Welcome to another edition of the Smart Wealth Newsletter, where Chris McLaughlin and his sons, Trip and Frankie, chronicle what they are learning about investing, business, markets, and building wealth over the long term.

Trip is a junior at Tulane University’s Freeman School of Business, while Frankie is beginning an exciting new chapter at Georgetown University’s McDonough School of Business. The goal of this newsletter remains simple: study the markets, own great businesses when valuations make sense, take calculated risks where the potential reward justifies them, and continually learn from both our winners and our mistakes.

This week gave investors plenty to think about. Artificial intelligence once again demonstrated its extraordinary economic power, software stocks came roaring back, the Federal Reserve reminded investors that inflation has not disappeared, and geopolitical developments continued to influence oil prices.

Chris also made a new investment Friday afternoon after watching one small-cap technology stock get hammered by more than 18% in a single session. That company—LightPath Technologies—is this week’s Stock Spotlight.

Wall Street finished the final full trading week of August with another gain, although Friday provided investors with an important reminder that this bull market will not move higher in a straight line.

The Dow Jones Industrial Average closed Friday, August 28, at 53,559.99, the S&P 500 finished at 7,711.76, and the Nasdaq Composite closed at 26,402.42.

For Friday itself, the Dow slipped just 0.02%, the S&P 500 declined 0.25%, and the Nasdaq fell 0.52%. For the full week, however, all three major averages remained positive, with the S&P 500 gaining roughly 0.5%, the Dow approximately 0.5%, and the Nasdaq about 0.9%.

That is an important distinction.

Friday looked somewhat negative on the surface, but the broader week remained constructive. Investors continue to show a willingness to buy quality companies when earnings support the story, even as interest rates, inflation, oil prices, and geopolitical risks remain significant.

The biggest market story remains artificial intelligence.

Every few months investors begin wondering whether the AI investment cycle has gone too far. Then companies report earnings, and the actual numbers remind investors how enormous the spending cycle has become.

Nvidia delivered another remarkable quarter. The company reported quarterly revenue of approximately $96.2 billion, up more than 100% from the previous year, and guided toward approximately $108 billion in revenue for the following quarter.

Nvidia shares surged 8.7% Thursday following the report.

Even more striking was management's longer-term outlook. Nvidia indicated that fiscal 2028 revenue growth could approach 70%, illustrating how rapidly demand for artificial-intelligence infrastructure continues to expand.

Chris continues to believe that AI is not simply another technology cycle. It may ultimately prove comparable to the commercialization of the Internet, cloud computing, smartphones, and perhaps even electricity in terms of its effect on productivity.

The winners will not necessarily be limited to companies developing AI models. The infrastructure surrounding AI may be equally important: semiconductors, memory, networking equipment, data centers, electrical generation, cooling systems, cloud infrastructure, and advanced optical technologies.

That broader ecosystem is one reason our portfolios contain companies such as Nvidia, Micron, Microsoft, Alphabet, Amazon, GE Vernova, Palantir, Lam Research, Marvell, Nebius, and now LightPath Technologies.

One of the most interesting developments this week was the sudden resurgence of software stocks.

For much of 2026, investors worried that generative AI might actually hurt traditional software companies. The fear was straightforward: if AI agents can write software, automate workflows, and replace certain white-collar tasks, perhaps businesses will need fewer conventional software subscriptions.

This week's earnings reports challenged that argument.

Salesforce surged approximately 22.6% Thursday after reporting stronger results and demonstrating that its AI strategy is beginning to translate into meaningful business activity.

Salesforce was not alone.

CrowdStrike jumped sharply following strong results, ServiceNow rallied approximately 10% Thursday, Adobe gained roughly 5.7%, and Elastic surged after better-than-expected earnings.

The message from the market was significant: AI may not destroy established software companies with valuable proprietary data and entrenched customer relationships. Instead, AI could make some of those businesses more valuable.

That distinction matters.

The market spent much of the first half of 2026 separating supposed AI winners from AI losers. We may now be entering a phase in which investors realize that some established software companies can successfully integrate AI into their existing products rather than simply being replaced by it.

Several stocks deserve particular attention because of their recent momentum.

Nvidia remains one of the defining companies of the AI boom. Its 8.7% post-earnings move Thursday reinforced the extraordinary demand for AI computing infrastructure.

