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- đ Buffettâs $1 Tip for Smarter Investing
đ Buffettâs $1 Tip for Smarter Investing
Alibaba soars, defense stocks pop, and techâs power problem heats up. Plus: what Buffett told Bob Woodward about investing like a journalist.
Good Morning.
From Nvidiaâs $100B AI power play to Buffettâs timeless investing habits, weâve got a stack of stories today that cut through the noise.
Grab your Cappucino and letâs get into it. âď¸ đď¸
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Market News
đ Stock Indexes Close Lower as Tech Shares Lead Declines
U.S. markets slipped from record highs Tuesday after Fed Chair Jerome Powell warned that achieving economic balance comes with risks, and noted stocks are âfairly highly valued.â The Nasdaq dropped 1%, leading declines, while the S&P 500 dipped 0.6% and the Dow edged down 0.2%. Nvidia fell nearly 3%, erasing most of Mondayâs AI-fueled rally, and Oracle sank over 4% after leadership changes despite its recent AI push.
đ Alibaba Shares Soar After Hiking AI Budget Past $50 Billion
Alibabaâs stock jumped nearly 10% in Hong Kong, hitting its highest level in almost four years, after CEO Eddie Wu announced plans to expand AI spending beyond $53 billion. He predicts global AI investment will hit $4 trillion over the next five years ,and Alibabaâs pushing hard to stay competitive. The company will roll out Qwen models and new data centers in Brazil, France, and the Netherlands, while Chinese chipmakers like ACM Research and Naura Tech surged in response.
âĄď¸ Big Tech's AI ambitions are straining the US power grid
Data center energy demand is set to double by 2028, but the aging U.S. power grid canât keep up, pushing tech giants toward off-grid solutions. Natural gas is emerging as a key player, with companies like Expand Energy, EQT, and Williams all seeing big stock gains. Executives say direct power sources are faster than waiting years for grid connections, and deals like AWS tapping nuclear power from Talen Energy show just how far companies are willing to go to fuel AI growth.
đŞđş European defense stocks rally after Trump comments on Ukraine
Defense stocks rallied, with Europeâs Aerospace and Defense Index up 1%, led by Germanyâs Renk (+4.9%), Swedenâs Saab (+4.5%), and Hensoldt (+4%). The boost followed a surprise shift from President Trump, who now says Ukraine can reclaim all its territory with EU and NATO support. He also backed NATO members shooting down Russian aircraft if they violate airspace, comments made after meeting Zelenskyy at the UN.
đ°ď¸ OpenAI Sells Its Stake to Win AI
Nvidiaâs $100B push into OpenAI is looking less like a partnership and more like a strategic power move. According to CNBC, the deal came together quickly â thanks to private meetings between Sam Altman and Jensen Huang, many during a tech tour with President Trump.
No bankers. No middlemen. Just two AI titans tightening their grip on the future of compute. And yes, regulators are watching. After all, the worldâs most valuable company is making a major play in the worldâs most valuable startup â and nobodyâs quite sure just how much of OpenAI NVIDIA now controls.
Invest & Strategies
𫧠How to trade the AI Bubble
Bank of America says the AI-fueled big tech rally isnât done yet, and the âMagnificent Sevenâ may still have room to run before reaching full-blown bubble territory. Since March 2023, the group has surged 225%, but still trades below historical bubble peaks, according to strategist Michael Hartnett. Despite stumbles earlier this year, optimism around AI, Trump-era policies, and rate cuts has kept the rally alive, and BofA is now floating strategies for riding (or hedging) what could still be a growing bubble.
đ§âđ¨ The Art of Doing Less
In investing, doing less is often doing better, but itâs harder than it sounds. Chasing returns, reacting to headlines, and the psychological urge to "do something" often lead to worse outcomes, even when inaction would serve us best. As Warren Buffett puts it: âWall Street makes its money on activity, you make yours on inactivity.â Yet professional investors are pressured to act, even if that action adds no real value, if only to show theyâre âearningâ their fees.
â° Buffettâs Timeless Lesson
Warren Buffett once told Bob Woodward to approach investing like reporting a story. Every morning, Buffett said, he assigns himself the same question: âWhat is this company worth?â Like a journalist, he digs through years of reports, asks pointed questions, and builds the narrative piece by piece, because investing, at its core, is a journalistic process.
đ¤ What The Top 5 ETF Launches This Year Say About Markets
As Q3 2025 wraps, the story of this yearâs ETF launches is clear: active is in. Of the 500+ new funds, nearly 4 in 5 are actively managed, with names like HIMU, JPHY, BDVL, and DSPY landing among the top for both flows and AUM. While 2024 was dominated by crypto hype, 2025's winners focus on durability, think cash flow, small caps, and risk-adjusted strategies. The ETF landscape is evolving fast, and this yearâs launches show investors want more than just growth, they want control.
đ My Hopes for You
This article is a personal and practical reminder to plan for lifeâs what-ifs. Elliott Appel shares a series of hopes, from having an estate plan to carrying proper insurance, aimed at helping people avoid unnecessary hardship. Itâs less about money and more about peace of mind, responsibility, and protecting the people you love.
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