South Korea and Samsung
South Korea is a strong place to invest now. The country is going through big change. It has a "value up" program modeled on Japan's program, which has had large success. Seoul feels like a developed market, not a developing one. That makes it a good way to buy global leaders like Samsung at very cheap prices.
Samsung's foundry business gets little attention. The strategy is to find great businesses hidden inside a conglomerate. TSMC (Taiwan Semiconductor) is the easy comparison, but Samsung owns the world's second largest foundry business and has invested in the US for a long time. In Taylor, Texas, Samsung has a huge fab (chip factory) coming online. The foundry business runs on very high fixed costs and needs precision manufacturing. As more volume comes online, it will gain both attention and stronger cash flow shown in the financial statements, after many years of heavy spending.
Semiconductor firms like Samsung, TSMC, and Intel positioning in the US is a large strategic move. The chips act and US investment focus have pushed this. A diversified manufacturing base matters. Taiwan carries its own risks based on where it sits in the world, so building elsewhere protects supply. These 2-nanometer fabs are among the most advanced manufacturing on the planet. At 2 nanometers, the parts are tiny, so the process must be extremely precise.
Berkshire Hathaway (BRK/B)
Warren Buffett has stepped away, and Greg Abel has taken over. He rose through the ranks, and the succession planning was handled well. Berkshire holds several important businesses that have been part of its conglomerate structure for a long time. I support Berkshire for the long run.
Abel has already made more investments, deployed more capital, and done share buybacks. Buybacks are a shareholder-friendly move, and the valuation still looks low relative to what the company is worth. Along with a name and leadership change, there may be a culture change, with the company taking a hard look at businesses that could improve more than they have.
Berkshire works well in the current market. Active managers have thinned out, and passive index funds are the most crowded trade. Berkshire offers strong downside protection if markets fall. Investors tend to move into names seen as "safe" like this one. Holding it for a long time creates an option: if other investors pile in and the price rises, that capital can rotate into companies that are badly out of favor.
Canadian Natural Resources (CNQ)
CNQ is far from out of favor. The stock has had a strong run this year and sits near its highs. Talk of a US-Canada trade fight has not hurt it. It gains from current oil prices as a large oil sands producer in Alberta.
CNQ works as a hedge in a portfolio, protecting against edge-case events while still gaining from commodity price moves. It functions almost like an oil manufacturing company: years of heavy investment built the infrastructure to produce oil steadily. The management team owns large stakes themselves. The company has raised dividends for 26 years in a row, including during COVID when oil prices went negative and it still raised its dividend. It offers downside protection while letting investors take part in oil price gains.