Salesforce exploded more than 22% after earnings as investors reconsidered the idea that AI necessarily threatens traditional enterprise software.

CrowdStrike rallied strongly after delivering another impressive quarter, reinforcing the idea that cybersecurity spending remains essential even when corporate budgets tighten.

ServiceNow jumped approximately 10% Thursday as software stocks broadly recovered and investors became more optimistic about AI-enhanced enterprise applications.

Palantir has been one of the strongest large technology stocks during August, with shares rising dramatically during the month. Palantir remains one of the clearest examples of a company converting AI excitement into actual enterprise and government contracts.

Micron Technology has also been a major beneficiary of the AI infrastructure boom. High-bandwidth memory is becoming an increasingly critical component of advanced AI systems, and memory demand remains central to the expansion of next-generation data centers.

Microsoft has continued to benefit from its enormous position in enterprise software, cloud computing, and AI. Azure and Microsoft's relationship with OpenAI have helped position the company at the center of corporate AI adoption.

Other notable performers during the recent period have included SpaceX, Oracle, Dell, Okta, Abercrombie & Fitch, and several cybersecurity and software companies.

The broader lesson is that market leadership continues to rotate underneath the surface. Investors who focus only on the major indexes can miss substantial movements taking place within individual industries.

There were also reminders this week that strong industry trends do not guarantee every stock will rise.

Marvell Technology dropped more than 10% Friday despite reporting results that contained positive elements. Expectations surrounding AI-related semiconductor companies have become extremely high, meaning merely good results sometimes aren't enough.

That is something investors should remember.

When a stock is priced for perfection, even excellent results can lead to a selloff if management's outlook falls slightly short of the market's expectations.

The opposite can also happen.

When expectations become extremely negative, merely decent results can trigger enormous rallies.

That dynamic is increasingly important in today's market.

The most important macroeconomic event Friday came from Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Symposium.

Warsh made clear that the Federal Reserve remains concerned about inflation and is prepared to act if inflation does not move convincingly toward the Fed's 2% target.

His comments were more hawkish than many investors expected.

Following the speech, market expectations for a September interest-rate increase rose sharply, moving from roughly the mid-30% range to the mid-to-upper 50% range.

That change helped push short-term Treasury yields higher and pressured technology stocks Friday.

The message is simple: investors cannot assume that interest-rate cuts are automatically coming.

Inflation remains above the Federal Reserve's target, and Warsh appears determined to establish credibility as an inflation fighter.

Chris believes this is ultimately healthy.

Markets may prefer lower rates, but long-term investors should prefer a Federal Reserve that takes inflation seriously. Persistent inflation destroys purchasing power, raises long-term borrowing costs, and creates instability throughout the economy.

If the Fed can convince investors that inflation will eventually return toward 2%, long-term interest rates could ultimately become more stable even if short-term rates remain elevated temporarily.

The next major test comes Friday with the August employment report.

Economists are expecting approximately 58,000 new nonfarm payroll jobs, with unemployment around 4.1%.

This creates an interesting setup.

A very strong jobs report could increase the probability of another Fed rate increase because the central bank would have more flexibility to fight inflation.

A very weak report could reduce rate-hike expectations but simultaneously raise concerns about economic growth.

The market therefore wants something close to a Goldilocks report: employment growth strong enough to avoid recession fears but not so strong that it intensifies inflation concerns.

Energy remains another major variable.

Brent crude settled Friday around $89.31 per barrel, while West Texas Intermediate finished around $83.40. Both benchmarks declined substantially for the week, with Brent losing more than 5% and WTI falling more than 4%.

The decline came despite continuing tensions involving Iran and the Strait of Hormuz.

Markets reacted positively to signs that more oil was successfully moving out of the Persian Gulf and to speculation surrounding potential arrangements that could improve shipping through the Strait.

This remains one of the world's most important economic stories.

Before the current conflict, roughly one-fifth of global oil supply moved through the Strait of Hormuz. Any sustained disruption can quickly affect crude oil, gasoline, diesel, transportation expenses, inflation expectations, and ultimately Federal Reserve policy.

Chris believes investors should continue watching oil almost as closely as interest rates.

