Good morning, investors. Today we’re covering, Nvidia’s massive valuation, Buffett’s lifetime outperformance as he nears retirement, 19 wide-moat compounders, and much more.
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This Week’s Top Stories

NEED TO KNOW
The Nvidia Bubble
Comparing a company’s market cap to national GDP isn’t a textbook financial ratio—but it paints a clear picture of Nvidia’s scale.
At its peak, Cisco reached 4% of U.S. GDP during the 2000 dot-com bubble. Nvidia now sits four times higher. However, valuation metrics tell a different story.
Cisco traded at 131x earnings back then; Nvidia’s P/E is around 35x—pretty reasonable given its explosive growth in AI and data centers. So, is Nvidia a bubble? Not quite. But the market’s dependence on it is undeniable.

NEW STOCK IDEA
Fiserv’s 44% Plunge
Fiserv’s fundamentals haven’t collapsed as badly as the stock price suggests. Free cash flow per share has been compounding steadily for years, and historically, prices tend to follow FCF.
However, this decline signals a loss of market confidence. The road ahead won’t be easy, especially with competition heating up in payments and fintech infrastructure.
Still, not everyone’s fleeing—legendary investor David Tepper reportedly holds around 3.75% of his portfolio in Fiserv as of Q2 2025.

NEW STOCK IDEAS
19 Wide Moat Stocks
Morningstar’s latest list features 19 wide-moat companies built on durable pricing power and resilience.
Nine are tech, five financials, three healthcare, one industrial, and one real estate—no other sectors made the cut.

NEW STOCK IDEA
Paypal’s Pain Chart
It’s rare to see such a gap between earnings and stock price. PayPal’s EPS has grown 17% annually, yet the market treats it like a fading fintech. The problem isn’t performance—it’s confidence.
After years of stagnation, investors lost faith. But momentum may be turning. The latest earnings brought new partnerships with Mastercard, Google, and OpenAI, a triple earnings beat, and its first-ever dividend.
At today’s valuation, PayPal doesn’t need perfection—just belief. If execution continues, 2026 could be very interesting.

CHART OF THE WEEK
Buffett Vs. World
This chart sums up 60 years of discipline. While markets chased trends—from dot-coms to crypto—Buffett stuck to one playbook: buy quality businesses, reinvest profits, and ignore the noise.
From 19.9% annual returns (versus 10.4% for the S&P 500), Berkshire Hathaway didn’t just beat the market—it rewrote the definition of compounding. Patience. Simplicity. Rational optimism.
WHAT WE’RE WATCHING
Other Big Things Going On
🛒 Amazon pops on Q3 beat.
📉 Burry loads up on $NVDA and $PLTR puts.
🚨 Insider selling surges across major firms.
💼 Layoffs keep piling up.
📱 Meta has worst day in 3 years.