Done Deals: Hohe See and Albatros

{:en} By Jack Purich, Managing Director, Balancing Portfolio Implementation Artificial intelligence (AI) has the potential to revolutionize the way the global economy works and how many businesses generate profits. As a result, markets have reacted with a flurry of excitement to recent AI breakthroughs and seem to have already picked the “winners” of AI. This group of technology giants—nicknamed The Magnificent Seven—include Apple, Amazon, Alphabet (Google), Meta (Facebook), Microsoft, Nvidia and Tesla. Together, they’ve outperformed global equity markets by a stunning 200% over the past five years. In the process, they’ve also become quite expensive compared to trailing earnings (at an average price/earnings ratio of 53x). Given the large technology and data platforms they possess, declaring The Magnificent Seven to be the “winners” of the AI race seems reasonable. But let’s not pretend markets are always right. In the late 1990s, markets were enthralled with another emergent technology with the power to revolutionize the economy—the Internet. An early set of “winners” were selected back then too—names like AOL, Nokia, Microsoft, Cisco and Sun Microsystems. Some of those companies flourished (especially Microsoft). But ultimately, it was a set of smaller players, like Apple and Google, or companies that didn’t yet exist, like Facebook, who came out on top.  For long-term investors, the question is: will history repeat itself or will this time be different? Author Jack Purich Managing Director, Balancing Portfolio Implementation Thanks for subscribing to CPP Investments Sign up for our latest news, insights, reports and other information about CPP Investments Email address * Please enter valid email id Job title Select Job Title Associate Analyst Consultant advisor Manager/supervisor Government official/regulator General manager/director Board director Chairman/board member VP/SVP/EVP President Partner/Owner/Entrepreneur Parent/guardian C-level other Chief Human Resources Officer Chief Marketing Officer Chief Financial Officer Chief Sustainability Officer Chief Digital Officer Chief Technology Officer Chief Operating Officer Educator/professor Student Editor/reporter Other Organization How did you hear about CPP Investments? 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Next Subscribe Thanks for subscribing to CPP Investments Sign up for our latest news, insights, reports and other information about CPP Investments Email address * Please enter valid email id Job title Select Job Title Associate Analyst Consultant advisor Manager/supervisor Government official/regulator General manager/director Board director Chairman/board member VP/SVP/EVP President Partner/Owner/Entrepreneur Parent/guardian C-level other Chief Human Resources Officer Chief Marketing Officer Chief Financial Officer Chief Sustainability Officer Chief Digital Officer Chief Technology Officer Chief Operating Officer Educator/professor Student Editor/reporter Other Organization How did you hear about CPP Investments? Select Source CPP Investments alumni CPP Investments employee or board member CPP Investments portfolio company Online search (e.g. Google) Social media Other What news would you like to receive? * News and updates from CPP Investments Latest news from the Insights Institute Consent * By checking here, you are subscribing to receive our newsletters and other similar types of insights and reports by email, and permit CPP Investments to use cookies and similar technologies to analyze your interactions with our emails. Unsubscribe at any time by clicking the link in the newsletter’s footer. Visit our Privacy Policy for more information. Questions or concerns? Contact us. Please fill in required fields An error has occurred. Please try again later. Five Minutes with Michel Leduc Michel Leduc, Global Head of Public Affairs and Communications, explores evolving industrial policy, concentration risks, and why investors Video January 31, 2024 “Challenge your beliefs”: Investing in times of geopolitical turbulence Over the past several years, Ed Cass has seen first-hand how labour issues, political tensions and technological change have impacted asset Article January 31, 2024 Done Deals: Hohe See and Albatros Offshore wind at scale. That was the draw when CPP Investments bought its 24.5% stake in Hohe See and Albatros in 2018. Article January 31, 2024 {:}{:fr} Auteur : Jack Purich, Directeur Général, Mise en œuvre de Portefeuille d’équilibrage L’intelligence artificielle (IA) a le potentiel de révolutionner le fonctionnement de l’économie mondiale et le nombre d’entreprises qui dégagent des profits. Par conséquent, les marchés ont réagi avec enthousiasme aux percées récentes dans le domaine et semblent avoir déjà choisi les « gagnants » de l’IA. Ce groupe de géants technologiques, surnommé