In his annual year-end letter, our CEO John Graham reflects on the Fund’s performance and key investments, what the year ahead may bring, and why Canadians can count on us.
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?
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Michel Leduc, Global Head of Public Affairs and Communications, explores evolving industrial policy, concentration risks, and why investors must go into today’s markets with “eyes wide open."
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Michel Leduc, Directeur général principal et chef mondial, Relations publiques et communications d’Investissements RPC, explore la politique industrielle en mutation, les risques de concentration et pourquoi les investisseurs doivent aborder les marchés actuels les yeux grands ouverts.
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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
Who will win the global AI race?
Artificial Intelligence (AI) has the potential to revolutionize the way the global economy works and how many businesses generate profits.
Article
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
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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).
