Welcome to another edition of the Smart Wealth Newsletter! We appreciate you spending part of your weekend with our family as we discuss the economy, investing, personal finance, and real estate.

I'm Chris McLaughlin, joined by my sons Trip and Frankie, and every week we share the investment ideas, market trends, and long-term strategies that we are personally following. Investing has become a true family passion. We enjoy researching companies together, debating opportunities, and making investment decisions based on long-term fundamentals rather than short-term emotions.

Trip continues his studies at the Freeman School of Business at Tulane University, where he is developing the financial and analytical skills that will serve him well throughout his investing career. Frankie, a National Merit Scholarship Finalist, will begin classes this fall at Georgetown University's McDonough School of Business, where he plans to further expand his knowledge of finance, economics, and business strategy.

As always, our objective is simple: to become better investors each week while sharing the lessons we learn along the way. We believe that disciplined investing, patience, and owning outstanding businesses for many years remain the surest path to building lasting wealth.

Wall Street finally experienced the type of pullback that many investors have been anticipating after one of the strongest rallies in recent memory. Following several months of exceptional gains led by artificial intelligence, cloud computing, and semiconductor stocks, investors used the week ending Friday, July 17, 2026, to lock in profits while reassessing valuations and geopolitical risks.

The Dow Jones Industrial Average closed the week at 52,146.42, declining 0.77% on Friday and finishing the week down approximately 0.9%. The S&P 500 finished at 7,475.69, falling 1.0% on Friday and losing 1.6% for the week. Meanwhile, the technology-heavy Nasdaq Composite declined 1.4% Friday to 25,520.24, finishing the week down nearly 2.9% as semiconductor and AI-related stocks led the selling pressure.

While those numbers appear discouraging on the surface, experienced investors recognize that corrections are a completely normal part of every bull market. In fact, some of the healthiest advances occur after periods of profit-taking because they allow excessive optimism to cool while providing new buying opportunities in quality companies.

One of the biggest stories this week was the continued rotation away from some of the highest-flying AI and semiconductor stocks. Companies that had appreciated dramatically over the past year suddenly became vulnerable as investors questioned whether expectations had simply become too optimistic. Semiconductor shares experienced broad selling pressure, dragging down the Nasdaq much more than the Dow Jones Industrial Average. The pullback serves as an important reminder that even outstanding businesses can become temporarily overpriced when enthusiasm outruns earnings growth. Long-term investors should expect periods like this rather than fear them.

Interestingly, the selling wasn't broad-based across every industry. Energy companies, many industrial firms, defense contractors, and select financial stocks held up relatively well as investors rotated toward sectors perceived as more defensive or better positioned to benefit from higher commodity prices. That type of sector rotation is often a sign that institutional investors are adjusting portfolios rather than abandoning equities altogether.

One of the largest concerns hanging over financial markets continues to be Federal Reserve policy. Inflation has moderated considerably compared to the highs experienced several years ago, but it remains above the Federal Reserve's long-term target. Policymakers therefore continue walking a very narrow path. They must avoid cutting interest rates too aggressively, which could reignite inflation, while also avoiding keeping rates elevated long enough to unnecessarily slow economic growth.

Recent inflation data have generally moved in the right direction, giving investors hope that additional rate increases may not be necessary unless inflation unexpectedly accelerates again. Markets remain focused on every speech delivered by Federal Reserve officials because even subtle changes in language can influence expectations for future interest-rate decisions.

Higher interest rates have undoubtedly slowed portions of the economy, particularly commercial real estate, residential housing affordability, and borrowing activity. Yet consumer spending has remained surprisingly resilient. Employment levels continue to support household incomes, and many corporations still report healthy demand for their products and services. That resilience has allowed the U.S. economy to avoid the recession that many economists confidently predicted only a year ago.

Treasury yields also remain an important piece of the investment puzzle. Higher yields provide competition for stocks because investors can now earn meaningful returns from government bonds without assuming equity risk. At the same time, elevated yields increase borrowing costs for corporations and consumers alike. Companies carrying large debt loads generally face greater pressure when interest rates remain elevated for an extended period, while firms with strong balance sheets and abundant cash continue to enjoy a competitive advantage.

