Thematic Investing Part-5!

In 2023, we published four thematic investing parts focusing on themes (defence, luxury, and green energy) that we believed held long-term potential.

Under the series, we identified various stocks that have given stupendous returns, some of which have become multibaggers.

The following is the performance of the Thematic Investing bets (equal weight):

Thematic Investing 1 & 2( Defence)

Thematic Investing 3 (Luxury)

After the success of the Thematic Investing baskets, we have been frantically searching for the next theme.

Though we had planned and identified the stocks for this series before the announcement of “Deepseek,” the sentiment about anything related to “AI” in the US has suffered irreplaceable damage, whereas the “cheap” Chinese tech stocks have suddenly found the love and warmth of investors.

Nonetheless, some stocks will still benefit from the gargantuan CapEx announcements by big tech companies.

According to the latest announcements by hyperscalers, five companies will spend a combined $300 billion to augment their capacity to handle the data explosion (data centres) and train their AI models.

Thus, our focus remains on the companies benefiting from this CapEx.

PS: We have covered charts and brief about the cross asset moves at the end (so don’t miss them).

We have identified the following companies: