What was said:
In a macro environment defined by uncertainty in AI adoption and uneven sector visibility, markets are increasingly leaning toward businesses with tangible assets, understandable earnings drivers, and visible cash flows rather than those reliant on multiple re-rating.
At the same time, there has been a broader reassessment of intangible-heavy and feature-led software models as advancing AI capabilities compress differentiation, challenge seat-based growth assumptions, and contribute to selective weakness across SaaS and growth software, with investors questioning the durability of moats built primarily on intangible assets.
Why we give a ****:
As the market reassesses what constitutes a defensible moat in an AI-accelerating world, asset-backed businesses with embedded infrastructure, real utilisation, and demand-linked cash flows are becoming more attractive due to their capital intensity, operational integration, and harder-to-replicate competitive advantages.
Crucially, these companies are not being displaced by AI but enhanced by it, as AI serves as an efficiency layer that optimises operations, reduces costs, and strengthens margins while the underlying tangible asset base remains the core source of long-term value and resilience in periods of uncertainty.
Relevant stocks: LSE:SGRO, XETR:HDD, NASDAQ:META, NASDAQ:AMZN, NASDAQ:MSFT, NASDAQ:NVDA
Best Content Shared This Week
📺 From Tool to Decision Maker: AI’s Next Leap
Why Watch? Peter Diamandis and guests examine the rise of AI CEOs and the idea that cognition is becoming a commodity. From job disruption to capital allocation, they argue AI is shifting from assistant to decision maker faster than markets expect. A sharp look at how leadership, labour and economic power could change. Watch here.
📺 The Future and Deep Future of AI 2040
Why Watch? Matthew Griffin maps the full AI curve, from today’s narrow systems to AGI, ASI and self-improving intelligence, linking exponential capability gains to energy constraints, cyber risk and the future of work. It’s a fast-paced strategic overview of how agentic AI could reshape organisations, productivity and regulation far sooner than markets expect. Watch here.
Stock Of The Week
A Warehouse of Opportunities
Segro offers exposure to a £18–21bn European portfolio focused on prime urban logistics, big box distribution and an expanding data centre platform, with roughly half of assets in the UK.
The strategy is straightforward: control scarce urban land, lease on multi-year contracts, and capture rental reversion over time. UK renewals are delivering 49–55% uplifts, with around 29% embedded rental upside through 2027, while big box assets provide steadier 2–4% growth and attractive running yields.
New or Updated Showcases
Xeros
- Xeros is commercialising patented water-saving polymer and filtration technologies that reduce microfibre pollution and cut water and energy use in laundry systems, positioning itself at the intersection of sustainability regulation and industrial efficiency as brands and appliance manufacturers seek scalable environmental solutions. Read the investment case.
Tharisa
- Tharisa is a vertically integrated platinum group metals and chrome producer with long-life, low-cost assets in South Africa, offering leveraged exposure to PGM supply discipline and structural chrome demand from stainless steel and energy transition markets. Read the investment case.
Cornish Metals
- Cornish Metals reported parallel progress across underground and surface works at South Crofty, de-risking execution, keeping first tin production on track for mid-2028, and advancing a secure, Europe-based critical tin supply amid tight global markets. Read the investment case.
.svg)