Earnings season now becomes the market's next major catalyst. Investors will soon hear directly from some of America's largest companies regarding revenue growth, profit margins, capital spending, artificial intelligence investments, and management expectations for the remainder of 2026. After such an impressive rally during the first half of the year, simply meeting expectations may no longer be sufficient. Companies likely will need to exceed forecasts and provide optimistic guidance to keep the rally moving forward.

Artificial intelligence remains the defining investment theme of this decade. While the recent correction has pressured many AI-related stocks, the underlying technological revolution continues to accelerate. Businesses across nearly every industry are investing billions of dollars into automation, cloud computing, cybersecurity, machine learning, and generative AI applications. Those investments should continue creating significant opportunities for well-managed technology companies over the coming years.

Perhaps no issue influenced investor psychology more this week than the renewed tensions involving Iran and the broader Middle East. Oil prices moved higher as traders weighed the possibility of supply disruptions and greater regional instability. Energy markets always respond quickly when there is uncertainty surrounding the Persian Gulf because a significant portion of the world's oil production and shipping routes pass through that region. Even modest disruptions can influence global prices almost immediately.

Many readers have asked whether lasting peace between Iran and its neighbors is realistically achievable. The honest answer is that no investor—or policymaker—can confidently predict the outcome. Diplomatic progress is possible, but the region has experienced repeated cycles of negotiation, escalation, and renewed conflict over many decades. Political, religious, and strategic differences remain substantial, and any durable peace would likely require sustained commitments from regional governments as well as major world powers. Recent fighting underscores how quickly conditions can change.

From an investment perspective, the most important lesson is not to make long-term portfolio decisions based solely on geopolitical headlines. Wars, ceasefires, elections, and international disputes often create short-term volatility, but high-quality businesses have historically adapted remarkably well over time. Investors who panic during periods of uncertainty frequently miss the subsequent recovery.

Oil prices deserve continued attention because energy costs affect nearly every aspect of the economy. Higher oil prices increase transportation expenses, manufacturing costs, airline fuel costs, and ultimately consumer prices. If energy inflation were to remain elevated for an extended period, the Federal Reserve could find itself under additional pressure to maintain higher interest rates for longer than markets currently expect.

Despite this week's decline, the broader economic backdrop remains healthier than many anticipated entering 2026. Corporate earnings have generally exceeded expectations, unemployment remains relatively low, consumer balance sheets are still in solid condition, and technological innovation continues creating entirely new markets. Those are not characteristics typically associated with the beginning of a prolonged bear market.

For long-term investors, the current environment reinforces an important principle that our family has followed for years. We do not attempt to predict every short-term movement in the market. Instead, we focus on accumulating ownership in exceptional businesses with durable competitive advantages, outstanding management teams, and long runways for growth. Temporary corrections often provide opportunities rather than reasons to abandon carefully constructed portfolios.

Looking ahead, the next several weeks should prove especially important. Investors will closely monitor corporate earnings, inflation reports, Federal Reserve commentary, Treasury yields, and developments in the Middle East. Any improvement in geopolitical tensions could quickly boost investor confidence, while stronger-than-expected earnings from leading technology companies could renew enthusiasm for artificial intelligence and cloud computing. Conversely, disappointing guidance or escalating international conflict could keep volatility elevated.

Our family's outlook remains cautiously optimistic. Markets rarely move in straight lines, and healthy pullbacks are often necessary to sustain long-term advances. While headlines may continue generating uncertainty, disciplined investors who remain focused on quality, diversification, and patience have historically been rewarded over time.

There are very few companies that I would feel comfortable owning for the next ten or twenty years without constantly worrying about the day-to-day headlines. Microsoft is one of them.

That statement may surprise some readers. Microsoft is now one of the largest companies in the world, with a market capitalization measured in the trillions of dollars. Conventional wisdom often suggests that companies of this size cannot continue growing rapidly. Yet Microsoft continues to prove that exceptional businesses can keep reinventing themselves, finding new markets, and generating enormous amounts of cash for shareholders.