If oil falls, inflation pressure could ease substantially.

If another geopolitical shock sends crude sharply above $100, the Fed's job becomes considerably more difficult.

The Russell 2000 declined approximately 1.5% for the week, even as the major large-cap indexes gained.

That divergence deserves attention.

Smaller companies generally have greater sensitivity to financing costs than mega-cap technology companies. Higher interest rates therefore affect small caps disproportionately.

If inflation begins falling and the Fed eventually gains room to lower rates, small caps could become one of the more interesting areas of the market.

Until then, selectivity remains critical.

Chris remains bullish on the long-term prospects for American businesses, but the market is becoming increasingly selective.

The easy money has already been made in many areas.

Investors should not assume that every company associated with AI deserves an unlimited valuation. Revenue, earnings, cash flow, competitive advantages, management quality, and balance-sheet strength still matter.

At the same time, transformational technological cycles can last far longer than investors initially expect.

The Internet boom created enormous excesses, but it also produced some of the most valuable companies in history. The same may ultimately prove true of artificial intelligence.

The objective is not to avoid every volatile stock. The objective is to distinguish volatility from permanent impairment of capital.

That philosophy leads directly into this week's Stock Spotlight.

This week's Stock Spotlight is a company most investors have probably never heard of: LightPath Technologies, ticker LPTH.

Chris purchased LightPath Friday afternoon after watching the shares fall 18.56% during the session.

LPTH closed Friday at $11.23, down $2.56 from the previous day's close of $13.79. The shares traded as low as $10.93 during the session.

Chris was not trying to call the exact bottom.

Nobody consistently does that.

Instead, he saw a company he already found interesting experience an abrupt selloff and decided the decline created an opportunity to establish a speculative position near what could potentially become a bottom.

That distinction is important.

Trying to buy the absolute lowest tick is usually unrealistic. The objective is to buy a business at a price where the potential long-term reward appears attractive relative to the risk.

LightPath Technologies is an Orlando-based optical technology company specializing in advanced optics and imaging systems.

Its products include precision molded glass optics, infrared lenses, optical assemblies, thermal imaging systems, cooled and uncooled camera systems, and specialized engineering solutions.

These technologies can be used in defense, surveillance, border security, industrial applications, medical equipment, machine vision, telecommunications, and other sophisticated optical systems.

That is exactly why Chris became interested.

LightPath sits at the intersection of several areas that could experience significant long-term investment: defense modernization, autonomous systems, drones, thermal imaging, surveillance, advanced manufacturing, and machine vision.

Optics are easy to overlook because semiconductors receive most of the attention.

But sophisticated electronic systems need more than processors.

Machines must be able to see.

Drones need sensors. Autonomous systems need imaging. Military equipment requires night vision and thermal detection. Industrial systems increasingly rely on machine vision.

LightPath participates in that less glamorous but potentially essential layer of the technology stack.

The defense market is particularly interesting.

Global military spending has increased dramatically as governments respond to conflicts and geopolitical instability.

Modern defense systems increasingly rely on sensors, infrared imaging, drones, autonomous platforms, precision targeting, and surveillance technologies.

LightPath's optical and infrared technologies give the company exposure to this modernization cycle.

That does not guarantee success.

Small defense suppliers face significant risks, including contract timing, customer concentration, production challenges, and intense competition.

But a relatively small company does not need billions of dollars of incremental business to materially change its financial results.

A handful of meaningful contracts can have an enormous impact.

That asymmetry is part of what makes LPTH interesting.

LightPath has been growing rapidly.

Trailing revenue has increased substantially, reflecting acquisitions and expansion into higher-value optical and imaging systems.

The company is still not consistently profitable, however, which is one reason Chris considers the stock speculative.

Investors buying LPTH are not buying a mature blue-chip company like Microsoft or Procter & Gamble.

They are buying a small technology company attempting to scale into larger markets.

That means execution matters enormously.

Revenue growth needs to eventually translate into improved margins, cash generation, and profitability.

If that happens, today's valuation could eventually look attractive.

If it doesn't, the stock can fall significantly.

Friday's 18.56% decline created the entry point.

Chris had already been researching the company and liked its exposure to infrared technology, defense, imaging, and advanced optics.

When the stock suddenly dropped almost 19%, he decided to act.

Again, the strategy was not to predict that $11.23—or Chris's actual purchase price—would represent the exact low.

The idea was to get close to an area where the risk/reward looked significantly more attractive than it had one day earlier.

That is often how Chris approaches volatile growth stocks.

A sharp selloff does not automatically make a stock cheap. Sometimes stocks collapse because the business is permanently deteriorating.

But when a company Chris already likes falls dramatically and the long-term thesis appears largely intact, he becomes interested.

Analyst sentiment toward LightPath remains notably bullish.

A five-analyst consensus currently rates LPTH a Strong Buy, with an average 12-month target around $15.78 and published targets generally ranging from approximately $15 to $17.

Piper Sandler recently initiated coverage with an Overweight rating and a $15 target, while Canaccord has maintained a Buy rating with a $16.50 target.

That does not mean the stock will reach those prices.

Analyst targets are estimates, not guarantees.

But the bullish analyst positioning supports the idea that Chris is not alone in seeing potential value following the decline.

LPTH should not be confused with a low-risk investment.

This is a small-cap technology company with significant volatility.

The company remains unprofitable. Defense contract timing can be unpredictable. A major contract loss or delay could materially affect results. Additional capital requirements could dilute shareholders.

And Friday's decline itself demonstrates just how quickly sentiment can change.

A stock that can decline nearly 19% in one session can certainly decline another 20% or 30%.

That is why position sizing matters.

Chris views LPTH as a speculative growth position rather than a foundational portfolio holding.

Chris rates LightPath Technologies a BUY — SPECULATIVE.

The company offers exposure to defense technology, infrared imaging, optical systems, autonomous platforms, and machine vision—markets that could experience significant long-term growth.

Friday's 18.56% decline created what Chris believes may be an attractive entry point.

He is not claiming to have bought the exact bottom.

He is trying to buy near a potential bottom, where the upside could justify accepting substantial volatility.

For investors willing to tolerate that risk, LPTH is a company worth watching very closely.

Our portfolio philosophy remains focused on long-term ownership of outstanding businesses combined with selected higher-risk opportunities where we believe the potential reward justifies the volatility.

The percentages below represent each position’s gain or loss according to the brokerage information supplied for this week’s newsletter. We have intentionally omitted share quantities, dollar position values, cost-basis dollar amounts, and account numbers.

Average Analyst Rating: Buy | Chris’s Rating: Strong Buy

Alphabet remains one of Chris’s favorite ways to own the combination of digital advertising, cloud computing, YouTube, artificial intelligence, and enormous free cash flow. Google has tremendous data, distribution, computing resources, and AI capabilities, making it one of the businesses Chris believes can remain dominant for many years.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

Amazon combines the world’s dominant e-commerce ecosystem with AWS, one of the most important cloud-computing businesses in the world. Chris believes AWS and AI infrastructure can increasingly drive Amazon’s profits while the retail operation continues becoming more efficient.

Average Analyst Rating: Buy | Chris’s Rating: Hold

Apple remains one of the world’s greatest consumer franchises, with an extraordinary installed base, ecosystem, services operation, and balance sheet. Chris continues owning Apple but believes its current valuation warrants more caution than when the shares were substantially cheaper.

Average Analyst Rating: Buy | Chris’s Rating: Buy

Deere is much more than a tractor manufacturer; it is increasingly a precision-agriculture and automation company. Chris likes Deere’s dominant brand, enormous dealer network, agricultural technology, and long-term opportunity to automate farming.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

GE Aerospace is one of the world’s premier manufacturers and servicers of commercial and military aircraft engines. Chris believes the enormous installed engine base, aviation demand, recurring service revenue, and defense exposure provide an unusually attractive long-term combination.

Average Analyst Rating: Buy | Chris’s Rating: Strong Buy

GE Vernova has become one of Chris’s greatest investments, benefiting from rising electricity demand, grid modernization, natural-gas generation, renewables, and the extraordinary power requirements of AI data centers. Chris believes the electricity infrastructure buildout could remain one of the defining investment themes of the next decade.

Average Analyst Rating: Buy | Chris’s Rating: Buy

Kroger provides defensive exposure to an essential industry while continuing to improve its digital and private-label operations. Chris likes the predictable nature of grocery demand and Kroger’s ability to generate cash through economic cycles.

