Welcome back to the Wolf of Harcourt Street Newsletter.
Every month, I'll provide you with an update on my portfolio, including all of the transactions, the current allocation, and my buy list. In addition, I'll share a recap of the articles you may have missed from the previous month.
The real alpha lies in AI bottlenecks.
Most investors are late to the Mag-7 party. While these companies continue to get all the attention, Market Sentiment focuses on identifying these second-order effects early.
They were the first to cover the Optics Trade with the basket now up 51%. Their Advanced Packaging Thesis is also now playing out in real time with the portfolio up 40% in three months. They predicted the AI energy bottleneck last year.
For the next 24 hours, Wolf of Harcourt readers can now unlock full access to Market Sentiment at a special discounted rate.
Transactions
Microsoft (MSFT)
I added to my Microsoft position, as flagged in last month’s review. At the time, the stock was trading at 21x forward earnings, which felt reasonable for a business of this quality.
The company reported FY26 Q3 earnings this week and continues to execute. Revenue grew 18% to $82.9 billion, while net income increased 20% to $31.8 billion.
Uber (UBER)
I added to Uber following its new partnership with Expedia, which allows users to book hotels directly within the app. Over time, this will expand to more than 700,000 properties globally.
Uber One members will earn 10% back in credits on bookings and receive at least 20% off a rolling list of 10,000+ hotels. Vacation rentals from Vrbo will be added later this year, with plans to expand beyond the U.S.
Uber is steadily evolving into a super app, and ironically delivering on much of what Airbnb has long promised. Execution has been strong, and Dara Khosrowshahi continues to stand out as one of the top operators:
“We’re all living through a moment of real cognitive overload: too many apps, too many decisions, too much noise. At the end of the day, our job is to help people reclaim their time, spending less of it managing the logistics of life and more of it actually living.”
Allocation
I’ve been using Portseido to track my portfolio for years, and I highly recommend it. It consolidates all my transactions in one place, while its data visualisation and analytics capabilities guide my future decision-making and, ultimately, enhance my returns.
Sign up using my affiliate link here.
Buy List
Meta (META)
Meta sold off 8% despite what I view as very strong earnings. Revenue grew 33% to $56.3 billion, and operating income increased 30% to $22.9 billion.
At this scale, that level of growth is remarkable. The key driver is AI. Ad impressions rose 19%, while the average price per ad increased 12%.
Meta’s ad engine has become highly effective, allowing it to serve more ads while also improving performance for advertisers. As a result, businesses are willing to pay more.
Importantly, Meta’s ads don’t feel like a tax on the platform, unlike what you might see on Amazon or Google. They are embedded within the content experience. In many cases, users don’t even realise they’re viewing an ad, and that integration should continue to improve.
Nubank (NU)
Nu will report earnings later this month, which I’m looking forward to.
A company growing revenue and EPS north of 30% would typically command a premium multiple. Yet NU trades at just 16x forward earnings.
While that may look elevated relative to traditional banks, NU operates in a different category. Incumbents tend to grow at single digits and carry heavier cost structures, whereas NU is digitally native.
Viewed as a high-growth platform business, the current valuation looks compelling.
In Case You Missed It
Some of the articles you might have missed during the past month:
Final Words
A relatively quiet month in terms of activity. I deployed the remainder of my cash position after holding a modest balance during the recent portfolio consolidation.
A softer Q1 created several opportunities, which I took advantage of. The portfolio is now fully invested once again.
If you'd like to support the work of an independent analyst, you can buy me a coffee. The proceeds will contribute to covering the annual running costs of the newsletter.
Join the community of informed investors – subscribe now to receive the latest content straight to your inbox each week and never miss out on valuable investment insights.
The Chat is a space designed to facilitate, real-time discussions, share knowledge and debate ideas with fellow investors. Join the conversation.
If you found today's edition helpful, please consider sharing it with your friends and colleagues on social media or via email. Your support helps to continue to provide this newsletter for FREE!
Happy investing
Wolf of Harcourt Street
Contact me
Twitter: @wolfofharcourt
Email: wolfofharcourtstreet@gmail.com