Over the past decade, Microsoft has transformed from a mature software company into the undisputed leader in enterprise cloud computing, artificial intelligence, cybersecurity, productivity software, and business infrastructure. Today, nearly every Fortune 500 company relies on Microsoft products in some capacity. Whether it's Windows, Microsoft 365, Teams, Azure, GitHub, LinkedIn, Dynamics 365, or the rapidly expanding Copilot AI platform, Microsoft's ecosystem is deeply embedded in the daily operations of businesses around the world.

What has changed recently—and why I have become even more bullish—is valuation.

For several years, Microsoft traded at a premium valuation that reflected investors' enthusiasm for its remarkable growth. While I continued to like the company, I often questioned whether the stock price had become a little too optimistic. That concern has eased considerably.

Following this year's market volatility and Microsoft’s continued earnings growth, its price-to-earnings ratio has become much more reasonable for a company of this quality. In my opinion, Microsoft now deserves to be viewed as a value stock hiding inside a technology stock.

Normally, investors associate value investing with banks, utilities, energy companies, or industrial businesses. Microsoft doesn't fit that stereotype. Yet true value investing is not simply buying cheap companies. It is buying exceptional companies at prices that underestimate their future earning power.

That is precisely how I now view Microsoft.

The biggest reason is Azure.

Cloud computing remains one of the fastest-growing segments of enterprise technology, and Azure has become one of the clear leaders alongside Amazon Web Services. Every year, thousands of businesses migrate more of their computing infrastructure from on-premises servers to the cloud. That trend is still in its early innings, particularly among international businesses and government agencies.

Azure benefits from enormous switching costs. Once an organization builds its infrastructure around Microsoft's cloud ecosystem, moving to another provider becomes both expensive and operationally disruptive. That creates recurring revenue and long-term customer relationships that investors love.

Artificial intelligence represents the next major growth engine.

Microsoft was one of the earliest large technology companies to make a significant commitment to OpenAI, and that partnership continues to pay dividends. Rather than viewing AI as a standalone product, Microsoft has integrated AI into nearly every major business line.

Microsoft Copilot is being embedded into Word, Excel, Outlook, PowerPoint, Teams, Dynamics, GitHub, and Windows itself. Instead of asking customers to purchase a completely new product, Microsoft is making its existing software dramatically more valuable.

This strategy creates two advantages.

First, customers become even more dependent on Microsoft's ecosystem.

Second, Microsoft gains an opportunity to charge premium subscription prices while improving customer productivity.

That combination is incredibly powerful.

Another reason I remain optimistic is Microsoft's financial strength.

The company generates tens of billions of dollars in free cash flow annually, giving management tremendous flexibility. Microsoft can invest heavily in artificial intelligence, build additional data centers, acquire promising businesses, repurchase shares, increase dividends, and still maintain one of the strongest balance sheets in corporate America.

Very few companies possess that level of financial flexibility.

Dividend investors should not overlook Microsoft either.

Although the dividend yield is relatively modest, management has consistently increased the dividend year after year. Combined with aggressive share repurchases, shareholders benefit from multiple avenues of capital return.

Management deserves tremendous credit as well.

CEO Satya Nadella has completely transformed Microsoft since taking over leadership. Under his guidance, Microsoft shifted away from being primarily a Windows company toward becoming a cloud-first and AI-first technology leader. Few CEOs in history have overseen such a successful corporate transformation while simultaneously creating enormous shareholder value.

One characteristic I especially appreciate is Microsoft's diversification.

Unlike many technology companies that depend heavily on a single product, Microsoft generates revenue from multiple business segments. Office subscriptions, Azure cloud services, Windows licensing, LinkedIn, GitHub, Xbox gaming, cybersecurity, advertising, enterprise software, and AI all contribute meaningful revenue streams.

That diversification reduces risk while creating numerous opportunities for future growth.

Cybersecurity is another area where Microsoft continues expanding.