Average Analyst Rating: Strong Buy | Chris’s Rating: Buy

Marvell develops semiconductors and infrastructure technology used in data centers, networking, storage, and communications. Chris continues to like its exposure to AI infrastructure despite the volatility and the stock’s recent decline.

Average Analyst Rating: Strong Buy | Chris’s Rating: Buy

Meta owns some of the world’s most valuable social platforms, including Facebook, Instagram, and WhatsApp, while aggressively investing in artificial intelligence. Chris believes Meta’s advertising engine, enormous user base, and AI investments can continue producing substantial long-term cash flow.

Average Analyst Rating: Strong Buy | Chris’s Rating: Buy

Micron is a major producer of memory semiconductors, including the high-bandwidth memory increasingly required by AI accelerators. Chris believes memory demand from AI infrastructure can remain structurally stronger than in previous semiconductor cycles, although the stock remains highly volatile.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

Microsoft remains the crown jewel of Chris’s portfolio, with the position now showing a gain of more than 1,000%. Azure, Microsoft 365, enterprise software, cybersecurity, gaming, and artificial intelligence give Microsoft an extraordinary collection of recurring-revenue businesses and make it one of Chris’s highest-conviction long-term holdings.

Average Analyst Rating: Moderate Buy | Chris’s Rating: Hold

Procter & Gamble owns some of the world’s most recognizable household brands and provides defensive stability during periods of economic uncertainty. Chris views P&G as a quality long-term business, although its slower growth makes valuation especially important.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

This Amazon position has more than doubled and reflects Chris’s long-term conviction in AWS, e-commerce, logistics, and artificial intelligence. Amazon’s ability to reinvest enormous cash flows into new businesses remains one of its greatest competitive advantages.

Average Analyst Rating: Buy | Chris’s Rating: Buy

American Express combines a global payments network with an affluent customer base and powerful premium brand. Chris likes its closed-loop network, strong cardholder loyalty, travel exposure, and ability to generate attractive economics from higher-spending customers.

Average Analyst Rating: Buy | Chris’s Rating: Buy

Kinder Morgan owns critical North American energy infrastructure, including pipelines and storage assets. Chris likes the recurring cash-flow characteristics of infrastructure and believes natural gas will remain essential as electricity demand expands.

Average Analyst Rating: Buy | Chris’s Rating: Hold

Verizon provides essential wireless and communications services and produces substantial recurring cash flow. Chris primarily views Verizon as a defensive, income-oriented holding rather than a high-growth investment.

Average Analyst Rating: Buy | Chris’s Rating: Buy

Exxon Mobil is one of the world’s largest integrated energy companies and provides the portfolio with exposure to oil and natural gas. Chris likes its scale, disciplined capital allocation, and ability to benefit when geopolitical events tighten global energy supplies.

Average Analyst Rating: Strong Buy | Chris’s Rating: Buy — Speculative

LightPath is Chris’s newest investment, purchased Friday afternoon following the stock’s 18.56% one-day decline. Chris likes its exposure to defense, infrared imaging, advanced optics, surveillance, autonomous systems, and machine vision, but considers LPTH a speculative investment requiring disciplined position sizing.

Average Analyst Rating: Buy | Chris’s Rating: Strong Buy

Tesla remains one of Chris’s higher-risk, higher-potential investments because the thesis extends beyond automobiles into autonomy, robotics, energy storage, artificial intelligence, and manufacturing. Chris believes successful execution in autonomy and robotics could create enormous additional markets for Tesla.

Average Analyst Rating: Buy | Chris’s Rating: Hold

This long-held Apple position demonstrates the power of owning exceptional companies over extended periods. Chris continues to appreciate Apple’s ecosystem, brand strength, installed customer base, and services business while recognizing that today’s valuation leaves less margin for error.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

Nvidia remains the central hardware beneficiary of the artificial-intelligence infrastructure boom. Chris believes its GPUs, networking products, CUDA software ecosystem, and relentless innovation give Nvidia one of the strongest competitive positions in technology.

