Welcome to another edition of the Smart Wealth Newsletter, where my sons, Trip and Frankie, and I share our thoughts on the economy, the financial markets, investing, and building long-term wealth. Trip is a junior studying finance at the Freeman School of Business at Tulane University, while Frankie, a National Merit Scholarship Finalist, will begin his studies this fall at Georgetown University's McDonough School of Business. Together we believe that investing is a lifelong journey, and every week provides new lessons that can help all of us become better investors.

The final trading day of July provided investors with another reminder that stock markets rarely move in straight lines. Despite significant volatility throughout the week, the major indexes finished Friday with impressive gains as investors digested another busy week of earnings reports, Federal Reserve commentary, economic data, and geopolitical developments. By the closing bell on Friday, July 31, the Dow Jones Industrial Average finished at 52,485.03, up 0.5% for the day, while the S&P 500 gained 0.7% to close at 7,489.72. The technology-heavy Nasdaq Composite climbed 1.0% to 25,373.85, capping a remarkable recovery from the sharp swings experienced earlier in the week.

Although the indexes ended the week higher, investors experienced tremendous sector rotation underneath the surface. The market has become increasingly selective. Companies producing exceptional earnings are being rewarded with explosive rallies, while firms that disappoint Wall Street's lofty expectations are being punished immediately. In today's market, "good" results often aren't enough. Investors want accelerating revenue, expanding profit margins, and clear evidence that artificial intelligence investments are producing meaningful returns.

No company demonstrated that reality better this week than Microsoft.

Just one week ago, we highlighted Microsoft in this newsletter as one of the premier long-term values among the mega-cap technology companies. At the time, our thesis was simple. While many investors had become distracted by short-term concerns surrounding AI spending, Microsoft continued to quietly dominate cloud computing, enterprise software, cybersecurity, and artificial intelligence infrastructure.

This week the company proved that thesis correct.

Microsoft delivered another outstanding earnings report, highlighted by exceptional Azure cloud growth and continued demand for AI services. Investors responded enthusiastically, sending shares sharply higher in one of the company's strongest post-earnings rallies in years. It serves as another reminder that the market eventually rewards outstanding businesses that consistently execute. Rather than chasing speculative stories, we continue to believe that owning dominant companies with exceptional management teams remains one of the safest paths to long-term wealth creation.

Unfortunately, the story was very different for Apple.

While Apple's quarterly results were respectable by almost any historical standard, Wall Street focused instead on management's cautious forward guidance. Investors remain concerned that iPhone demand may soften while uncertainty surrounding next-generation AI devices continues. At the same time, questions surrounding the availability and cost of advanced memory chips necessary for AI-enabled devices weighed on sentiment. Apple suffered one of its largest single-day declines in years, illustrating just how unforgiving today's market has become when expectations aren't exceeded.

That doesn't mean Apple is no longer a wonderful company.

Far from it.

Apple remains one of the greatest businesses ever created with an incredibly loyal customer base, world-class balance sheet, and unmatched ecosystem. However, valuation always matters. Even exceptional companies periodically experience corrections when investor expectations become too optimistic.

If Microsoft was one winner this week, Amazon was unquestionably another.

Amazon reported outstanding earnings that exceeded Wall Street's expectations across multiple business segments. AWS cloud computing continued its impressive growth trajectory, advertising revenues remained exceptionally strong, and management demonstrated that billions of dollars invested into artificial intelligence are beginning to generate meaningful returns. Investors rewarded the company with one of its largest one-day advances in years, helping lift both the Nasdaq and the S&P 500 higher. Amazon's report reinforced our long-held belief that the company remains one of the premier long-term investments in the world because it continues to innovate while simultaneously improving profitability.

Interest rates remained another major focus throughout the week.

Federal Reserve Chairman Kevin Warsh continues to walk a difficult tightrope. Inflation has moderated considerably from its peak, yet energy prices and labor market strength continue to present challenges. The Federal Reserve elected to leave interest rates unchanged during its latest meeting, signaling that policymakers remain cautious before beginning an aggressive easing cycle.

Many investors continue asking the same question: When will rates finally come down?

The honest answer is that no one knows.

If inflation continues trending lower while economic growth gradually slows, modest rate cuts could certainly occur over the next several meetings. However, if energy prices remain elevated or inflation proves more stubborn than anticipated, the Federal Reserve may choose patience over speed. Investors hoping for a rapid return to near-zero interest rates are likely to be disappointed. Those conditions were extraordinary and are unlikely to return anytime soon.

Higher Treasury yields also continue influencing virtually every asset class.

