☕ SoftBank unloads Nvidia, should you?

Howdy! 👋 

Stocks are busy giving up yesterday’s big run. 

Classic. 

Be the hunter, not the hunted. 

Here’s my playbook. 

1 – Unka B. signs off 

Warren Buffett just dropped what could be his final message as Berkshire Hathaway’s CEO — and it’s one for the history books. (Read) 

At 95, the Oracle of Omaha says he’s “going quiet,” handing the reins to Greg Abel after nearly six decades at the helm. He’s also speeding up charitable gifts, trusting his kids to manage his fortune, and praising Abel as the kind of leader who values stewardship over spectacle. 

And then, in true Buffett fashion, he drops a few final truth bombs: “Envy and greed walk hand in hand.” … “Don’t beat yourself up over mistakes.” … “Get the right heroes and copy them.” 

Here’s what I love most, though. 

He’s still betting on America while reminding shareholders not to panic when Berkshire’s stock drops 50% (it’s happened three times), because, as he puts it, “America will come back and so will Berkshire shares.” 

Buffett also dropped some fantastic life advice that I thought you’d enjoy reading if you haven’t seen it yet. 

2 – Burry digs in 

Big short investor Michael Burry is at it again. 

This time, he’s accusing AI hyperscalers of artificially boosting earnings. (Read) 

He says all the major cloud and AI infrastructure providers are understating depreciation expenses by estimating longer lives for the chips than is realistic. 

Translation? 

Oracle and Meta – two companies he singled out – could have overstated profits by 27% and 21% by 2028. Others, too. 

Now what? 

I’ve been railing on accounting rules for some time now when it comes to digital investing in all its guises because they jack long-time, once-sacred cows like PE ratios.  

That’s because GAAP regs – Generally Accepted Accounting Principles – allow companies to spread the cost of that asset out as a function of the company’s estimate of how rapidly that given asset depreciates in value. 

What Burry is picking up on is that if a company estimates longer life cycles, management can lower the yearly depreciation expense, which in turn boosts the bottom line. 

Is he right? 

Technically yes, but practically, probably not. 

Last time I checked, Burry isn't a tech expert, which means he’s missing the forest for the semiconductors. Not uncommon on Wall Street. 

Yes, his grasp of accounting is solid, but this isn’t an accounting story.  

It’s a technology curve story. 

Chip lifecycles are extending because of architectural advances, power efficiency, and AI-driven optimization. GAAP simply hasn’t caught up yet. In other words, what looks like “earnings manipulation” to Burry is actually technological leverage in motion. 

Unfortunately, Burry is a big name based on one major (correct) call into the Mortgage Crisis which means that he could do a lot of damage in a short period of time on top of the nonsense he arguably had a hand in creating last week (even though he’s made plenty of prognostications that have never come true since then). 

The regulators ought to be all over what’s happening like a hawk but, sadly and predictably, they’re not. 

Short-sellers frequently “talk” their book in an attempt to create conditions that benefit their take on things — and the “book” of trading positions they’ve assembled to profit when they scare the beans out of everyone else, even if what they’re alleging isn’t true. 

Here’s a classic video describing the process from a 2006 interview in which CNBC’s Jim Cramer explains dirty tricks short-sellers use to manipulate stock prices. (Watch) 

Warning, your hair will stand up and your jaw will drop. 

MyPOV is simple. 

Depreciation debates don't dent market dominance. 

I'll be sticking with the hyperscalers, thank you very much. 

You? 

Trade Idea: Burry’s bull___ will introduce additional volatility which, if played correctly, could produce some amazing profit potential for those who recognize the “sale rack.” 

OBAers – this development is tailor-made for the “Two” and we’ll be talking about that in the weeks ahead as the story develops. Stay tuned. Chaos always creates opportunity. 

3 – SoftBank sells Nvidia, should you? 

SoftBank sold its entire $5.83 billion stake in Nvidia in October — along with part of its T-Mobile holdings — as it raises capital for what CFO Yoshimitsu Goto called “safe funding” and “asset monetization.” (Read) 

Investors are wondering if they should? 

I’m not, but that’s just me. 

SoftBank is making a strategic reallocation and plans to deploy over $30 billion this quarter into AI ventures, including a massive $22.5 billion bet on OpenAI and $6.5 billion for chipmaker Ampere.  

OpenAI and SoftBank list Nvidia as a partner while Ampere/ARM is a complementary choice. 

4 – The doctor will see your finger 

Smart ring maker Oura expects nearly $2 billion in 2026 sales, doubling again as it rolls out AI-driven glucose, fertility, and blood-pressure tracking. (Read) 

This is a crystal-clear preview of what’s next in wearables.  

I’ve said it before — the line between consumer tech and medical devices is vanishing fast. 

Oura’s great but it pales in comparison to my fave which has considerably bigger scale, an infinitely bigger balance sheet and much broader reach. 

Keith’s Investing Tip: Oura’s rise shows how fast the shift is accelerating. AI is turning passive data into active diagnostics, and the companies that can close that loop will own the next trillion-dollar market. 

5 – Not Me 

I am almost embarrassed to bring this up, but I’ve got to. 

The fraudsters are at it again. 

There’s a slimeball going by Keith Fletcher who has created a Facebook group calling itself the Dividend & Compounding Investor Club with the express goal of duping you into thinking it’s me. 

Keith “Fletcher” and his minions/admins are re-posting my videos after adding his name, illegally using our copyrighted materials, registered trademarks, and more. He’s even posting pictures of me and my family… even our dog, Bryce. 

What scum. 🤦‍️ 

His goal is to lure you into making contact via Telegram, WhatsApp or even by direct message then open an account for 1:1 trading, copy trading or some other fraudulent activity. My guess is you will likely never see your money again if you fall for it. 

• Do NOT engage him or his group administrators under any circumstances. 

• Report the group to Meta/Facebook as criminal/fraudulent. 

It is NOT me. 

Again, sorry for the trouble. 

My lawyers and I have repeatedly asked Facebook to take the group down, but you know how that goes. Facebook evidently prefers to leave thousands of people at risk even though they know there is criminal activity taking place. 

Not surprising, unfortunately, considering a recent report suggesting that fraudulent activity could account for as much as 10% or more of Facebook’s revenue. (Read) 

I’d love to see El Zucko explain this one while under oath in the witness chair, but I digress. 

Meanwhile, and on a much more positive note… 

Bottom Line 

Normally I’d wrap up with a thought about money. 

Today I’d like to wish everyone who’s served a Happy Veterans Day. 

Thank you for stepping up and forward when others could not or would not. And, of course, to your loved ones for all that requires. 

My family and I are grateful. 

And to our own children, a special thank you for YOUR service — Mom and Dad are very proud of you, as is our entire family. 💯 🇺🇸  

As always, let’s MAKE it a great day – you got this! 

Keith 😀