As cyber threats become increasingly sophisticated, corporations and governments continue increasing security spending. Microsoft has positioned itself as one of the world's largest cybersecurity providers, creating another recurring source of high-margin revenue.

I also believe investors underestimate Microsoft's pricing power.

Most businesses simply cannot operate efficiently without Microsoft products. When Microsoft modestly increases subscription prices, many customers accept those increases because the software remains essential to daily operations. Companies possessing that type of pricing power typically generate superior long-term returns.

Of course, no investment is risk-free.

Microsoft faces ongoing regulatory scrutiny, increasing competition from Amazon, Google, Oracle, and numerous AI startups. Building AI infrastructure also requires enormous capital expenditures, particularly for advanced data centers and high-performance computing hardware. Investors should expect periods when margins fluctuate as Microsoft continues investing aggressively for future growth.

However, these risks appear manageable given Microsoft's balance sheet, cash generation, and dominant competitive position.

For our family's portfolio, Microsoft checks nearly every box we seek in a long-term investment.

It has:

When I combine those strengths with what I believe is a much more attractive valuation than investors have seen in recent years, I become increasingly confident that Microsoft deserves a place among the highest-quality investments available today.

Could the stock experience additional short-term volatility? Absolutely.

Technology stocks rarely move in straight lines, and market corrections are inevitable. But I believe those pullbacks should be viewed as opportunities to accumulate shares of extraordinary businesses rather than reasons to panic.

Our family has always tried to invest with a five-to-ten-year horizon instead of worrying about what may happen next week or next month. Microsoft fits that philosophy perfectly. It continues to innovate, dominate its core markets, expand into new industries, and generate extraordinary cash flows while rewarding shareholders through dividend increases and share repurchases.

Chris' Rating: ⭐⭐⭐⭐⭐ Strong Buy

Average Wall Street Rating: Strong Buy

12-Month Analyst Price Target: Approximately $620–$675 (consensus range)

In my opinion, Microsoft remains one of the premier blue-chip investments in the world. Investors often think of value stocks as slow-growing companies selling at low multiples. I see Microsoft differently. It is a company with durable competitive advantages, exceptional earnings quality, world-class management, and a valuation that no longer reflects an unrealistic growth premium. That combination is increasingly rare, and it is why Microsoft remains one of the cornerstone holdings in our family's long-term investment strategy.

One of the greatest advantages of investing in real estate isn't just the monthly cash flow or long-term appreciation—it's the incredible tax benefits available to property owners. Among those tax strategies, cost segregation stands out as one of the most powerful tools available to investors looking to legally reduce their tax burden and improve cash flow.

Unfortunately, many investors have heard the term but don't fully understand what it means or how it works. While the name sounds complicated, the concept is actually fairly straightforward.

When you purchase an investment property, the IRS generally requires you to depreciate the building over a long period of time rather than deducting the entire purchase price immediately. Residential rental properties are typically depreciated over 27.5 years, while commercial properties are depreciated over 39 years.

However, not every component of a building has the same useful life.

Items such as carpeting, appliances, cabinetry, decorative lighting, landscaping, sidewalks, fencing, parking lots, and certain electrical or plumbing systems wear out much faster than the structure itself. A cost segregation study identifies these shorter-lived assets and reclassifies them so they can be depreciated much more quickly.

Instead of waiting nearly three decades to receive the full tax deduction, investors can accelerate a significant portion of those deductions into the early years of ownership.

Suppose you purchase a rental property for $500,000.

Without a cost segregation study, most of the depreciable value would be written off gradually over 27.5 years. That produces relatively modest annual depreciation deductions.

Now imagine an engineering firm performs a cost segregation study and determines that 25% of the property's depreciable assets qualify for shorter depreciation lives of five, seven, or fifteen years.

Instead of slowly recovering those deductions over decades, a large portion can be recognized much sooner, significantly reducing taxable income during the first several years of ownership.

Although you haven't spent any additional cash, your tax bill may be substantially lower, leaving more money available to pay down debt, renovate properties, build reserves, or purchase your next investment.

