Stock Portfolio - US

Pinduoduo: PDDThis business represents my strongest conviction in my stock investment journey for long years and currently holds one of the largest shares in my portfolio, comprising over 16%. Positioned in the realm of e-commerce, it deviates from the norm by initially focusing on fresh produce, particularly fruits and vegetables. Trailblazing as the first major e-commerce platform for China's farmers, it has now garnered the participation of over 16 million farmers, bridging the gap between them and consumers.

This company is on an aggressive growth trajectory, enjoying certain regulatory advantages in contrast to its counterparts like Alibaba and JD, thanks to its positive impact on Chinese agricultural infrastructure. Pinduoduo (PDD) has successfully set itself apart in the competitive industry with its strategic policy of offering super affordable products. In addition to traditional e-commerce categories, PDD integrates social commerce tools that empower sellers to engage effectively with potential customers. The inclusion of interactive features, such as in-app games, serves the overarching goal of boosting sales.

PDD's subsidiary, Temu, is making significant strides in new markets, scripting success stories in countries where it recently launched. Despite being one of the most downloaded e-commerce apps in numerous countries, PDD continues to demonstrate substantial growth potential. It functions as a veritable cash machine, with astute management adept at handling financial resources effectively.

While acknowledging concerns about the reliability of Chinese business data, the company's robust financial position and competitive pricing advantages are evident. Boasting soaring user numbers and gross profits, PDD still has ample room for expansion. In the ever-evolving landscape of the e-commerce industry, I am confident that Pinduoduo is the one to bet on, given its unique market position and compelling growth trajectory.

Booking: BKNG I hold a highly optimistic view of the travel industry due to several key factors driving demand. These include increased wanderlust among people seeking leisure activities, growing dissatisfaction with work-related stress leading to burnout, the influence of social media trends, facilitation of cross-border tourism, the rise of remote work, and globalization.

Booking Holdings Inc., headquartered in Connecticut, stands out as a prime example of a well-diversified travel business. It ranks among the world's largest online travel companies, offering a wide array of travel-related services such as hotel accommodations, airline tickets, car rentals, vacation packages, cruises, activities at destinations, and travel insurance.

With its strong brand presence, user-friendly platforms, and widespread recognition among travelers, Booking enjoys a significant competitive edge in the market. Expanding its operations to include individual accommodations alongside traditional hotels positions the company as a formidable competitor to Airbnb. Moreover, the surge in payment processing volumes represents a lucrative opportunity for margin expansion, with potential further enhancements through the integration of AI technology.

The endorsement of Booking's stock by prominent investor Michael Burry underscores its appeal. In my assessment, the current valuation presents a compelling opportunity for investors, offering both value and the prospect of sustained growth in the years ahead. My bullish stance extends not only to the broader travel industry but also to Booking as a major and successful player within it.

Alphabet: GOOGL Google stands as one of the most remarkable success stories in business history, a thoroughly diversified digital behemoth that has been a staple in my investment portfolio since my university years. Often referred to as a modern deity, Google, under the umbrella of Alphabet, commands an extensive digital empire encompassing Google itself, YouTube, Google Cloud, Android, Google Maps, Translate, and various other entities. The colossal volume of data amassed by Google over the past decade represents a formidable asset, poised for monetization in future projects.

During market rebounds, Google consistently sees positive returns, given its ubiquitous presence and seamless integration of ads across industries. As the undisputed leader in digital advertising, Google continues to generate substantial cash and stands as a major player in the future of artificial intelligence. Its expansion of generative AI search experiences to over 120 new countries and territories showcases its commitment to global reach.

The promising prospects of Google Cloud and the vast potential of Google Bard further underscore the company's trajectory. Led by the capable Sundar Pichai, Google adopts a strategic approach, focusing on proven, diversified projects and cash-generative businesses rather than overly futuristic endeavors. Financial efficiency has demonstrated a positive trend in recent years, accompanied by a disciplined optimization of the workforce.

