Investment Q&A

We like all the companies mentioned. We think ABNB’s business model is very interesting;  ABNB operates as a capital-light platform that facilitates bookings, and the company generates strong free cash flow, which management has started to use to repurchase shares at a more aggressive pace recently.Trading at 32x Forward P/E is not cheap, but with expected growth to be around 15% for many years going forward, it should grow into its valuation. The balance sheet is solid with net cash of $8B, and overall we think the fundamentals look attractive here. Regulations so far are not too worrying yet, but could be considered as the cost of doing business. However, the situation could change in the future. We view this as similar to UBER, which has adapted to government restrictions quite well. S&P inclusion should help momentum, but it is something that causes a lot of short term trading and then fundamentals will dictate which way the stock goes. We do like LMN, and from a much smaller base it could do better under the right conditions. But it is about 1/100th the size (currency adjusted) and it is really apples/oranges here. 

On the other hand, we also like LMN and WELL, we think both are attractive small-cap acquisitive companies that are expected to grow strongly for many years. Risk/reward profiles are different for each name, but we are comfortable holding all names mentioned.