Fund Manager Comments on Market Correction, Netflix, Tech Stocks & "Failed Experiments"

(Free on Substack) Reading Materials (GOOG US, NFLX US, AMZN US, INTU US, FB US)

A version of this was also published on my Twitter account.

Introduction: Below are some fund manager comments on the markets and their portfolio companies that we find of interest, from three “quality”-oriented managers (Troy, Pershing Square and Lindsell Train) and one “value” investor (Smead). Companies mentioned include Google, Netflix, Amazon, Intuit and Meta Platforms.

Valuations May Fall, But Not All Stocks Are Expensive

Managers at the Trojan Fund (including Troy’s founder and CIO Sebastian Lyon) wrote about the market correction year-to-date in their January commentary. They observed that “the likes of Netflix or Facebook plunging more than ~25% a day … are not the markers of a rational, well-functioning market”. In their opinion, “for most developed market equities with good long-term prospects, valuations have experienced a fair wind for many years”, and “share prices are at risk” now with interest rates and Quantitative Easing potentially being reversed.

However, they also ob…