While the stock may not be considered cheap, its valuation appears fair. Notably, Pershing Square, led by the respected investor Bill Ackman, has consistently increased its stake in Alphabet, adding to the stock's credibility. For me, Alphabet is not merely a stock; it's a lifelong investment, a testament to its enduring strength, visionary leadership, and continuous evolution in the ever-changing landscape of technology and digital innovation.

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Restoration Hardware: RH previously known as Restoration Hardware Holdings Inc., operates as an upscale retailer specializing in home furnishings. I have a strong belief in the long-term success of this company, largely due to its ambitious leadership under founder Gary Friedman.

Despite recent challenges faced by the furnishings and real estate sectors, including the impact of rising interest rates, RH has demonstrated resilience with solid financials and impressive gross margins. The company's expansion efforts, marked by the opening of new showrooms in both the USA and Europe, further underscore its commitment to growth.

RH's strategic vision goes beyond traditional furniture retailing, aiming to position itself as a global luxury brand. By offering a range of services beyond furnishings, including hospitality and complementary offerings, RH seeks to carve out a distinct niche in the market.

The fact that RH stock has been included in Warren Buffett's portfolio for several years speaks to its potential. As the real estate industry rebounds, I anticipate RH's stock to gain strength, thereby enhancing its reputation and presence worldwide. In summary, I am highly optimistic about the future trajectory of this business.

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Pfizer: PFE I believe the healthcare sector will grow significantly over the next few decades, especially after the pandemic boosted the industry's momentum and led to groundbreaking clinical research. Pfizer stands out with its strong brand, extensive distribution channels, and solid reputation. As of the first half of 2024, Pfizer's valuation looks very appealing. Its large size provides key advantages, such as cost efficiencies and a highly skilled sales team.

Pfizer's phase 3 trial for the breast cancer drug atirmociclib presents an opportunity to strengthen its presence in this field. As its first-generation drug Ibrance faces more competition, atirmociclib could become a major growth driver. Pfizer seems to be signaling that cancer medications will be a core focus in the coming decade, with plans to expand its number of blockbuster oncology drugs to over eight by 2030.

In the first quarter of 2024, Pfizer reported an impressive 11% sales growth in its non-COVID products. The Seagen acquisition played a big role in this growth. Pfizer is expected to keep growing at a moderate rate through 2025, but revenue might drop when some patents expire.

Salesforce: CRM is a cloud-based CRM solution that empowers businesses to forge stronger relationships with their customers. By streamlining internal processes, Salesforce helps companies achieve greater profitability. This focus resonates in today's global environment. With innovation,entrepreneurship, and international trade booming, businesses of all sizes require cloud-based applications that simplify operations. This is where Salesforce thrives.Their established market presence, exceptional customer retention rates, and unwavering commitment to innovation give them a significant competitive edge. The diversity of their product portfolio ensures they cater to a wide range of customer needs, while their operational success speaks volumes about their effectiveness.The future holds immense potential for Salesforce with the integration of Artificial Intelligence (AI) into their offerings. This presents a groundbreaking opportunity to revolutionize the customer experience and unlock new levels of efficiency. While recent earnings reports might raise some concerns, it's important to consider the bigger picture. Salesforce boasts robust financial health with consistent growth in gross profit, increasing cash flow, and sound financial ratios. However,the presence of formidable competitors like Microsoft, Oracle, and Adobe cannot be ignored. These industry giants pose a significant challenge to Salesforce's continued dominance.Despite this competition, Salesforce's unwavering focus on customer success, coupled with their potential to leverage AI for transformative growth, positions them well for the future. This, along with their recent dividend declaration and share buyback plan, paints a promising picture for long-term investors. I am highly confident that Salesforce stock is poised for significant growth as they capitalize on emerging opportunities.

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Kapellen / Belgium
ulascanatilgan@gmail.com