Average Analyst Rating: Buy | Chris’s Rating: Strong Buy — Speculative

Now publicly traded under the ticker SPCX, SpaceX gives Chris direct exposure to launch services, Starlink, Starship, satellite communications, and the expanding commercial space economy. Chris believes SpaceX could become one of the world’s most important technology companies, although its enormous ambitions and capital requirements make the investment considerably more speculative than a mature blue-chip holding.

Average Analyst Rating: Buy | Chris’s Rating: Hold

Apple provides this retirement portfolio with exposure to one of the strongest consumer technology ecosystems ever created. Chris intends to remain patient but recognizes that future returns will depend increasingly on earnings growth rather than valuation expansion.

Average Analyst Rating: Buy | Chris’s Rating: Buy

Costco’s membership model creates recurring revenue, extraordinary customer loyalty, and tremendous purchasing power. Chris considers Costco one of America’s highest-quality retailers and is comfortable holding through periods when valuation concerns pressure the stock.

Average Analyst Rating: Buy | Chris’s Rating: Buy

Cisco supplies networking, security, and infrastructure technology essential to modern enterprise computing. Chris believes AI-driven data-center growth can increase demand for networking infrastructure alongside the enormous spending taking place on processors and servers.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

GE Aerospace provides exposure to commercial aviation and defense through an enormous installed base of aircraft engines. Chris particularly likes the recurring service revenue generated over the decades-long life of those engines.

Average Analyst Rating: Buy | Chris’s Rating: Buy

Coca-Cola owns one of the world’s strongest consumer brands and an unparalleled global beverage distribution network. Chris likes its durability, pricing power, dividend history, and ability to generate cash across economic cycles.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

Lam Research manufactures critical semiconductor fabrication equipment used to produce increasingly sophisticated chips and memory. Chris believes the enormous investment required for AI semiconductors and advanced memory can support years of demand for Lam’s equipment.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

Mastercard benefits every time more economic activity moves from cash toward digital payments. Chris likes the company’s capital-light model, global network effects, strong margins, and long runway for electronic-payment adoption.

Average Analyst Rating: Buy | Chris’s Rating: Hold

Merck is a major pharmaceutical company with important franchises in oncology and other therapeutic areas. Chris likes the company’s research capabilities and cash generation but remains mindful of pharmaceutical patent cycles and pipeline execution.

Average Analyst Rating: Moderate Buy | Chris’s Rating: Hold

P&G adds defensive exposure through household products consumers purchase regardless of economic conditions. Chris values the company’s brands and dividend but expects slower growth than the technology-oriented positions in the portfolio.

Average Analyst Rating: Buy | Chris’s Rating: Strong Buy

Palantir has become one of Chris’s favorite pure-play artificial-intelligence investments because its software is increasingly embedded in government, defense, and corporate decision-making. Chris believes Palantir has an opportunity to become one of the defining enterprise software companies of the AI era, although valuation remains a significant risk.

Average Analyst Rating: Strong Buy | Chris’s Rating: Strong Buy

Visa operates one of the most powerful payment networks in the world. Chris likes the secular transition away from cash, Visa’s enormous network effects, high margins, international opportunity, and relatively capital-light business model.

Trip, a junior at Tulane University’s Freeman School of Business, continues to manage a concentrated portfolio containing both extraordinary long-term winners and investments that have required patience. His portfolio currently shows an overall gain of +63.02%.

Average Analyst Rating: Buy | Trip’s Rating: Strong Buy

GE Vernova remains Trip’s spectacular long-term winner, with his investment now up more than 800%. Trip continues owning GEV because he believes rising electricity demand from AI data centers, grid modernization, manufacturing, and electrification can support years of growth for the company’s power-generation and grid businesses.

Average Analyst Rating: Buy | Trip’s Rating: Buy

Trip has now more than doubled his investment in Costco. He continues owning the company because its membership model, loyal customer base, disciplined management, powerful brand, and international expansion opportunity provide an unusually strong foundation for long-term compounding.

Average Analyst Rating: Hold | Trip’s Rating: Hold

Intel remains Trip’s largest percentage loser and demonstrates why even iconic technology companies can struggle through major strategic transitions. Trip continues to hold because Intel possesses valuable processor, manufacturing, and foundry assets, but he wants to see stronger evidence that the turnaround can produce sustainable profitability before becoming more bullish.