Mortgage rates remain elevated, making home affordability more challenging. Growth stocks experience greater valuation pressure when interest rates rise because future earnings become less valuable when discounted at higher rates. On the other hand, financial institutions often benefit from higher rates, while disciplined value investors can take advantage of temporary weakness in quality businesses.

Geopolitical developments also remained in focus.

While tensions involving Iran appear to have eased somewhat compared to recent weeks, the possibility of achieving lasting peace remains uncertain. Financial markets have repeatedly demonstrated that energy prices respond almost immediately to developments in the Middle East. A durable diplomatic agreement would likely reduce geopolitical risk premiums embedded in crude oil prices, easing inflationary pressures around the globe. Lower energy costs would benefit consumers, businesses, and central banks alike.

Whether such lasting peace can ultimately be achieved remains one of the biggest unanswered questions facing global markets.

History reminds us that diplomacy often progresses slowly and unevenly. Investors should avoid making portfolio decisions based solely upon geopolitical headlines. Instead, maintaining diversified portfolios composed of financially strong companies has historically produced superior long-term outcomes regardless of short-term political uncertainty.

Perhaps the biggest lesson from this week is that fundamentals still matter.

Companies delivering accelerating earnings growth are being rewarded. Businesses failing to meet elevated expectations are being punished. Strong balance sheets, consistent free cash flow, disciplined management teams, and durable competitive advantages remain the characteristics that create wealth over decades—not days.

As investors, we cannot control interest rates, geopolitics, inflation, or quarterly market swings.

We can control our savings rate, our diversification, our patience, and our willingness to own outstanding businesses through both bull and bear markets.

The final week of July reinforced exactly why long-term investing continues to work. Markets will always experience periods of uncertainty, but innovation continues, businesses continue growing, and disciplined investors continue benefiting from the power of compounding. Rather than reacting emotionally to every headline, successful investors stay focused on the next five to ten years—not the next five to ten trading days.

That mindset has helped create wealth for generations, and I believe it will continue to do so for many years ahead.

If you've been reading the Smart Wealth Newsletter for any length of time, you've probably noticed one recurring theme: time is the single greatest investment you can own. Whether you're investing in stocks, mutual funds, or rental real estate, the investors who consistently build lasting wealth are rarely the ones chasing the next hot trend. Instead, they're the ones who patiently allow compounding to work over many years.

I've invested in real estate for decades, and while every property is different, I've learned one lesson that has never changed:

The longer you own quality real estate, the richer you generally become.

That statement may sound overly simple, but it has been proven repeatedly through economic cycles, recessions, housing crashes, and periods of high interest rates. Markets rise and fall, but time has historically rewarded patient real estate investors.

Many new investors spend too much time worrying about buying at the absolute perfect price. They analyze every comparable sale, debate whether interest rates will fall another quarter point, or wait for a housing correction that may never arrive. While they're waiting, experienced investors are collecting rent, paying down mortgages, building equity, and benefiting from appreciation.

The truth is that time in the market almost always beats timing the market.

Consider a rental property purchased today with a 30-year fixed-rate mortgage. During the first few years, it may feel like progress is slow. The monthly payment includes a significant amount of interest, and the principal balance declines gradually. Some investors become discouraged because they don't immediately see large gains.

What they fail to recognize is that wealth is quietly being built in multiple ways at the same time.

First, your tenants are paying down your mortgage every single month. Even if you never make an extra principal payment, someone else is reducing your debt while you continue to own the asset.

Second, the property itself generally appreciates over long periods. Appreciation is never guaranteed in any individual year, but over decades, residential real estate has historically increased in value as inflation, population growth, and replacement costs move higher.

Third, rental income tends to increase over time. A property that rents for $2,000 per month today may rent for considerably more ten years from now. Meanwhile, if you have a fixed-rate mortgage, your principal and interest payment remains largely unchanged. As rents rise and your largest expense stays fixed, your cash flow often improves dramatically.

That combination is extraordinarily powerful.

Imagine buying a rental home today. At first, the cash flow may only be modest after paying the mortgage, taxes, insurance, maintenance, and reserves. Five years later, rents have increased. Ten years later, you've paid down a meaningful portion of the loan while the property has appreciated. Fifteen years later, your mortgage payment feels relatively small because inflation has increased rents and property values across the market.

Eventually, you own an asset producing income that someone else helped pay for.

That's how real estate creates generational wealth.

One of the biggest mistakes I see new investors make is focusing entirely on short-term appreciation. They hope to buy today and sell six months later for a quick profit. While fix-and-flip investing can certainly work, it also involves significantly more risk. Renovation costs can increase unexpectedly, financing expenses accumulate quickly, and market conditions can change before the property is sold.

Buy-and-hold investing removes much of that uncertainty.

Instead of hoping another buyer pays more next month, you're purchasing an income-producing asset designed to perform over many years. Temporary market fluctuations become far less important because your primary objective is long-term wealth creation rather than short-term speculation.

Another tremendous advantage of buy-and-hold investing is leverage.

Real estate allows investors to control valuable assets with relatively modest down payments. As long as debt is managed responsibly, leverage can significantly increase long-term returns. Appreciation occurs on the value of the entire property, not just the amount of cash you initially invested.

Of course, leverage should always be used wisely.

Buying too many properties too quickly or depending upon unrealistic rent projections can create financial stress during economic downturns. Successful investors maintain adequate reserves, purchase quality properties in desirable locations, and avoid taking unnecessary risks simply to acquire additional units.

Patience also helps reduce taxes.

Many investors hold properties long enough to benefit from depreciation, deductible expenses, mortgage interest deductions, and, when appropriate, tax-deferred 1031 exchanges. These tax advantages allow investors to keep more of their investment returns working for them rather than sending those dollars to the IRS.

Perhaps the greatest benefit of long-term ownership is emotional.

Real estate markets will always experience periods of fear. Interest rates rise. Headlines predict housing crashes. Economic recessions create uncertainty. Investors who focus only on today's headlines often panic at exactly the wrong time.

Long-term investors understand something different.

They recognize that people will always need places to live.

Families continue growing. Communities continue expanding. Businesses continue hiring. Population growth continues creating housing demand. These long-term fundamentals matter far more than temporary market volatility.

When I evaluate a rental property today, I'm rarely thinking about where it will be worth next year.

I'm asking myself a much more important question:

Where will this property likely be worth fifteen or twenty years from now while someone else has been paying down my mortgage every month?

That's the mindset that changes everything.

Real estate is not designed to make you wealthy overnight. Instead, it's designed to make you steadily wealthier every single year through appreciation, mortgage amortization, increasing rental income, tax advantages, and the incredible power of compounding.

Many of the wealthiest real estate investors didn't become successful because they constantly bought and sold properties. They became successful because they accumulated quality assets and simply refused to sell them.

Time became their greatest business partner.

As Warren Buffett often reminds investors, wealth is frequently transferred from the impatient to the patient. That principle applies just as strongly to real estate as it does to stocks.

If you're just beginning your real estate journey, don't become discouraged if your first property doesn't immediately transform your financial future. Focus instead on buying wisely, managing the property professionally, maintaining sufficient reserves, and allowing time to do the heavy lifting.

One property becomes two.

Two become five.

Five become ten.

Each mortgage balance gradually declines. Each rent increase improves cash flow. Each year of appreciation builds additional equity. Before long, your portfolio begins generating wealth almost automatically.

The investors who consistently achieve financial independence aren't necessarily the smartest people in the room.

They're often simply the most patient.

In both real estate and investing, patience isn't just a virtue.

It's one of the most valuable assets you'll ever own.

Chris continues to focus his largest investment portfolio on high-quality, industry-leading companies with durable competitive advantages. Rather than chasing speculative trends, his strategy emphasizes businesses with exceptional management teams, strong free cash flow, growing earnings, and the ability to compound shareholder wealth over many years. While short-term volatility is inevitable, these are companies Chris believes are well-positioned to continue outperforming over the long run.

Alphabet Inc. (GOOG)

July 31 Closing Price: $356.65
Overall Gain: +107.52%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

Alphabet remains one of Chris's highest-conviction long-term investments because of its unmatched dominance in internet search, digital advertising, artificial intelligence, YouTube, Android, and Google Cloud. The company's AI initiatives are accelerating across virtually every business segment, while its fortress balance sheet and tremendous free cash flow provide flexibility for continued innovation and shareholder value creation.

Company Description: Alphabet is the parent company of Google and one of the world's largest technology companies, providing search, cloud computing, digital advertising, artificial intelligence, and consumer technology services.

July 31 Closing Price: $271.58
Overall Gain: +30.56%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

Amazon once again demonstrated why it remains one of the world's premier long-term investments after reporting another outstanding quarter driven by AWS cloud computing, advertising, logistics, and artificial intelligence. Chris believes Amazon is still in the early innings of expanding operating margins while continuing to dominate e-commerce and cloud infrastructure around the globe.

Company Description: Amazon is the global leader in e-commerce, cloud computing, digital advertising, logistics, and artificial intelligence infrastructure.

July 31 Closing Price: $308.91
Overall Gain: +105.85%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Although Apple declined following earnings this week, Chris continues to believe the company possesses one of the strongest ecosystems ever created. With hundreds of millions of loyal customers, enormous recurring revenue, and continued innovation in hardware, software, and services, Apple remains a cornerstone holding despite periodic market volatility.

