Good morning, investors. Today we’re covering, Warren Buffett’s 22 lesser-known holdings, stocks at decade-low valuations, how Big Tech actually makes money, and much more.
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This Week’s Top Stories
NEED TO KNOW
Warren Buffett’s Secret Stocks
Warren Buffett is sitting on a massive $354 billion cash pile — his biggest ever. He’s been quietly trimming stakes across Berkshire Hathaway’s portfolio, signaling caution as valuations stretch and opportunities thin out.
But while everyone’s watching what he’s selling, we’re more interested in what’s left — especially his 22 smallest positions. These often-overlooked holdings might hold clues to Buffett’s next quiet conviction.
On Monday, the 95-year-old confirmed he’ll be “going quiet” as successor Greg Abel takes over communication and leadership.
Still, Buffett assured shareholders he’s not disappearing — he’ll remain Chairman and a major shareholder, guiding Berkshire’s legacy from behind the scenes.
Nvidia Vs. World
Nvidia just became the first $5 trillion company — only three months after crossing $4 trillion.
Meanwhile, Japan’s SoftBank sold all its Nvidia shares for $5.83 billion — raising cash for founder Masayoshi Son’s next big AI moves.
He’s building his own AI empire with projects like the Stargate data center rollout, a $30 billion investment in OpenAI, and talks to form a $1 trillion AI manufacturing hub in Arizona.
Nvidia now makes up 8% of the entire S&P 500, meaning what Nvidia does next is important. We’ll be watching.
Four Stocks At Decade Lows
$ADBE, $AMZN, $F, and $LULU are all trading at decade-low EV/EBIT multiples — levels we haven’t seen since the early 2010s. Let’s break down what’s driving the pessimism.
Adobe ($ADBE): Investors worry that new AI design tools will chip away at its pricing power and creative software dominance. But Adobe still commands an unmatched ecosystem and recurring subscription base that most competitors can’t replicate.
Amazon ($AMZN): Margins are under pressure as AWS growth cools and retail costs rise. Yet, Amazon’s logistics moat and advertising segment continue to scale rapidly — key drivers that could restore profitability momentum.
FactSet ($F): The stock fell as client growth softened and competition from cheaper data providers increased. Still, FactSet remains one of the most trusted financial data sources with high switching costs and sticky enterprise contracts.
Lululemon ($LULU): Shares dropped as U.S. demand leveled off and global expansion slowed. However, the brand’s loyal customer base, strong margins, and entry into men’s apparel could drive long-term recovery once sentiment turns.
The Big Short 2.0
Michael Burry — the man who predicted the 2008 housing crash — is back with another bold bet. He’s targeting Nvidia ($NVDA) and Palantir ($PLTR) with put options worth nearly $1.1B combined.
Palantir’s CEO Alex Karp called the short “batshit crazy,” but Burry fired back, saying Karp “can’t crack a simple 13F.”
Meanwhile, Palantir’s stock has exploded 28x since 2023, reaching a $422 billion market cap, while Nvidia just became the first $5 trillion company, making up 8% of the entire S&P 500. If Burry’s right, the tech giants fueling the AI era might also be the first to crack it.
CHART OF THE WEEK
How Do They Make Money?
Four giants. Four cash-printing machines. Here’s how Meta, Google, Apple, and Amazon performed in Q3 2025 — and what it says about Big Tech’s momentum.
Meta ($META): Revenue hit $51.2B, up 26% YoY, driven by Reels and WhatsApp ads. Despite a $15.9B one-time tax charge, EPS still beat at $7.25. Zuckerberg raised spending again to fund AI infrastructure — including the sold-out $799 Ray-Ban Display glasses.
Google ($GOOG): Posted $102.3B in revenue (+16%) and $3.10 EPS. Cloud surged 34% to $15.15B, pushing CapEx to $91–93B for 2025. CEO Sundar Pichai noted a $155B AI-driven cloud backlog, showing demand remains red-hot.
Apple ($AAPL): Matched Google at $102.5B revenue and $1.85 EPS. Services hit a record $28.8B, iPhone sales reached $49B, and Tim Cook expects another 10–12% jump next quarter — potentially Apple’s best ever.
Amazon ($AMZN): Dominated with $180.2B revenue (+13%) and $1.95 EPS. AWS grew 20% to $33B, ads reached $17.7B, and Jassy touted AI-fueled momentum. Amazon boosted CapEx to $125B, betting big on cloud and AI.
Other Big Things Going On
💼 Palantir insiders keep selling.
📉 Burry says $ORCL and $META inflated earnings.
💰 Buffett’s Berkshire sold $6B in Q3.
🖥️ CoreWeave, Nvidia-backed, reports Q3 earnings.
🗳️ Trump teases $2,000 tariff dividend.
A Special Thank You
A big thank-you to our friends at Carbon Finance for reviewing our recent work and sharing valuable feedback.
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