MGA Wealth Management LLC
Standing Meeting
November 18, 2024

Attendees:

• Alec Klungle
• Michael Brimble
• Cody Yancey
• Teddy Anderson
• Boyd King

Agenda

Color Key: Completed | In Progress/Did Finish | Moved to Next Standing Meeting

• Bullshit
• TOUR Update
• Housekeeping
• Market Discussion
• How do we utilize our leverage?
• Fund Moves

Next Steps:

• All

Notes

• TOUR
  • We will book before Christmas
  • Last week of June
  • Teddy will assist in finding a spot

Housekeeping

• We are going to move these meetings to Monday nights

Market Discussion

• AI will continue to be the big thing tech companies use to leverage their growth.
• MSFT, IBM, GOOG, AAPL will be in these headlines doing shit with AI.
• Where does the value of AI come in? What is going to be the AI “Revelation” in 2025?
  • Chip manufacturers?
  • Hardware/Structure
  • Services
  • AI Software
  • ServiceNow
  • SalesForce
• The Blue Ocean thing
  • iPhone
  • Things that the iPhone allowed to be built made so much money
• PLTR
  • First good example of using AI as a service
• Best value will be brought toward businesses – Agile, smooth, efficiencies
  • How does that come through in the Income Statement
• Next step will be bringing value to customers, but we don’t think that is going to happen in 2025
• We should be looking at companies that provide services to other businesses.
  • B2B services that could be impacted by AI efficiencies
  • Accenture
  • ServiceNow
  • PayCom
  • Which of those are going to be able to bring value leveraging AI.
• Path to profitability for AI products
  • Probably easier for consumer-facing products
• “Everybody’s an AI company”
• Financial Providers
  • Can these be companies that leverage AI in a B2B capacity?
  • Companies that can greatly diminish their workforce thanks to AI efficiencies
• More consolidation that occurs
  • The Metas & Googles are going to start buying out competitors
  • Consolidation of IP among the Mega-Caps
• Healthcare
  • There is a lot of uncertainty around this right now with the new administration.
  • Bobby Kennedy Jr. is now HHS secretary
• Nuclear
  • GE Vernova
  • Bought Hitachi’s nuclear business
• Diamondback Energy (FANG)
  • Good energy play
  • Good oil play
• With this new administration, there could be some very friendly policies for the oil industry
• Occidental Petroleum (OXY)
  • Warren Buffet buying this stuff up
• Self-Driving
  • Trump will be friendly to Elon Musk
  • This will lead regulations to relax on self-driving
  • Google owns Waymo – This could benefit them
• Cody buys Google
• Anthropic
•  

Admiral Fund

• Do we want to take profits anywhere?
• Broadcom is a play to load up more on
• As AI grows, specialized chip producers will become more important
• Broadcom makes more specialized chips
• Get out of Intel and move that money somewhere else.
• Take a little bit of money off the table from WMT and find somewhere else to stick capital with a low beta
• Barbell Approach
  • Growth part of the barbell is going to be the tech stocks like Microsoft & Google
  • The safe, quality part of the barbell is low-beta stocks with dividend growth stocks.
  • Companies with good entry point. With great yield and a dividend that is going to grow 5%/year for the rest of your life.
  • Dividend Kings
  • Call it 60/40 quality core dividend growth/value growth stock

The Trade Desk

• Eaton
•  

Miscellaneous

• The purpose of hedge funds is not to beat the market. The goal of hedge funds is to provide a guaranteed return above the risk-free rate.
•