Investment Q&A

We would expect them to drift for a bit, as uncertainty may override potential for a period of time. The companies do not make a lot of announcements, so investors may focus on the AI threat with nothing else to focus on. But if earnings and organic growth can continue to be decent, we think things will settle down over time. CSU, with its giant embedded gains over 15 years, might see a bit more profit-taking. Many investors may reduce exposure, just in case. We think doing nothing, if position size is reasonable, is the best move. We have faith in management here. They will not take any threat lying down, and have the ability to adapt. But yet, their premium valuation may drift until earnings prove they can adapt. In our portfolios we have tried to manage position size risk and will continue to do so, but do not expect giant changes in the short term.