Company Description: Apple designs consumer electronics, software, digital services, and one of the world's most valuable technology ecosystems.

July 31 Closing Price: $951.89
Overall Gain: +101.06%
Average Wall Street Rating: Buy
Chris's Rating: Strong Buy

Costco continues proving that disciplined management, recurring membership income, and exceptional customer loyalty can create enormous shareholder value. Chris appreciates Costco's conservative business model, pricing power, and ability to steadily grow earnings through virtually every economic environment.

Company Description: Costco operates membership warehouse clubs worldwide offering discounted merchandise and industry-leading customer loyalty.

July 31 Closing Price: $592.67
Overall Gain: +68.77%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Deere remains a long-term beneficiary of precision agriculture, automation, GPS technology, and global food demand. Chris believes technological innovation within farming equipment will continue driving higher productivity while supporting Deere's long-term earnings growth.

Company Description: Deere manufactures agricultural, construction, forestry, and precision farming equipment sold worldwide.

July 31 Closing Price: $360.07
Overall Gain: +262.81%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

GE Aerospace continues benefiting from robust commercial aviation demand, record aircraft engine backlogs, expanding defense spending, and long-term service contracts that generate predictable cash flow. Chris believes the company's focused business model following its corporate restructuring has positioned GE Aerospace for many more years of above-average earnings growth.

Company Description: GE Aerospace is a global leader in aircraft engines, aviation systems, military propulsion, and aerospace services.

July 31 Closing Price: $990.29
Overall Gain: +864.77%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

GE Vernova has become one of the greatest investments Chris has ever made. The company's leadership in power generation, electrical grid modernization, natural gas turbines, renewable energy, and global electrification continues to produce exceptional earnings growth as electricity demand accelerates worldwide due to AI data centers, industrial expansion, and infrastructure investment.

Chris believes we are still in the early stages of a multi-year global power investment cycle. While the stock has produced extraordinary gains, he continues to believe GE Vernova possesses one of the strongest long-term growth stories anywhere in the industrial sector.

Company Description: GE Vernova provides power generation equipment, grid technologies, renewable energy solutions, and electrification infrastructure serving utilities and industrial customers worldwide.

July 31 Closing Price: $57.74
Overall Gain: +17.48%
Average Wall Street Rating: Hold
Chris's Rating: Hold

Kroger provides an element of stability within Chris's portfolio by offering consistent cash flow, reliable dividends, and defensive characteristics during periods of market uncertainty. While the company's long-term growth rate is modest compared to many technology holdings, its grocery business generates dependable earnings regardless of economic conditions.

Company Description: Kroger is one of America's largest grocery retailers, operating supermarkets, pharmacies, fuel centers, and digital grocery delivery services.

July 31 Closing Price: $187.56
Overall Gain: -31.59%
Average Wall Street Rating: Strong Buy
Chris's Rating: Buy

Although Marvell remains one of Chris's few unrealized losses, he continues to believe the long-term investment thesis remains intact. Marvell is positioned to benefit from the explosive growth of artificial intelligence networking, custom silicon, cloud infrastructure, and high-speed data center connectivity, making patience an important part of this investment.

Company Description: Marvell Technology develops semiconductor solutions for cloud computing, artificial intelligence, networking, storage, and telecommunications.

July 31 Closing Price: $556.71
Overall Gain: -3.97%
Average Wall Street Rating: Strong Buy
Chris's Rating: Buy

Meta continues investing aggressively in artificial intelligence while generating enormous cash flow from Facebook, Instagram, WhatsApp, and digital advertising. Chris believes CEO Mark Zuckerberg is building one of the world's strongest AI ecosystems, and today's investments should continue producing substantial shareholder value over the coming decade.

Company Description: Meta Platforms owns Facebook, Instagram, WhatsApp, Threads, and one of the world's largest digital advertising businesses.

July 31 Closing Price: $823.03
Overall Gain: -31.21%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

Micron has experienced meaningful volatility, but Chris believes the long-term opportunity remains exceptionally attractive. Demand for high-bandwidth memory and advanced DRAM used in artificial intelligence servers continues accelerating, positioning Micron to benefit from one of the strongest semiconductor cycles in decades once supply and pricing normalize.

Company Description: Micron Technology manufactures advanced memory and storage semiconductors used in AI, cloud computing, mobile devices, and enterprise data centers.

July 31 Closing Price: $464.72
Overall Gain: +917.18%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

Microsoft remains Chris's single best-performing long-term investment and perfectly demonstrates the power of patient investing. Last week's newsletter highlighted Microsoft as one of the most attractive values among the mega-cap technology companies, and this week's outstanding earnings report validated that conviction as investors rewarded the company for exceptional Azure cloud growth, AI leadership, and expanding profitability.

