London-based Blue Whale Capital’s co-founder, Stephen You, doesn’t see a repeat of the dot-com crash on the horizon, according to an article in Bloomberg.
Even with the likes of Michael Burry (of “The Big Short” fame) signaling that investors should beware the frothiness in some parts of the tech sector, Yiu believes that brands like Google and Netflix Inc. are too ingrained in the minds of millennials to go bust.
The scene today is much different than it was two decades ago, Yiu explains in the article. Despite the high prices of many tech companies, they are ubiquitous to people’s lives, and have many lines of business that are mostly profitable.
Blue Whale, which was started in 2017 with a 25 million pound investment from billionaire Peter Hargreaves, has top holdings that are dominated by household name-brands such as Microsoft, Adobe, Visa and Mastercard. That approach has done well for its investors; those that have been there since the beginning are sitting on more than a 110% gain as of last week.
Yiu points to the younger generation being more aware of what’s going on in the tech sector. “…we are probably direct or indirect users of some of these services ourselves,” he told Bloomberg, “whether it’s personally or through business.”
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