Z
@ZeeContrarian1
Former Wall Street professional. Special situations, awareness, logic, Buddhism.
参加 September 2013
0 フォロー中 47K ファン
Just as Jim Cramer told his followers to get out of the data-center trade, Berkshire Hathaway and Z are telling you to get in:
My picks: $BTDR and $IREN.
Berkshire Hathaway CEO Greg Abel recently said the firm sees a significant opportunity in powering AI data centers. He believes access to power will be the AI boom’s next major bottleneck. Power. Sites. Permission.
I repeat what I said last week: after a 50% drawdown across the data-center names, now is the time to get in. Peak pessimism. Maximum opportunity.
The demand for energy is not an opinion. It is a fact. I have heard all the bear cases, and they are fair. The economics are not fully known. The financing is complicated. The competition is not fully known. There are real risks.
But where else can you find such a clear opportunity to potentially 5X your money over the next five years? And if things do not work out as expected, I do not believe these companies are going to zero.
That does not make this risk-free. It makes it asymmetric. Right now, this is the most asymmetric bet I see anywhere in the market, and it is not even close.
Portfolio allocation after last week’s 20% move: 17%.
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Jim Cramer has already made every investor run away from data-center stocks, while politicians on both sides are now bashing data centers and shouting that they are bad for the environment. It seems to me that we’re at, or very close to, peak fear.
But at the end of the day, data centers are essential to America’s future and its ability to remain the global leader in AI. After a 50% drawdown in many of these stocks, I think this represents a fantastic opportunity for investors willing to look beyond the current fear.
My two favorites right now are $BTDR and $IREN. They offer some of the most asymmetric upside I have seen in any stocks recently. The risk is high. The potential reward is much higher.
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