I gotta say I think a lot of us were a little surprised by Elon Musk and his investment in Twitter that passive investment nine
point two percent. You are a big investor in Tesla have been for a long time. I think about two and a half percent of your funds
are in Twitter as well. Was this a smart move by Elon. Well I do think for the moment it's passive but he is certainly
making a statement and it's a statement about censorship. He doesn't agree with censorship
for a smooth functioning democracy as he has tweeted I believe. And so I think he's sending a strong signal to the new CEO. And
I also know there's some controversy about why Jack left having to do with this new CEO. So few messages there. Have you talked
to Elon at all about it. No I have not. OK. And would you be buying either more Tesla or Twitter on the news. And let's throw
on Tesla also having this record first quarter. Is this a catalyst to buy more these shares in your view
on Tesla. We post are trades at the end of every day. So many will know that we have. It is the largest position in our
flagship portfolio and in most portfolios where we hold it. But we have been selling recently because of how well it has done
relative to the rest of the stocks in our portfolio. So it has levitated relative and and so it's been a good source of cash.
We've taken profits and redeployed them into other stocks that we thought were being unfairly penalized here. And I think one
of the reasons for that is Tesla's in the indexes the broad base loses and most of our other stocks are not. And that's a big
problem out there in terms of the way capital is being allocated these days in the public equity markets. JAFFE How much would
Tesla have to fall for you to start buying again. Well you know even now we're going to put out another model on
get hub in. I'm going to say within a week. Our last one is from about a year ago. And you'll see from that model that our price
expectation at that time was three thousand dollars. So there's still a lot of running room ahead for Tesla. But relative to the
other names in our portfolio even though that's a you know a trip or nearly a travel other names in our portfolio we believe
we'll deliver much more than that over the next five years because they have been hit so hard. They're not in indexes. And
so when there are risk off periods traditional investors really diversify and sell our stocks as they move closer to their
benchmarks the benchmarks against which they are measured. So it's a great buying opportunity for us. I will say I can't
believe how long that buying opportunity lasted from February of a year ago to a few weeks ago. But we think the concentration of
our portfolios towards our highest conviction names will pay off. As for Twitter. Well it's having a beautiful day to day.
And I think there are some investors relieved that someone is willing to speak up and say hey you're going to ruin this
platform if continue to censor it. In somewhat
random ways. So. So I think that's good. I will say this could be setting up for another leadership change at Twitter. You
never know. And so that will bring with it perhaps some uncertainty uncertainty and dislocation. So especially as it
relates to advertisers. So. So we shall see. So Kathy uncertainty potentially at Twitter a potential leadership
change. Who are the names that you would like to see lead Twitter. Who could do a great job in your opinion. Oh I am not
going to speculate on that. You know and to be honest we haven't thought about it that carefully. There are names flying around
but I wouldn't want to throw out anything there unless unless we felt very strongly. So we will wait to see whose names are put
forth. But whoever is put forth and I'm not jumping to this conclusion automatically I'm saying is one of many
possibilities. It'll either be Agarwal changing the policy of the company to you know really open source the way the
censorship or call people out on censorship or it will be a management change. I don't know what's going to happen at all.
You use the platform a lot. Kathy you own the platform. What are the specific changes that you would like to see perhaps Elon
Musk if he would be vocal about it push for that Twitter. Well I think I think he's already pushing for it. He's been
pretty vocal talking about censorship not being good for the platform which is you know really the world's platform sort of
engagement platform. And yes we do use it liberally. We have not been banished yet. But you never know. You never know. Well I'm
curious to death you know in terms of Elon Musk Kathy you know looking at Twitter making this investment does it make you want
to look at some of the other social opinion platforms that are out there and social media platforms whether it's Metta which
has certainly been beaten up big time. Does it make you want to kind of look at them as effort to further investments or initial
investments. Not really. I think what's happening on the ground is shifting underneath social media. I don't think anyone
understood until Facebook reported or gave guidance for the first quarter how provocatively disruptive ticktock had become.
I mean I know I've seen my children and and their generation spend a lot more time on tech talking and wondered you know how
how would this impact Facebook. But I also know that there's a huge advertising shift from linear TV to social. So you had
those two opposing forces. Well it appears that tick tock is being much more disruptive than we thought. And not just
Facebook but Netflix has talked about it as well. This is competition for the consumers time. And so I think again the
ground is shifting. And if you think about it a Facebook Facebook when you think about Instagram and Facebook itself it's
all about me me me. It's you know high and central. If you think about tick tock it's about how can I entertain you. It's a
completely different DNA. So I'm not so sure that the reals is is going to make it the way that stories. Stories was about me
me me. Facebook got that. Tick Tock is a completely different animal here. Hey Cat got to ask you about Chinese stocks. You
and I have certainly had conversations and you've made investments and you've gotten out. You've got. And I just want
to know where you are in Chinese stocks right now because we've seen quite a bounce back in the last couple of days still down a
lot. If I look at something like the NASDAQ Golden Dragon would you
be committing new money. Do you have faith in Chinese authorities actually making Chinese
companies much more transparent for U.S. investors especially when it comes to financially sensitive information. Well I think
that the government is showing that at the margin it's going to make moves but they're going to be marginal moves in this case.
I think there are three years to comply with our audit requirements.
So they're talking that they're there they're talking. And so we'll see what happens. You know common prosperity to us means
that profit margins are high. Profit margins are not a good thing.
And so we have steered away from anything with a high profit margin.
And we have focused on those companies. And we in our flagship strategy were out completely. We've shifted toward something
like C Limited in Singapore but in a more specialized strategies we're looking for very low margin companies that are consistent
with common prosperity. You know really distributing goods and services into lower tier cities for example or providing
transportation. So expand neo we have but they're very low margin.
It's all about next gen transportation in a world where you know human driven cars are are still relative to the eligible drivers
still very low percentage. So we're interested there. JD Logistics in the logistics area using drones but lots of
innovation. They're doing a lot again pushing into the lower tier cities. So we're a bit gun shy. We don't think that the
Chinese government is thinking very much about creating capital. Well but we know there are huge opportunities consistent with
common prosperity. And so we will have an allocation. But until things change
dramatically meaning more of friendly to capital will probably keep that exposure pretty low. Hey Kathy one thing I mean you
and your team are very good about research right. And you open it up to the world and you want to have these conversations. I
am curious when we look at the world specifically what's going on in Ukraine and Russia China's relationship specifically with
it seems like wanting to continue some kind of relationship with Russia.
How is that problematic do you think for investors going forward and ultimately Chinese companies. And is there kind of a rethink
on what our global markets ultimately will be like. Longer term you are a longer term think individual.
Yes. Yes. Well one thing I do know about China is it's a survivor.
And it really does want to be if it really wants to be in the lead in terms of innovation. So we given our sole focus on
disruptive innovation are not going to dismiss China but these geopolitical strains are not going to be good again. Capital
unfriendly. We do know that innovation solves problems.
And starting with Covid where we had a lot of problems now with the Ukraine Russia the Russian invasion of Ukraine we have a lot
more problems. And so we think innovation generally is going to help solve
those problems. And so we're happy that the market is now turning its sights back to innovation being a good thing and not
index stocks being an area of great opportunity.