Chris believes Microsoft is uniquely positioned at the center of the artificial intelligence revolution through Azure, Microsoft 365 Copilot, GitHub, enterprise software, and OpenAI partnerships. Even after an extraordinary long-term gain, he believes Microsoft's competitive advantages and recurring revenue model justify continued ownership for many years.

Company Description: Microsoft is a global technology leader providing cloud computing, enterprise software, artificial intelligence, cybersecurity, gaming, and productivity solutions.

July 31 Closing Price: $144.49
Overall Gain: +76.34%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Procter & Gamble provides an excellent balance to Chris's technology-heavy portfolio by offering dependable earnings, growing dividends, and resilient consumer demand through every economic cycle. Its portfolio of household brands continues generating consistent cash flow while providing defensive characteristics during periods of market volatility.

Company Description: Procter & Gamble is one of the world's largest consumer products companies, manufacturing trusted household, personal care, health, and beauty brands sold globally.

Chris's Morgan Stanley portfolio continues to reflect a disciplined, long-term investment philosophy centered on owning exceptional businesses rather than attempting to trade short-term market swings. The portfolio has meaningful exposure to artificial intelligence, cloud computing, aerospace, power generation, consumer staples, and global infrastructure, while also maintaining diversification across multiple sectors of the economy.

The standout performers continue to be Microsoft (+917.18%) and GE Vernova (+864.77%), two investments that demonstrate how identifying transformational businesses early—and then having the patience to hold them—can create extraordinary long-term wealth. At the same time, positions such as Marvell, Micron, and Meta serve as reminders that temporary setbacks are a normal part of investing. Chris believes that maintaining conviction in high-quality companies during periods of volatility is often what separates successful long-term investors from those who chase short-term market sentiment.

Chris uses his Fidelity accounts to complement his Morgan Stanley portfolio with a combination of blue-chip dividend growers, industry-leading technology companies, financial services leaders, and select long-term growth opportunities. While each account serves a different purpose, the overall strategy remains the same: own outstanding businesses, allow earnings to compound over time, reinvest when appropriate, and remain patient through market cycles.

July 31 Closing Price: $271.58
Overall Gain: +139.05%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

Amazon continues to be one of Chris's highest-conviction holdings because of its leadership in cloud computing, e-commerce, logistics, advertising, and artificial intelligence. The company's outstanding earnings report this week reinforced Chris's belief that Amazon remains one of the premier long-term growth companies in the world.

Company Description: Amazon is a global leader in e-commerce, cloud computing, digital advertising, and AI infrastructure.

July 31 Closing Price: $336.25
Overall Gain: +101.73%
Average Wall Street Rating: Buy
Chris's Rating: Buy

American Express has consistently rewarded shareholders through disciplined lending, premium customers, and exceptional brand loyalty. Chris believes its affluent customer base and expanding global payments business should continue producing above-average earnings growth.

Company Description: American Express is a global financial services company specializing in credit cards, payments, and travel-related financial products.

July 31 Closing Price: $31.88
Overall Gain: +113.78%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Kinder Morgan provides dependable cash flow through its vast energy pipeline network, making it an excellent income-producing investment. Chris likes the company's attractive dividend, stable infrastructure assets, and continued importance in transporting natural gas across North America.

Company Description: Kinder Morgan owns one of North America's largest energy pipeline and storage networks.

July 31 Closing Price: $46.81
Overall Gain: -7.20%
Average Wall Street Rating: Hold
Chris's Rating: Hold

Although Verizon has underperformed recently, Chris continues to appreciate the company's dependable dividend and recurring subscription revenue. While wireless competition remains intense, Verizon continues generating strong free cash flow and remains an important defensive holding.

Company Description: Verizon provides wireless communications, broadband internet, and telecommunications services throughout the United States.

July 31 Closing Price: $155.44
Overall Gain: +85.25%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Exxon Mobil continues benefiting from disciplined capital allocation and one of the strongest balance sheets in the global energy industry. Chris believes energy will remain an essential component of the world economy for decades, even as renewable energy expands.

Company Description: Exxon Mobil is one of the world's largest integrated energy companies engaged in oil, natural gas, refining, and chemicals.

July 31 Closing Price: $311.21
Overall Gain: -2.14%
Average Wall Street Rating: Hold
Chris's Rating: Buy

Tesla remains one of the most innovative companies in the world despite recent volatility. Chris believes the company's long-term opportunities in autonomous driving, robotics, artificial intelligence, and energy storage continue to justify maintaining the position.

Company Description: Tesla designs electric vehicles, battery storage systems, robotics, autonomous driving software, and clean energy technologies.

