If there is one positive that can be taken away from this Pandemic experience, It’s how the pandemic placed greater focus on US supply chains, and US semiconductor manufacturing capabilities. Everything from Toothbrushes and toasters to laptops , servers, EV’s, AI, and IOT require the use of Semiconductors. Semi’s were always there (under the covers) but we stopped thinking about them for the most part..

In the 90’s approx 30% of all chip Manufacturing was done In the US, and today Since then the US has offshore most all our semi production. It was only during this pandemic when we needed a new product that wasn’t available did we all sit up as consumers and take notice again – Oh! that product requires the use of Semiconductors and manufacturers are at a stand still and cannot produce product because they cannot acquire the necessary chips due (in part) to supply chain disruptions.

No matter what the “next big thing” is – My guess – it will require the use of Semi’s at least in the foreseeable future.The market is handing the retail investor a gift within the beaten down semi space today that will pay huge dividends (so to speak) down the road for years to come; while folks much much smarter than I figure out the necessary solutions.

Given my age – This is most likely my last big fat long term theme swing of the bat. Semi’s are the “technology space” pitch I have been looking for. Long (and still Accumulating) semi investments on every market dip and feel most comfortable doing so at present valuations.

Opinions vary (This one’s mine)
Just Thoughts over coffee,
– Scoot

The best investments have a considerable margin of safety. This is Benjamin Graham’s concept of buying at a sufficient discount that even bad luck or the vicissitudes of the business cycle won’t derail an investment. ”- Seth Klarman

“Use an appropriate “margin of safety” to manage risk. This way, you will not lose too much when you are wrong, and you will make much more when you are right. This way you can let your portfolio generate higher than market returns with less risk, in a sustainable and stable way”- Li Lu

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