Burke Wealth Management, an investment management company, released its “Focused Growth Strategy” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund returned -10.6% in Q1 2026, significantly lagging the S&P 500’s -4.3% returns. The letter noted the quarter as the worst for equities since 2022, with strong corporate earnings being overshadowed by the Iran War and a spike in oil prices. The effects of the AI revolution increased concerns in the investment community. Despite these uncertainties, the firm believes that the strength of the companies in the portfolio positions it to navigate short-term uncertainties and capitalize on long-term opportunities presented by the AI revolution. In addition, you can check the Portfolio’s top five holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Burke Wealth Management highlighted Snowflake Inc. (NYSE:SNOW). Based in Bozeman, Montana, Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform company that enables customers to unify, manage, and collaborate on data across multiple cloud providers. On June 23, 2026, Snowflake Inc. (NYSE:SNOW) closed at $230.41 per share. One-month return of Snowflake Inc. (NYSE:SNOW) was 31.47%, and its shares gained 4.01% over the past 52 weeks. Snowflake Inc. (NYSE:SNOW) has a market capitalization of $79.86 billion.
Burke Wealth Management stated the following regarding Snowflake Inc. (NYSE:SNOW) in its Q1 2026 investor letter:
“Snowflake Inc. (NYSE:SNOW): As a sector, enterprise software stocks peaked at the end of 2024, had a terrible 2025 and an even worse start to 2026. There has been very little distinction between single solution product companies and platform companies that orchestrate workflows across an entire enterprise. Valuations are at 10-year lows, and the prevailing viewpoint is that AI is going to obviate the need for legacy enterprise software subscriptions either by replacing existing software with vibe-coded solutions or by destroying the per seat business model that these companies were built on by eliminating the seats (human employees). Every time Anthropic releases a new set of tools, it seems like enterprise software stocks fall 5%. We have tried to manage through this environment by consolidating around what we view to be best of breed platform companies across different segments of the enterprise software stack (the raw data layer (SNOW), cyber security (CRWD), and multi-cloud platform solutions (NOW, CRM). Unfortunately, our efforts to discriminate between business models and high grade our holdings have not worked as the broader market is doing no such thing at the present time. The fact that each of the enterprise software companies in our portfolio have beaten earnings estimates consistently over the past year and are forecasting revenue acceleration in 2026 has not mattered either. In fact, this has only served to increase our level of frustration with the stock action. Service Now and Crowdstrike grew operating profit over 25% in 20025 while Snowflake more than doubled its operating profit from a somewhat depressed base….” (Click here to read the full text)
