GAVIN BAKER (EX FIDO)

Megacap tech now generally trades at a discount to
high quality industrials despite having
more pricing
power, faster growth and higher ROICs.
Most megacap tech is in the 1st %ile of its 20 year
relative P/E vs. high quality industrials. The cheapest it
has ever been.

Also as cheap relative to the market as most of them have ever been.
Ever
There are a lot of fairly asymmetric 20% plus 5 year IRRs.

2 Likes

“Super bullish on megacap tech here - great inflation hedges, broadly
growing revenue/gross profit over 10% with high ROICs, generally trading at
all-time low EV/FCF and P/E multiples and almost all aggressively buying
back stock.”