July 31 Closing Price: $308.91
Overall Gain: +176.69%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Apple remains one of the world's highest-quality businesses despite recent market concerns following earnings. Chris believes the company's loyal customer base, recurring services revenue, and enormous cash generation continue to make it an outstanding long-term investment.

Company Description: Apple develops consumer electronics, software, services, and one of the world's strongest technology ecosystems.

July 31 Closing Price: $200.75
Overall Gain: +103.33%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

NVIDIA remains the unquestioned leader in artificial intelligence computing, with demand for its GPUs continuing to outpace supply across cloud providers and enterprise customers. Chris believes AI infrastructure spending remains in its early stages, giving NVIDIA an excellent long-term runway.

Company Description: NVIDIA develops advanced graphics processors and AI computing platforms used in data centers, gaming, robotics, and autonomous systems.

July 31 Closing Price: $108.37
Overall Gain: -19.73%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Although Space Exploration Technologies has experienced short-term weakness, Chris believes commercial space remains one of the fastest-growing industries over the coming decade. Continued satellite deployment, launch services, and space infrastructure should provide meaningful long-term growth opportunities.

Company Description: Space Exploration Technologies focuses on commercial space infrastructure and companies benefiting from the expanding space economy.

July 31 Closing Price: $308.91
Overall Gain: -1.92%
Average Wall Street Rating: Buy
Chris's Rating: Buy

This newer Apple position reflects Chris's continued confidence in one of the world's premier technology companies. He believes temporary market weakness often creates opportunities to accumulate exceptional businesses at more attractive valuations.

Company Description: Apple is a global leader in consumer technology, software, and digital services.

July 31 Closing Price: $951.89
Overall Gain: -5.86%
Average Wall Street Rating: Buy
Chris's Rating: Strong Buy

Costco's membership model continues producing remarkably consistent earnings and industry-leading customer loyalty. Chris views recent weakness as temporary and remains extremely bullish on the company's long-term prospects.

Company Description: Costco operates membership warehouse clubs serving millions of customers worldwide.

July 31 Closing Price: $115.99
Overall Gain: +13.83%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Cisco continues evolving beyond traditional networking into cybersecurity, cloud infrastructure, and AI-enabled networking solutions. Chris appreciates its dependable dividend, strong balance sheet, and growing software revenue.

Company Description: Cisco develops networking equipment, cybersecurity solutions, and enterprise communications technology.

July 31 Closing Price: $360.07
Overall Gain: +12.57%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

GE Aerospace continues benefiting from robust commercial aviation demand and long-term aircraft engine service contracts. Chris believes its focused aerospace business is well-positioned for continued earnings growth.

Company Description: GE Aerospace manufactures aircraft engines and aerospace systems for commercial and military aviation.

July 31 Closing Price: $87.59
Overall Gain: +13.25%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Coca-Cola remains one of the world's most dependable dividend-growth companies with unmatched global brand recognition. Chris values the stability and defensive characteristics it brings to a diversified retirement portfolio.

Company Description: Coca-Cola is a global beverage company with an extensive portfolio of soft drinks, water, sports drinks, juices, and coffee products.

July 31 Closing Price: $293.02
Overall Gain: +13.79%
Average Wall Street Rating: Strong Buy
Chris's Rating: Strong Buy

Lam Research is a critical supplier of semiconductor manufacturing equipment, making it an indirect beneficiary of the AI boom. Chris believes rising demand for advanced chips will continue driving long-term equipment spending.

Company Description: Lam Research manufactures semiconductor fabrication equipment used by leading chipmakers worldwide.

July 31 Closing Price: $573.10
Overall Gain: +6.28%
Average Wall Street Rating: Strong Buy
Chris's Rating: Buy

Mastercard continues benefiting from the worldwide transition toward electronic payments. Chris believes international payment growth, cross-border transactions, and digital commerce should support years of consistent earnings expansion.

Company Description: Mastercard operates one of the world's largest electronic payment processing networks.

July 31 Closing Price: $130.20
Overall Gain: +7.57%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Merck offers attractive exposure to pharmaceuticals while providing diversification outside of technology. Chris believes its strong drug pipeline and global healthcare presence should continue supporting long-term shareholder returns.

Company Description: Merck develops prescription medicines, vaccines, biologic therapies, and animal health products.

July 31 Closing Price: $144.49
Overall Gain: -3.72%
Average Wall Street Rating: Buy
Chris's Rating: Buy

Procter & Gamble continues generating dependable earnings through a portfolio of trusted household brands. Chris appreciates the stability and dividend growth the company contributes to a retirement account.

Company Description: Procter & Gamble manufactures consumer household and personal care products sold worldwide.

