Dear Community,
To kick off the week, I’d like to introduce you to my “Pick-and-Shovel” wikifolio “Euro AI Backbone” (in German: Backbone). More detailed information will follow; for now, this is just a rough overview.
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Background
The market’s focus is primarily on the U.S., while Europe often plays a more subordinate role. Yet recent years in particular have made it clear just how dependent Europe is on other countries such as the U.S., Russia, and China.
By the time the “Orange Man” began his second term, at the very latest, it had become clear:
Europe must become more independent —not only in the field of defense but also in the field of AI.
For nearly five years, Goldman Sachs has maintained an index called “EU AI Capex,” which consists of 64 European stocks. This served as the blueprint for my wikifolio.
The wikifolio was launched on June 18, 2026. For the wikifolio to achieve “Investable” status, it requires, among other things, 10 watchlist additions. Accordingly, I’d appreciate it if you’d add the wikifolio to your watchlist.
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The “Pick-and-Shovel” Approach
The wikifolio aims to cover as much of the value chain for operating modern artificial intelligence as possible.
The focus here is primarily on five areas:
- The Shovels: Semiconductors and machinery (e.g., lithography systems, wafer deposition, chip assembly)
- The Gas: Electricity and energy generation (e.g., wind power, hydroelectric power, solar power plants)
- Highways: Networks and cables (e.g., transformers, high-voltage undersea cables, power grid infrastructure, transmission lines)
- The brain: Automation and data center cooling (e.g., liquid cooling, power distribution cabinets, data networks, control systems)
- The Physical Foundation: Construction, emergency power, and security (e.g., construction of the facilities, emergency power generators, cybersecurity)
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Investment Universe
The portfolio includes European large-, mid-, and small-cap stocks.
Focus: Technology (semiconductor equipment), utilities (electricity, grids), and industrials (automation, specialty cables, data center construction, cybersecurity).
The Core: European market leaders with global monopolies and competitive moats.
The Tech Specialists: Profitable second-tier suppliers as yield boosters.
The foundation: Energy producers, grid operators, and construction specialists for stable cash flows and risk hedging.
Regular rebalancing, which typically takes place at the beginning of each month, prevents concentration risk. While the foundation remains unchanged, the weightings of individual securities may be adjusted. The replacement of individual stocks, the addition of new stocks, or the exclusion of individual stocks can also take place at the beginning of the month.
Initially, the portfolio consists of 37 stocks. There is no cash reserve.
The current allocation of holdings is as follows:
By sector:
- Industrial: 44%
- Utilities: 29%
- Technology: 26%
- Consumer Discretionary: 1%
By country:
- Germany: 24%
- United Kingdom: 14%
- Switzerland: 13%
- Netherlands: 12%
- France: 12%
- Spain: 10%
- Italy: 9%
- Denmark: 2%
- Finland: 2%
- Austria: 2%
Investments are made exclusively in European stocks. None ETFs, no investment certificates, no funds, no leveraged products.
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Initial Holdings
At the start, the portfolio comprises the following 37 securities, sorted by their current weighting:
Infineon $IFX (+1.82%) , ASML Holding $ASML (+1.05%) , Siemens $SIE (+0.1%) , Enel $ENEL (-0.02%) , Rolls-Royce $RR. (-1.03%) , Schneider Electric $SU (+0.01%) , Iberdrola $IBE (-0.71%) , ABB $ABBN (+0.35%) , VAT Group $VACN (+0.57%) , Siemens Energy $ENR (+0.2%) , Prysmian $PRY (+0.58%) , ASM International $ASM (+0.71%) , BE Semiconductor Industries $BESI (-0.58%) , STMicroelectronics $STM (+2.79%) , RWE $RWE (+2.86%) , E.ON $EOAN (+0.47%) , Legrand $LR (-0.38%) , National Grid $NG. (-0.41%) , Nokia $NOKIA (-1.29%) , SSE $SSE (+1.61%) , EDP Renovaveis $EDPR (+2.51%) , Hochtief $HOT (+0.22%) , Red Eléctrica de España $RED (-2.73%) , Nexans $NEX (+1.39%) , United Utilities $UUGRY (+0.33%) , Enagas $ENG (+0.71%) , Centric $CENTR , Spirax-Sarco Engineering $SPX (-0.31%) , Soitex $SOI (+6.29%) , Geberit $GEBN (-0.22%) , Aixtron $AIXA (+1.14%) , Orsted $ORSTED (+0.46%) , Verbund $VER (-0.04%) , SAFRAN $SAF (+0.52%) , Thales $THALES (+0.25%) , NKT $NKT (+1.99%) , Andritz $ANDR (-1.04%)
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Holding Period
Since infrastructure development is likely to continue for several more years, the holding period is clearly geared toward the long term. Short-term trading is avoided.
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Sources of Information
The following sources of information are primarily used to identify stocks:
Companies’ quarterly reports and financial statements.
Analyst reports and industry studies from global investment banks.
Business media and financial publications.
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I’m curious to see how the portfolio will perform over the long term. Monthly updates will keep you informed.
