☕ Most investors could double their exposure and still not have enough

Howdy! 👋 

The rally looks to be taking a slight pause this morning following the S&P 500’s longest winning streak in more than a year.  

Good! 😊 

Big gains are like a big meal which means that having a little time to digest things before the next run higher (or dessert) is a good thing… and a sign they’re working normally. 

Companies and investors who hesitate become footnotes but the ones who lead become empires and legends. 

Here’s my playbook.  

1 – Time to buy Marvell? 

Nvidia's CEO Jensen Huang took the stage at Computex in Taipei and called Marvell Technology the "next trillion-dollar company."  

I don’t disagree. 

Marvell promptly jumped 22% before the opening bell and is now up roughly 19% to $262. 

Is the company truly unique and worth a look? 

Perhaps. 

Marvell makes the connectivity chips that let AI data centers actually talk to themselves — sharing data across thousands of chips at once. Scientists that I’ve spoken with suggest that as AI clusters get bigger, that capability – the “plumbing” – becomes more valuable, not less.  

Here’s the challenge. 

The big money did what they almost always do… bought before Jensen took that stage. Now they need someone to sell to. 

It’s a classic “greed-based” set up which is why my $0.02 is to let things chill a bit first. 

If Marvell has legs, it’ll still be a great company next week … and you'll potentially have a much better entry point to show for your patience. 

Trade Idea(s): LowBall Orders now or Selling Cash Secured Puts if there’s a drop to capitalize on rising volatility could work nicely. If you’ve already got shares, selling covered calls to lock in profits or even generate a little income could be a great way to go, too. 

If you’re an OBAer, I’ve detailed all three of these strategies in past issues as well as the recent OBA Options Boot Camp. Videos are available via the Members Portal. 😀 

Keith’s Investing Tip: Patience and discipline are the most undervalued assets in the market today imho. 

2 – Berkshire buys Alphabet (again) 

I've got to admit, I feel pretty smart for saying that Berkshire's new CEO might get with the program and rush into AI. But to be fair, I could simply have been lucky, so there is that. 🤷🏻‍♂️ 

Berkshire just made a $10B investment in Alphabet; interestingly, this deal is a bigger part of the planned $80B sale Alphabet is using to fund AI. (Read) 

Hmmm. 🧐 

People are interpreting this as a sign that Berkshire thinks Alphabet wins the AI race. 

I get it… Berkshire already increased its Alphabet stake by 225% in Q1 2026, and this private placement piles another $10 billion on top of that. 

I see another side of the coin. 

What this tells me is that Berkshire knows it's behind and that Alphabet was willing to play ball. Winning or not has nothing to do with it. 

The AI race has no off-ramp — but I question whether Alphabet is really the play here when there are other choices with a far better path to profits imho. 

Keith's Investing Tip: Smart money doesn't finance trades — but it absolutely tends to finance 'em. Buy the best, ignore the rest.®

3 – Most investors could double their exposure and still not have enough 

Blackstone just raised $13.1 billion from institutional investors — pension funds, sovereign wealth funds, family offices — all of it specifically earmarked for Asia deals. (Read) 

They were asking for $10 billion but got $13 billion. 

Let that sink in. 

Some of the world's smartest institutional money just oversubscribed an Asia-specific fund by roughly 30%.  

We are not talking ticker tourists or the blue-plate special gang chasing hot stocks. These are the people who get paid to be right with other people's money — and they just voted with $13 billion of it. 

I totally understand where they're coming from having helped institutions make similar decisions over the years.  

Here’s the thing. 

If the average Westerner saw how fast Asia has changed — and continues to change — they'd soil their pants. I've heard "holy s---t" more times than I can count from people visiting for the first time. Or something similar. 

Most investors could double their exposure and still not have enough. 

To be clear, you don't need to go all-in or pick individual stocks to get started but you do need to be honest with yourself about whether your portfolio looks anything like where the world is actually going — or whether it still looks like 1995. 

