We believe great returns are made by investing in companies that can scale, where their high-margin products and services can be distributed far and wide to customers, with the intent of creating repeated purchases. Internet technology companies like Microsoft, Alphabet and Amazon fit this bill, and this is the primary reason we have been comfortable holding them through such a challenging economic environment. The Internet provides a low-cost distribution medium and the platform business model allows for repeat usage by facilitating valuable exchanges across an ever-larger number of participants. As usage grows, profits can scale quickly. It is up to the business to continue the innovation of new products to deepen its moat around the platform, either by increasing output or reducing costs. For example, Amazon can deliver most household products at a faster speed and/or lower cost than other retailers due to its delivery network. It continues to build this service (and its value) through even faster delivery times for the same cost. Technology companies were by far the strongest performers in the month of May and have bolstered their year-to-date return to 32% (Figure 1). Their performance can be attributed to increased interest in artificial intelligence (AI), particularly generative AI, whereby new computer outputs (be it software code, imagery, text, or grocery lists) can be created by the AI program.