Cash flow is the lifeblood of every real estate business.

Reducing taxes allows investors to keep more of the income their properties generate. That additional cash can be reinvested to accelerate portfolio growth.

Many successful real estate investors understand that it's not just about earning more money—it's also about keeping more of what you earn.

Another reason cost segregation has become so popular is the availability of bonus depreciation.

Current tax law allows qualifying assets identified in a cost segregation study to receive accelerated depreciation. Congress may change these rules in the future, making it important to work with a qualified CPA to determine what benefits are available when you purchase property.

Because tax laws evolve, investors should review the current rules each year rather than assuming previous percentages still apply.

Cost segregation tends to provide the greatest benefit for investors who:

Larger properties generally produce larger depreciation opportunities because they contain more assets that qualify for accelerated treatment.

Absolutely.

Many people mistakenly believe cost segregation is reserved for institutional investors or owners of large office buildings.

That simply isn't true.

Individual investors purchasing single-family rental homes, duplexes, triplexes, fourplexes, vacation rentals, and small commercial properties can often benefit as well. The key question is whether the anticipated tax savings justify the cost of the engineering study.

Cost segregation is a valuable tool, but it isn't appropriate in every situation.

If you expect to sell a property within a short period of time, the benefits may be reduced because some accelerated depreciation may be subject to depreciation recapture when the property is sold.

Likewise, investors in lower tax brackets may not realize the same immediate value as someone with substantial taxable income.

That is why cost segregation should always be viewed as part of an overall tax strategy rather than a one-size-fits-all solution.

One lesson I've learned throughout my real estate career is that successful investors don't try to do everything themselves.

A good real estate agent helps you identify opportunities. A knowledgeable lender structures financing. A property manager protects your investment. An experienced CPA minimizes taxes. And when appropriate, an engineering firm performs the cost segregation study.

Each professional contributes to maximizing your long-term return.

One of my favorite investing principles is simple:

Every dollar you save in taxes is another dollar that can be invested into your next rental property, used to improve an existing asset, or applied toward reducing debt.

Real estate has created more millionaires in America than perhaps any other asset class, and tax efficiency is one of the biggest reasons why.

Cost segregation doesn't create wealth by itself—it simply allows you to unlock deductions sooner, improving cash flow when it's often needed most. For investors committed to building long-term wealth through rental properties, that extra liquidity can make a meaningful difference over time.

As always, I encourage readers to consult with a qualified CPA and a cost segregation specialist before implementing this strategy. Every investor's financial situation is unique, and professional guidance helps ensure you're maximizing the available benefits while remaining fully compliant with IRS rules.

The goal isn't to avoid taxes—it's to legally use the incentives Congress has built into the tax code to encourage investment in housing, commercial development, and economic growth. When used correctly, cost segregation can become one of the most valuable tools in a real estate investor's financial toolbox.

Our Morgan Stanley portfolio continues to focus on owning exceptional businesses with durable competitive advantages, outstanding management teams, and the ability to compound earnings for many years. Rather than chasing short-term market trends, we concentrate on industry leaders that generate significant free cash flow and are positioned to benefit from long-term secular growth.

Microsoft (MSFT) closed the week at $393.82 and remains our largest conviction holding with an outstanding 761.99% gain since our original investment. Wall Street's average rating remains Strong Buy, and my personal rating is ⭐⭐⭐⭐⭐ Strong Buy. Microsoft continues to dominate enterprise software, cloud computing, cybersecurity, and artificial intelligence through Azure and Copilot while producing enormous free cash flow. I believe the company's current valuation offers an attractive long-term opportunity given its earnings quality and leadership in AI. Microsoft develops software, cloud computing services, artificial intelligence platforms, and enterprise productivity solutions used by businesses worldwide.

