📨 Weekly Investment Newsletter – Nº7

1️⃣Investment idea of the week

2️⃣Charts of the Week

Markets remain clouded by elevated uncertainty, and capital continues to rotate defensively, moving away from crowded growth exposures toward safer assets and traditional hedges such as gold. 🛡️📉

This valuation chart reinforce this context. On a 12-month forward P/E basis, the U.S. trades toward the upper end of its historical range, while several international and emerging markets sit closer to or below long-term medians. These charts do not predict outcomes, but they highlight a key point: relative valuations matter, and the U.S. is no longer inexpensive. 📊⚖️

At the same time, we should keep in mind that the long-term dominance of U.S. equities over international markets has lasted more than a decade however by the same logic history reminds us that leadership rotates.

There have been prolonged periods when international markets outperformed, and today’s U.S. dominance should not be seen as permanent or guaranteed for the decades ahead.. ⏳🌍

3️⃣Articles of the Week

Here are a couple of articles I found particularly interesting and constructive.

AltayCap | @altaycap

• Mispriced as a cyclical graphite producer ,not an aerospace asset. The market values Nippon Carbon as a mature industrial, overlooking its strategic stake in a GE/Safran JV supplying critical SiC fibers for next-generation aircraft engines.

• Asset-backed downside, aerospace-driven upside. Trading near book value with balance sheet support, the company offers asymmetric re-rating potential if aerospace production ramps and industrial demand normalizes.

Nippon Carbon (TYO 5302): A 120 Year Old $350 Million Japanese Carbon Manufacturer Trading at 1x Book, Net Cash, and 4.2% Dividend with a Growing Aerospace Materials Division (JV with GE / Safran)

a16z | @a16z

• AI doesn’t kill software , it multiplies it. The article argues that easier software creation (via AI) increases supply and demand, expanding the surface area of what gets built rather than shrinking the industry.

• Tech shifts expand markets, not erase them. Just as past platform transitions created more software and new winners, AI changes the form factor and builders — but strengthens software’s central role in the economy.

Death of Software. Nah.

I hope you find the content useful.😀

May the investment be with you.

Magno Investments Research

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