les « Magnificent Seven », comprend Apple, Amazon, Alphabet (Google), Meta (Facebook), Microsoft, Nvidia et Tesla. Ensemble, ils ont surpassé les marchés boursiers mondiaux de 200 % au cours des cinq dernières années. Par la même occasion, ils sont aussi devenus très chers par rapport aux bénéfices des 12 derniers mois (ratio cours/bénéfice moyen de 53x). Compte tenu des vastes plateformes technologiques et de données qu’ils possèdent, il semble raisonnable de déclarer le groupe des Magnificent Seven « gagnant » de la course à l’IA. Mais ne faisons pas comme si que les marchés avaient toujours raison. À la fin des années 1990, l’engouement des marchés portait sur une autre technologie émergente capable de révolutionner l’économie : Internet. À l’époque, un premier groupe de « gagnants » avait également été choisi, parmi lesquels AOL, Nokia, Microsoft, Cisco et Sun Microsystems. Certaines de ces sociétés ont prospéré (en particulier Microsoft). Mais au final, c’est un ensemble de petits acteurs, tels Apple et Google, ou de sociétés qui n’existaient pas encore, à l’image de Facebook, qui l’ont emporté. Pour les investisseurs à long terme, la question est donc la suivante : l’histoire va-t-elle se répéter ou sera-t-elle différente cette fois-ci? Auteur Jack Purich Directeur Général, Mise en œuvre de Portefeuille d’équilibragen Thanks for subscribing to CPP Investments Sign up for our latest news, insights, reports and other information about CPP Investments Email address * Please enter valid email id Job title Select Job Title Associate Analyst Consultant advisor Manager/supervisor Government official/regulator General manager/director Board director Chairman/board member VP/SVP/EVP President Partner/Owner/Entrepreneur Parent/guardian C-level other Chief Human Resources Officer Chief Marketing Officer Chief Financial Officer Chief Sustainability Officer Chief Digital Officer Chief Technology Officer Chief Operating Officer Educator/professor Student Editor/reporter Other Organization How did you hear about CPP Investments? Select Source CPP Investments alumni CPP Investments employee or board member CPP Investments portfolio company Online search (e.g. Google) Social media Other What news would you like to receive? * News and updates from CPP Investments Latest news from the Insights Institute Consent * By checking here, you are subscribing to receive our newsletters and other similar types of insights and reports by email, and permit CPP Investments to use cookies and similar technologies to analyze your interactions with our emails. Unsubscribe at any time by clicking the link in the newsletter’s footer. Visit our Privacy Policy for more information. Questions or concerns? Contact us. An error has occurred. Please try again later. Next Subscribe Thanks for subscribing to CPP Investments Sign up for our latest news, insights, reports and other information about CPP Investments Email address * Please enter valid email id Job title Select Job Title Associate Analyst Consultant advisor Manager/supervisor Government official/regulator General manager/director Board director Chairman/board member VP/SVP/EVP President Partner/Owner/Entrepreneur Parent/guardian C-level other Chief Human Resources Officer Chief Marketing Officer Chief Financial Officer Chief Sustainability Officer Chief Digital Officer Chief Technology Officer Chief Operating Officer Educator/professor Student Editor/reporter Other Organization How did you hear about CPP Investments? Select Source CPP Investments alumni CPP Investments employee or board member CPP Investments portfolio company Online search (e.g. Google) Social media Other What news would you like to receive? * News and updates from CPP Investments Latest news from the Insights Institute Consent * By checking here, you are subscribing to receive our newsletters and other similar types of insights and reports by email, and permit CPP Investments to use cookies and similar technologies to analyze your interactions with our emails. Unsubscribe at any time by clicking the link in the newsletter’s footer. Visit our Privacy Policy for more information. Questions or concerns? Contact us. Please fill in required fields An error has occurred. Please try again later. Five Minutes with Michel Leduc Michel Leduc, Global Head of Public Affairs and Communications, explores evolving industrial policy, concentration risks, and why investors Video January 31, 2024 “Challenge your beliefs”: Investing in times of geopolitical turbulence Over the past several years, Ed Cass has seen first-hand how labour issues, political tensions and technological change have impacted asset Article January 31, 2024 Done Deals: Hohe See and Albatros Offshore wind at scale. That was the draw when CPP Investments bought its 24.5% stake in Hohe See and Albatros in 2018. Article January 31, 2024 {:}