diversification, not diversification for its own sake.
Each position has a compelling thesis together. They provide balance. Let me close with some thoughts on the mindset required to execute this approach successfully. Building positions quietly requires ignoring the noise. The financial media is designed to capture attention, not to make you money. The headlines are about whatever is exciting today, not about what will generate returns over years.
You have to tune it out. Building positions quietly requires accepting discomfort. When you own positions that others are avoiding, you will feel isolated. Your portfolio will look different from the benchmark. You will underperform during periods when the crowded trades are working. This discomfort is the price of eventual outperformance.
Building positions quietly requires maintaining conviction through volatility. These positions will not go up in a straight line. There will be draw downs. There will be moments when you question the thesis. You have to distinguish between volatility, which is normal, and thesis failure, which requires action.
Building positions quietly requires patience. These are not trades that will work in weeks or months. They are investments that will work over years. If you need quick results, this approach is not for you. If you can wait, the rewards can be substantial. I have been investing this way for 30 years.
The approach has generated strong returns through multiple market cycles. It has allowed me to build substantial wealth while avoiding the catastrophic losses that destroy portfolios. It works because it is difficult. If it were easy, everyone would do it and there would be no excess returns. The four positions I am building quietly represent my current best thinking about where value exists in global markets.
Chinese technology at depressed valuations, copper with structural supply constraints, energy infrastructure with attractive yields, emerging markets with growth potential and dollar sensitivity. Known of these positions is popular. All of them require patience and conviction. Together they represent a portfolio that is different from the consensus positioned for opportunities that others are ignoring.
That is the opportunity. That is why I am building these positions and that is the approach I encourage you to consider as you think about your own portfolio.
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