July 31 Closing Price: $123.06
Overall Gain: -14.52%
Average Wall Street Rating: Buy
Chris's Rating: Strong Buy

Despite recent volatility, Chris remains highly optimistic about Palantir's future as artificial intelligence adoption accelerates across government and commercial markets. He believes the company's software platform has the potential to become increasingly indispensable for organizations requiring advanced data analytics and AI-driven decision making.

Company Description: Palantir develops artificial intelligence and data analytics software for government agencies and commercial enterprises.

July 31 Closing Price: $366.13
Overall Gain: +9.50%
Average Wall Street Rating: Strong Buy
Chris's Rating: Buy

Visa continues to benefit from the global shift toward electronic payments, with exceptional margins and a highly scalable business model. Chris believes Visa remains one of the highest-quality financial companies in the world and expects steady long-term growth as digital commerce expands.

Company Description: Visa operates the world's largest electronic payments network, processing billions of transactions annually.

One of the most rewarding parts of writing this newsletter each week is watching Trip and Frankie continue to develop as long-term investors. While each portfolio reflects different investment ideas and risk tolerances, both portfolios emphasize owning innovative companies with significant long-term growth potential rather than attempting to trade short-term market movements. Like all investors, they've experienced both winners and losers, but the discipline of studying businesses, remaining patient, and learning from every investment continues to strengthen their investment knowledge.

July 31 Closing Price: $990.29
Overall Gain: +883.44%
Average Wall Street Rating: Strong Buy
Trip's Rating: Strong Buy

GE Vernova continues to be the cornerstone of Trip's portfolio and one of the most successful investments our family has ever made. Trip believes the worldwide demand for electricity, AI data centers, power generation equipment, and electrical grid modernization is still in its early stages, giving GE Vernova a long runway for continued earnings growth.

Company Description: GE Vernova is a global leader in power generation, grid infrastructure, renewable energy, and electrification technologies.

July 31 Closing Price: $951.89
Overall Gain: +106.52%
Average Wall Street Rating: Buy
Trip's Rating: Strong Buy

Costco continues proving that outstanding management and a simple business model can create tremendous shareholder wealth. Trip appreciates the company's consistent earnings growth, loyal membership base, and ability to perform well regardless of broader economic conditions.

Company Description: Costco operates membership warehouse clubs serving consumers worldwide.

July 31 Closing Price: $90.20
Overall Gain: -29.45%
Average Wall Street Rating: Hold
Trip's Rating: Hold

Intel has been a challenging investment, but Trip believes the company's turnaround efforts deserve additional time. Manufacturing improvements, foundry expansion, and increasing semiconductor demand could eventually create meaningful upside if management successfully executes its long-term strategy.

Company Description: Intel develops semiconductor processors, foundry services, and computing technologies for personal computers, servers, and AI applications.

July 31 Closing Price: $823.03
Overall Gain: -4.65%
Average Wall Street Rating: Strong Buy
Trip's Rating: Strong Buy

Although Micron has experienced recent volatility, Trip remains optimistic about the long-term outlook for advanced memory used in artificial intelligence servers and cloud computing. As AI adoption continues accelerating, he believes Micron is well-positioned to benefit from growing demand for high-performance memory.

Company Description: Micron manufactures advanced memory and storage semiconductors serving AI, cloud computing, and enterprise data centers.

As Frankie prepares to begin his freshman year at Georgetown University's McDonough School of Business, his investment portfolio continues reflecting a thoughtful balance of artificial intelligence, semiconductors, software, autonomous driving, and long-term technology leaders. While he's willing to accept more volatility than many investors, his focus remains on businesses with significant long-term growth opportunities.

July 31 Closing Price: $10.86
Overall Gain: +45.97%
Average Wall Street Rating: Buy
Frankie's Rating: Buy

Navitas continues developing next-generation gallium nitride and silicon carbide power semiconductors that improve efficiency across electric vehicles, AI data centers, consumer electronics, and industrial applications. Frankie believes demand for more efficient power management solutions will continue expanding as artificial intelligence infrastructure grows.

Company Description: Navitas Semiconductor develops advanced power semiconductor technologies for high-efficiency electronic systems.

July 31 Closing Price: $990.29
Overall Gain: +883.44%
Average Wall Street Rating: Strong Buy
Frankie's Rating: Strong Buy

Like his father and brother, Frankie continues viewing GE Vernova as one of the strongest long-term industrial growth companies available. Rising global electricity demand and infrastructure investment remain powerful long-term tailwinds supporting the business.

Company Description: GE Vernova provides power generation equipment and grid modernization technologies worldwide.

