June
Portfolio: 100% cash (VBIL). The S&P is near all-time highs. Shiller is 41.7. Ten-year yield is 4.47%. SpaceX (SPCX) IPO’d this month, raising $75 billion. The largest IPO ever by a wide margin (surpassing Saudi Aramco’s $29 billion in 2019). SPCX’s market cap is currently $2.07 trillion, trading at 110.9x revenue, or almost two Berkshire Hathaways ($1.08 trillion market cap).
Berkshire invested $10 billion in Google’s $80 billion stock offering this month. Goldman Sachs was the lead underwriter of the deal. It was the largest secondary equity offering ever. Proceeds will go toward the AI build-out. Goldman Sachs CEO David Solomon, a day after the deal was announced, said there is more greed than fear in the market. GOOG is up 102.3% over the last year, trading at 27.3x earnings.
Cathie Wood of ARKK purchased $99 million of GOOG this month, too, and today, Dan Ives announced he is leaving Wedbush to launch a “modern merchant bank”. Yesterday, it was reported that President Trump earned $1.4 billion from crypto ventures last year, powered largely by meme coins.
Consumer discretionary is flat. Energy up significantly.