Alphabet (GOOG) closed at $346.12 and has generated a 101.39% gain. Wall Street maintains a Strong Buy rating, and I also rate the shares ⭐⭐⭐⭐⭐ Strong Buy. Alphabet continues benefiting from leadership in digital advertising, YouTube, Google Cloud, and artificial intelligence while maintaining one of the strongest balance sheets in the technology sector. Alphabet operates the world's leading search engine while providing cloud computing, AI, digital advertising, and video streaming services.

GE Vernova (GEV) closed the week at $1,057.84 and remains one of our best investments with an extraordinary 930.57% gain. Wall Street rates the shares Buy, while I maintain a ⭐⭐⭐⭐⭐ Strong Buy rating. Global demand for electricity, renewable energy, and grid modernization continues accelerating, providing GE Vernova with an exceptional long-term growth runway. GE Vernova designs power generation equipment, renewable energy systems, and electric grid technologies.

GE Aerospace (GE) finished at $348.83 and has appreciated 252.69%. Wall Street continues assigning a Strong Buy rating, and I also rate the company ⭐⭐⭐⭐⭐ Strong Buy. Commercial aviation demand and defense spending remain strong, supporting continued earnings growth and long-term shareholder value. GE Aerospace manufactures commercial and military aircraft engines and aviation technologies.

Apple (AAPL) closed Friday at $333.74 and has produced a 122.40% gain. Analysts maintain a Buy rating, and I also assign a ⭐⭐⭐⭐ Buy rating. Apple's growing services business, loyal customer base, and expanding AI ecosystem continue supporting long-term earnings growth. Apple designs consumer electronics, software, and digital services used around the world.

Costco Wholesale (COST) finished the week at $940.87 and has generated a 98.73% gain. Wall Street rates the shares Buy, and I also rate Costco ⭐⭐⭐⭐ Buy. Costco's membership model and exceptional customer loyalty continue producing consistent long-term growth. Costco operates membership warehouse clubs serving millions of consumers worldwide.

Procter & Gamble (PG) closed at $149.98 and has appreciated 83.04%. Analysts maintain a Buy rating, while I assign ⭐⭐⭐⭐ Buy. P&G continues providing dependable earnings, dividend growth, and defensive characteristics regardless of market conditions. Procter & Gamble manufactures leading household and consumer products.

Amazon (AMZN) closed the week at $247.23 and has gained 18.85%. Wall Street maintains a Strong Buy rating, and I continue rating Amazon ⭐⭐⭐⭐⭐ Strong Buy. Amazon remains a leader in e-commerce, cloud computing, digital advertising, and artificial intelligence infrastructure. Amazon operates the world's largest online retailer and one of the leading cloud computing businesses.

Meta Platforms (META) closed Friday at $646.01 and has generated an 11.43% gain. Analysts continue assigning a Strong Buy rating, while I also rate the shares ⭐⭐⭐⭐⭐ Strong Buy. Meta continues monetizing artificial intelligence across its family of social media platforms while producing exceptional cash flow. Meta operates Facebook, Instagram, WhatsApp, Threads, and leading digital advertising platforms.

Kroger (KR) finished the week at $58.82 and has appreciated 19.68%. Wall Street currently rates Kroger Hold, and I also assign a ⭐⭐⭐ Hold rating. Grocery retail remains a stable defensive business that generates dependable earnings regardless of economic conditions. Kroger operates one of America's largest supermarket chains.

Marvell Technology (MRVL) closed at $188.68 and is currently down 31.19%. Analysts maintain a Moderate Buy rating, while I continue rating the shares ⭐⭐⭐⭐ Buy. Marvell remains well positioned in AI networking, cloud infrastructure, and advanced semiconductor technologies despite recent volatility. Marvell develops semiconductor solutions for data centers, networking, storage, and AI infrastructure.

Micron Technology (MU) finished Friday at $848.95 and is currently down 29.05%. Wall Street continues assigning a Strong Buy rating, and I also rate the shares ⭐⭐⭐⭐ Buy. Growing demand for AI servers and advanced memory should continue benefiting Micron over the long term. Micron manufactures memory and storage semiconductors used throughout the global technology industry.