July 31 Closing Price: $951.89
Overall Gain: +106.15%
Average Wall Street Rating: Buy
Frankie's Rating: Strong Buy

Costco's consistent execution and recession-resistant business model make it an excellent foundation for any long-term portfolio. Frankie appreciates management's disciplined approach to growth and shareholder value creation.

Company Description: Costco operates membership warehouse clubs with industry-leading customer loyalty.

July 31 Closing Price: $190.41
Overall Gain: +124.62%
Average Wall Street Rating: Buy
Frankie's Rating: Strong Buy

Nebius has become one of Frankie's strongest performers as demand for AI infrastructure and cloud computing continues expanding. He believes the company remains well-positioned to benefit from continued investment in artificial intelligence computing capacity.

Company Description: Nebius Group develops AI cloud infrastructure and high-performance computing services.

July 31 Closing Price: $311.21
Overall Gain: +4.65%
Average Wall Street Rating: Hold
Frankie's Rating: Buy

Tesla remains one of the world's most innovative companies despite periodic stock volatility. Frankie believes the company's future extends well beyond electric vehicles into robotics, autonomous driving, energy storage, and artificial intelligence.

Company Description: Tesla develops electric vehicles, autonomous driving technology, robotics, and clean energy solutions.

July 31 Closing Price: $111.23
Overall Gain: +22.08%
Average Wall Street Rating: Strong Buy
Frankie's Rating: Strong Buy

ServiceNow has performed exactly as Frankie hoped since initiating the position earlier this summer. The company continues benefiting from strong enterprise demand for workflow automation, digital transformation, and artificial intelligence solutions.

Company Description: ServiceNow develops enterprise workflow automation and AI-powered cloud software.

July 31 Closing Price: $6.45
Overall Gain: +65.38%
Average Wall Street Rating: Buy
Frankie's Rating: Buy

Aurora remains a higher-risk investment, but Frankie believes autonomous trucking represents a significant long-term opportunity. If autonomous freight transportation achieves widespread commercial adoption, Aurora could become a meaningful participant in a rapidly growing market.

Company Description: Aurora Innovation develops autonomous driving technology focused primarily on commercial trucking.

July 31 Closing Price: $556.71
Overall Gain: -3.66%
Average Wall Street Rating: Strong Buy
Frankie's Rating: Buy

Although currently showing a small unrealized loss, Frankie remains confident in Meta's long-term artificial intelligence strategy. The company's enormous user base, advertising leadership, and continued AI investment provide an attractive long-term opportunity.

Company Description: Meta Platforms owns Facebook, Instagram, WhatsApp, Threads, and one of the world's largest digital advertising businesses.

July 31 Closing Price: $464.72
Overall Gain: +168.11%
Average Wall Street Rating: Strong Buy
Frankie's Rating: Strong Buy

Microsoft once again demonstrated why it remains one of the finest companies in the world with another outstanding earnings report this week. Frankie believes Microsoft's leadership in artificial intelligence, Azure cloud computing, enterprise software, and productivity tools should continue driving exceptional shareholder returns for many years.

Company Description: Microsoft develops cloud computing, artificial intelligence, enterprise software, cybersecurity, gaming, and productivity solutions.

As we begin August, one theme continues to stand above all others: great businesses continue to create great long-term returns. While markets will always experience periods of volatility driven by interest rates, earnings reports, geopolitical events, or investor sentiment, companies with outstanding management, durable competitive advantages, and consistent earnings growth have historically rewarded patient shareholders.

Looking across our family portfolios, it's clear that many of our strongest investments—Microsoft, GE Vernova, Alphabet, Amazon, Costco, and NVIDIA—have been owned for years rather than months. Their success wasn't the result of perfect market timing; it came from identifying exceptional businesses, maintaining conviction during periods of uncertainty, and allowing time and compounding to do the heavy lifting.

At the same time, we continue to own several positions currently showing unrealized losses. That's simply part of investing. No investor wins on every position, and some of the best long-term investments often experience meaningful pullbacks before eventually reaching new highs. Our approach is to continually evaluate the underlying business, not just the daily stock price.

As always, thank you for allowing our family to share our investment journey with yours. We hope these updates provide useful ideas, encourage thoughtful discussion, and reinforce the importance of disciplined long-term investing. Whether you're just beginning your investment journey or managing a substantial portfolio, consistency, patience, and continuous learning remain the foundations of lasting financial success.

The Smart Wealth Newsletter is provided solely for educational and informational purposes. The opinions expressed are those of Chris McLaughlin and his family and should not be considered individualized investment, legal, accounting, or tax advice. All investments involve risk, including the possible loss of principal, and past performance does not guarantee future results. Investors should conduct their own due diligence and consult with qualified financial, legal, and tax professionals before making any investment decisions. The securities discussed may be bought, sold, or held by members of our family at any time without further notice.