Bullish on Uber; AVs are viewed as a potential benefit rather than a risk, supported by significant margin improvement (from -40% to +12%).

>> But we we own a lot of great companies, too. So, I I come in with these biases of like, you know, if I have, you know, $10,000 to invest, uh, I could either put it in in in Reddit or Uber or Alphabet or I could put in Hermes or, you know, a million other things.

And, you know, for me, if I'm putting talking about Hermes, like I can't I can't rank it higher than than B TOC because I'm just I'm not that close to to wanting to add it to the portfolio.

it's it's like the same argument people make with Uber where they just kind of like oh you know we don't know what's going to happen. AVs are going to ruin everything. Uh the terminal value is too uncertain.

Um, I understand Uber well enough where I I can see how uh AVs will actually be um a boon to their business.

I think there's a time mismatch between what Uber would experience and what Copot would experience because for Uber I mean how much of the volume of cars on the road is Uber? It's like negligible.

It's almost nothing. So Uber will probably be touched by AVs in like the next 10 years very significantly for and this is all a theory for the total rates or like the um the rates of you know cars crashing to go down significantly you would almost need exclusively AVs on the street everywhere.

Um which is just interesting. I just thought about that recently because um I saw a poll about which company will be more severely damaged or at least impacted by a vis Uber or Copart and the vast majority voted for Uber.

Um and I was a bit you know just like you I'm quite confident that that Uber will probably even be a beneficiary by aggregating that demand but at least I saw the point that I was like okay what I couldn't understand is that Uber will have problems or at least an impact of AVs in like the next 10 years

Whereas AVs in right sharing for Uber is a thing for the next 10 years. Um I think that's that's sort of a mismatch which doesn't change anything about the fact that it's a terminal value concern.

I think I know fully understand why you're so bullish on Uber um because to me we at least two decades like apart from like where we see AVs. Um, which is quite a long time I would say.

We have a really great chart where over the last five years you can see Uber going from negative 40% margins to positive 12% margin. This they have this like 55 point swing.