Trip continues to build his portfolio with a long-term mindset while studying at the A.B. Freeman School of Business at Tulane University. Rather than chasing speculative investments, he is focusing on owning innovative companies with durable competitive advantages and significant long-term growth potential. His portfolio remains concentrated, allowing his highest-conviction ideas to have the greatest impact over time.

GE Vernova (GEV) closed the week at $1,057.84 and has produced an incredible 988.92% gain since Trip initiated his position. Wall Street's average rating is Buy, while Trip continues to rate the stock ⭐⭐⭐⭐⭐ Strong Buy. With global electricity demand surging due to artificial intelligence data centers, grid modernization, and renewable energy investments, GE Vernova remains one of the premier long-term infrastructure investments. GE Vernova designs and manufactures power generation equipment, renewable energy systems, and electric grid technologies.

Micron Technology (MU) closed at $848.95 and is currently down 1.64% since purchase. Wall Street maintains a Strong Buy rating, and Trip continues to rate the shares ⭐⭐⭐⭐ Buy. While the position has experienced volatility, Micron remains one of the world's leading memory manufacturers and should benefit tremendously from expanding AI server demand over the next decade. Micron develops advanced memory and storage semiconductors used in data centers, AI systems, and consumer electronics.

Intel (INTC) closed the week at $95.04 and currently shows a 25% loss. Analysts currently rate Intel Hold, while Trip assigns a ⭐⭐⭐ Hold rating. Intel continues working through a multi-year turnaround focused on expanding its foundry business and regaining manufacturing leadership. Intel designs and manufactures microprocessors, semiconductor technologies, and advanced computing platforms.

Costco Wholesale (COST) finished the week at $940.87 and has generated a 104% gain since Trip's original investment. Wall Street maintains a Buy rating, while Trip continues assigning ⭐⭐⭐⭐ Buy. Costco's membership model, pricing power, and consistent execution continue making it one of the highest-quality retail businesses in America. Costco operates membership warehouse clubs serving millions of loyal customers worldwide.

Trip's portfolio demonstrates the confidence and patience that every young investor should develop. By focusing on industry leaders with long-term growth opportunities instead of trying to trade short-term market swings, he continues building an excellent foundation for decades of wealth creation.

Frankie continues preparing to begin classes this fall at Georgetown University's McDonough School of Business, and his portfolio reflects an impressive understanding of long-term investing. As a National Merit Scholarship Finalist, Frankie has consistently demonstrated discipline by focusing on companies with innovative technologies, outstanding management teams, and substantial future growth potential.

Navitas Semiconductor (NVTS) closed the week at $11.46 and continues showing an outstanding 54% gain since Frankie's original purchase. Wall Street's average rating remains Moderate Buy, while Frankie continues assigning ⭐⭐⭐⭐ Buy. Although the stock has experienced significant volatility this year, Navitas remains a leader in gallium nitride (GaN) and silicon carbide power semiconductor technology that should benefit from electric vehicles, AI data centers, and fast-charging applications. Navitas develops next-generation power semiconductors that improve energy efficiency across numerous industries.

GE Vernova (GEV) closed Friday at $1,057.84 and has generated an extraordinary 988.92% gain. Wall Street continues rating the company Buy, while Frankie assigns ⭐⭐⭐⭐⭐ Strong Buy. Rising electricity demand from artificial intelligence infrastructure, utility modernization, and renewable energy investments continues supporting a very attractive long-term outlook. GE Vernova designs advanced power generation equipment and electric grid infrastructure.

Costco Wholesale (COST) finished the week at $940.87 and has appreciated 98.79%. Analysts maintain a Buy rating, while Frankie also rates the shares ⭐⭐⭐⭐ Buy. Costco's recurring membership revenue, disciplined management, and loyal customer base continue producing dependable earnings growth. Costco operates one of the world's largest membership warehouse retailers.

Nebius Group (NBIS) closed at $177.71 and currently shows a 109% gain. Wall Street's average rating remains Strong Buy, while Frankie assigns ⭐⭐⭐⭐⭐ Strong Buy. Nebius continues expanding its artificial intelligence cloud infrastructure business and remains one of the more interesting emerging AI investments. Nebius provides cloud computing infrastructure and artificial intelligence services.