As always, I’ve got a few ideas if that’s helpful. 

Keith's Investing Tip: Missing opportunity is always more expensive than trying to avoid risks you can’t control. Or, because you simply don’t “like” something (as in you don’t “like” China or anything else in that part of the world). 

4 – Oil, tobacco, booze… and now this 

My how times change. 

It used to be that you could count on three types of investments whenever sentiment took a header… oil, tobacco and booze. 

Customers tend to burn, smoke or drink more of all three when they feel pinched. 

Now, apparently lingerie is on the list too. 

Victoria Secret just raised full year guidance after obliterating Q1 earnings estimates. (Read) 

I find it interesting that the company grew sales with what CEO Hillary Super says were “significantly” fewer promotions, particularly with shoppers 18 to 24. 

Super has been working diligently on redefining and reconnecting the company with its core customers and, it would appear that is quite literally paying off. 

Shares are +46.19% as I type. 

Ordinarily, I wouldn’t even remotely consider a stock like Victoria’s Secret because it’s “nice to have” versus “must have” which is always my preferred hunting. 

But in this case, I’m fascinated by a CEO who clearly understands her marketplace and who appears to be laser focused on reconnecting with the brand’s best.  

Never mind legions of fans, if Wall Street decides sexy is back, I could see $75 a share 12-24 months from now. 

LEAPs could be an interesting and more affordable way to place that bet. 

Attractive, too – pun absolutely intended.  

I might need to do some shopping for my bride, now that I think about it. 😀 

5 – Is it finally time for social media to pay the piper? 

I have long argued that social media execs have never been held accountable for what they’ve foisted upon the world in the name of collecting followers, higher social media ratings and sharing photos of your pet hamster. 

Could we finally be at that point? 

That’s what I find myself wondering this morning. 

Florida's Attorney General just dropped an 83-page lawsuit on OpenAI and CEO Sam Altman — claiming ChatGPT has harmed minors, aided mass shooters, and driven vulnerable users to suicide.  

This is the first state-level lawsuit of its kind.  

FL AG James Uthmeier wants to hold Altman personally liable. (Read) 

I say good. 

The damage has been staggering and well-documented for years.  

• Teen suicide rates climbed in lockstep with smartphone adoption.  
• Social media pile-ons have ended careers, destroyed families, and in too many cases, ended lives.  
• Alleged mass shooters have been radicalized in plain sight on platforms that monetized the outrage.  
• Eating disorders, anxiety, depression. 

Researchers – and erstwhile pundits like yours truly - have been ringing the alarm bell for a decade while the platforms counted their ad dollars. 

Congress has repeatedly hauled Zuckerberg, Dorsey, and the rest of ‘em up to Capitol Hill, made them swear an oath, and... then nothing but stern questions, stammering answers and carefully lawyered non-apologies.  

Nobody’s paid a real price… except the victims. 

MyPOV is that if this suit sticks with Altman – and I think there is a growing probability that it might – the template gets copied fast. Suddenly social media executives who've been skating for a decade while hiding behind the Digital Rights Act are looking at a very different legal landscape than the one they grew comfortable in.  

The "we're just a platform" defense has been the get-out-of-jail-free card for twenty years.  

That’s the thing about “paying the piper” though. 

Pipers don’t forget. 

They wait until somebody pays the bill. 

What to do if you own social media companies? 

Here’s where it gets nuanced. 

Think hard about which AI and social media companies you own — not whether to own them at all. This lawsuit doesn't change the trajectory of the technology but it does potentially have an impact on who survives long enough to profit from it.  

I can think of one that is already a clear winner because they have prioritized safety and privacy from the get-go. Frankly, I hope I’m smart enough to buy more shares because I probably don’t own enough. 

You? 

Bottom Line 

Most investors and traders worry incessantly about what might happen. The most successful focus on what’s likely to happen. 😀 

Now and as always, let's MAKE it a great day! 

Keith 😀