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update us on um China. There's not a day doesn't go by when we don't say the way president said China. Uh but update on your call on have we replaced security concerns with economic concerns? Is that the right thing to do? Do you have long-term worries as an American about about Well, I do. I mean, listen, I I I always it's what keeps my position from being too large because of um worried about different things that can be there.
On the other hand, look, you you do have the same AI drivers there. You've had some movement in that market because people are realizing you have the same sort of things with AI there and you know some of the stocks like Baba and I guess BU yesterday you know with also making chips now and they've been pushing it so they're doing it right and not maybe they're like the H20 uh Nvidia chip or something like that you know of that quality.
So I mean I think the move has been good and the earnings unlike here are still relatively low. I mean you're you know you're talking you know low teens versus where we are. So it's like that. So I understand you know it's not like it was it was ridiculous when you know last year it was single digits.
So you're not as single digits now but you're you know you're not given what the growth rate is and in the multiples you're still relatively um interesting levels if it if you didn't have those other concerns certainly. So, um, yeah, I don't I I think that pretty Have you been um Have you been holding Nvidia all the way?
I I've I've I've haven't held it all the way. I do own Nvidia, but I go back and forth and back and forth a little bit because I do, you know, I will trade a little bit. We've always had some Nvidia position, but not the same size. So, um, anyways, the market seems to want to look for the, you know, the next highly torqued play to the same trends, right?
I mean, you had Broadcom gets its run, Oracle gets its run, is there enough to go around, do you think, for for everybody that's now Look, if you, like I said before, if you didn't believe you had the other China issues you had now, that the Chinese can do whatever they want with their own stock market, but that would be
that would be the one that you already had a big move there. Okay. But, you know, on an earnings basis, which you referred to before, you can make an argument that you still have a lot more there. But it's not easy for it's easy for a small investment. It's not big to have too much of your book there because of the concerns you raised.
Are you boning up on AI? Is that going to be part of your investment thesis in the future? Well, we have we've have a big any way not to be No. I mean, if you look at if you look at our 13F filings, I mean, we're big in the energy names there. We're pretty early there. You know, we do own Nvidia. We own some of the other
Why do we have to look? Can't you just tell us? Why do What's that? Why do we have to look into your 13F? Can't you just tell us? Is it going to kill you? I can tell you what's in the 13F filings. Why can't you just tell us what's there instead of what's in the I I I can I mean we own the energy names like V I'm not saying they're good right now or bad right now, but we own VSD and NRG.
What is good right now? It's a tough market like I said because of the valuations for us. You know, on the other hand, we own we own these stocks because they're moving because of the Fed and we lived you lived. How old are you? Uh I'm I lived it. You lived it in the late '9s. Yeah, I'm just about to
He didn't see Neil Armstrong at all. Yeah, he didn't see Neil Armstrong. He did not see Neil Armstrong. So, you know, we do have those thoughts and we do obviously we we're well known for being in China and that's if you really were look that our easing is a big deal for them because it gives them more room to ease.
So, that would be the other reason. Our easing is their easing. So, that makes it pretty interesting from that perspective. So, but you have moved a lot there. But you could make the argument that if you were going to look at one thing that classically cheap, sure, but there's listen, there's a lot of hair there.
You know, as it goes up from eight times to 13 times, it becomes harder. And at some point, I mean, they've we've had these cycles in the past where all of a sudden the word goes out, we don't like people getting too rich, you know, domestic investors and Well, that's the that's the problem there, right?
So, it's a little bit of a different sort of issue there. So, there's nothing. Look, I I we're having a really good year and I'm so miserable for having a really good year because I still own the market and I can't stand that I own the market. You understand what I'm saying? I don't love the multibables, but how do I not earning own it with an easy, you know, I'm not ever fighting this Fed, especially when the market's telling me have I don't know what it is today, but one and three/4er more cuts, you know, before the end of the year.
So, that's that's a tough thing not to own. But you are at these you pointed out the average. Well, and when people go down the list of, you know, reasons that this kind of valuation gets supported. One of the things they'll say is credit spreads are incredibly tight, right? In other words, there's no macro signal that you should be worried about there.
But on the other hand, that means there's not a lot of cushion, I imagine, in credit. Yeah. No, I mean if you have I mean I'm an old credit guy but yeah I I I mean they're very tight and is there's some kind there's the private uh credit right now that probably results in that you know I'm not I don't own it.
I can't own it. I can own the you know I own the market a little bit. Um listen if I you know I I don't know you know we had a big run because we have sex savings because of co savings. If you want to make a bull case on China still is their excess savings are still humongous because they haven't spent it.
they haven't invested it. I mean, they're huge. I mean, they're we looked at the other day, I don't know if it's true or not, like $7 trillion excess saving versus a normal trend over there. So, this it's on the other hand, again, the market's moves so much. Yeah. You know what? I I have nothing I can't just say I I have anything.
There's no um other side to investment right now. I can tell you why it may be cheap, but there's look look where it went or in the other case, look where we are. And then on the other hand, how do you not stay around for some of this party? I don't have to be as big, but you got to stay for some of the party because the punch bowl is still there.
They haven't taken it away yet. But when they take it away, that's what gets tough for they don't always give much warning. Yeah. Listen, if I had a small fund and I can flip it, you have a larger fund, it's hard to move, you know. So, that's that's the challenge for uh you know, guys that are a little bit larger in size. How do you position? You can't be that big because you can't get
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