ServiceNow (NOW) closed Friday at $103.24 and currently shows an 13.31% gain. Analysts continue assigning a Strong Buy rating, while Frankie rates the company ⭐⭐⭐⭐⭐ Strong Buy. ServiceNow remains one of the fastest-growing enterprise software companies as organizations continue automating workflows through artificial intelligence. ServiceNow develops enterprise workflow automation and AI-powered business software.

Aurora Innovation (AUR) closed the week at $6.06 and currently shows a 55.38% gain. Wall Street maintains a Moderate Buy rating, while Frankie continues assigning ⭐⭐⭐⭐ Buy. Aurora's autonomous trucking technology offers significant long-term upside as commercial transportation becomes increasingly automated. Aurora develops self-driving technology focused on commercial freight transportation.

Meta Platforms (META) closed Friday at $646.01 and currently shows a 11.79% gain. Wall Street continues assigning a Strong Buy rating, while Frankie rates the stock ⭐⭐⭐⭐⭐ Strong Buy. Meta continues investing aggressively in artificial intelligence while producing exceptional free cash flow across its family of social media platforms. Meta operates Facebook, Instagram, WhatsApp, Threads, and digital advertising platforms.

Microsoft (MSFT) finished the week at $393.82 and currently shows a 127% gain. Wall Street maintains a Strong Buy rating, while Frankie continues assigning ⭐⭐⭐⭐⭐ Strong Buy. Microsoft's leadership in cloud computing, cybersecurity, enterprise software, and artificial intelligence makes it one of the highest-quality technology companies in the world. Microsoft develops software, cloud computing platforms, artificial intelligence solutions, and business productivity applications.

Frankie's portfolio continues to emphasize artificial intelligence, semiconductors, cloud computing, and digital infrastructure while maintaining exposure to high-quality blue-chip companies. It is an impressive portfolio for an investor just beginning his college career and reflects a disciplined, long-term approach to wealth creation.

As we close another week, I'm reminded that successful investing isn't about predicting what the market will do tomorrow—it's about consistently making good decisions over many years. Headlines will change. Interest rates will rise and fall. Political events will come and go. Markets will experience corrections, rallies, and periods of uncertainty.

What rarely changes is the value of owning exceptional businesses.

Our family continues to invest in companies that we believe have strong balance sheets, outstanding management teams, durable competitive advantages, and long runways for growth. Whether it's artificial intelligence, cloud computing, power infrastructure, healthcare, consumer staples, or real estate, we remain focused on building wealth patiently through disciplined investing rather than reacting emotionally to short-term market volatility.

The same philosophy applies to real estate. Great properties purchased at reasonable prices, financed conservatively, and managed well have created financial independence for countless families over generations. Combined with thoughtful tax planning and a commitment to continuous learning, real estate remains one of the most powerful wealth-building tools available.

Thank you for spending part of your weekend with our family. We sincerely appreciate your continued readership and support. We hope our experiences, successes, and occasional mistakes help you become an even more confident and successful investor.

Have a wonderful week, and as always, invest wisely, stay patient, and keep your eyes focused on the long term.

The information contained in the Smart Wealth Newsletter is provided solely for educational and informational purposes and should not be considered personalized investment, financial, tax, legal, or accounting advice. The opinions expressed are those of Chris McLaughlin and his family as of the publication date and are subject to change without notice.

Investing in stocks, real estate, and other financial assets involves risk, including the possible loss of principal. Past performance does not guarantee future results, and no representation is made that any investment discussed will achieve results similar to those presented. Readers should perform their own due diligence and consult with qualified financial, tax, and legal professionals before making any investment decisions.

Any stock ratings, price targets, or investment opinions expressed in this newsletter reflect our personal views and should not be interpreted as recommendations to buy or sell any security. Every investor's financial situation, objectives, and risk tolerance are unique.

We appreciate your readership and wish you continued success on your journey toward building long-term wealth.