Average Analyst Rating: Strong Buy | Trip’s Rating: Buy

Micron gives Trip direct exposure to the extraordinary memory requirements created by artificial intelligence and advanced computing. Trip believes high-bandwidth memory has become strategically important to AI accelerators and that Micron can benefit if the data-center investment cycle remains strong.

Frankie, now attending Georgetown University’s McDonough School of Business, continues to own one of the family’s most growth-oriented portfolios. His overall portfolio gain has reached an impressive +147.13%, led by several investments that have become major long-term winners.

Average Analyst Rating: Hold | Frankie’s Rating: Buy — Speculative

Navitas develops next-generation gallium nitride and silicon carbide power semiconductors designed to make power conversion smaller, faster, and more efficient. Frankie continues owning NVTS because he believes advanced power semiconductors can become increasingly important in AI data centers, electric vehicles, renewable energy, and other high-growth markets, while recognizing that this remains a volatile small-cap investment.

Average Analyst Rating: Buy | Frankie’s Rating: Strong Buy

GE Vernova remains Frankie’s biggest percentage winner, with his investment now up more than 805%. Frankie continues to believe electricity demand from AI data centers, grid modernization, electrification, and expanding global power requirements creates an unusually attractive long-term environment for GE Vernova.

Average Analyst Rating: Buy | Frankie’s Rating: Buy

Frankie’s Costco investment has now more than doubled. He continues owning Costco because the company’s membership economics, loyal customer base, purchasing power, trusted brand, and disciplined management make it one of the highest-quality retailers in the world.

Average Analyst Rating: Strong Buy | Frankie’s Rating: Buy — Speculative

Nebius has become another tremendous winner for Frankie, with the position up nearly 147%. Frankie likes the company because it is building AI-focused cloud and computing infrastructure, giving him direct exposure to the enormous capital investment required to train and operate increasingly sophisticated artificial-intelligence models.

Average Analyst Rating: Buy | Frankie’s Rating: Strong Buy

Frankie continues to own Tesla because he believes the company’s long-term opportunity extends far beyond electric vehicles. Autonomous driving, robotics, artificial intelligence, energy storage, and manufacturing innovation could eventually become major contributors to Tesla’s value if management executes successfully.

Average Analyst Rating: Strong Buy | Frankie’s Rating: Strong Buy

ServiceNow provides enterprise workflow software that helps major corporations automate complicated business processes. Frankie believes AI can strengthen ServiceNow’s competitive position because the company’s platform is already deeply embedded within corporate workflows, allowing customers to use AI to automate even more tasks.

Average Analyst Rating: Buy | Frankie’s Rating: Buy — Speculative

Aurora is developing autonomous-driving technology with a major focus on self-driving trucking. Frankie likes the enormous potential economic value of autonomous freight transportation but recognizes that commercialization, safety, regulation, competition, and capital requirements make Aurora one of the more speculative investments in his portfolio.

Average Analyst Rating: Strong Buy | Frankie’s Rating: Strong Buy

Microsoft has nearly tripled Frankie’s original investment and remains one of his highest-quality holdings. Frankie continues owning Microsoft because Azure, Microsoft 365, enterprise software, cybersecurity, gaming, Copilot, and artificial intelligence give the company multiple opportunities to compound earnings for many years.

This week’s portfolios provide another reminder that successful investing does not require every stock to be a winner.

Chris has Microsoft up more than 1,000% and GE Vernova approaching an 800% gain. Trip has GE Vernova up more than 805% and Costco up more than 105%, while Intel remains down approximately 30%. Frankie has GE Vernova up more than 805%, Microsoft up more than 196%, Nebius up nearly 147%, and Costco up more than 104%.

Those numbers illustrate one of the most important lessons we have learned as investors: your biggest winners can matter far more than your losers if you give exceptional businesses enough time to compound.

That does not mean ignoring risk. It means understanding the difference between a temporary decline in a good investment and a permanent deterioration in the underlying business.

We will inevitably make mistakes. Every investor does.

The goal is to keep those mistakes manageable while allowing the best investments enough time to become meaningful.

The Smart Wealth Newsletter is provided solely for educational and informational purposes. Nothing contained in this newsletter should be considered individualized investment, financial, tax, accounting, or legal advice, nor should anything discussed be interpreted as a recommendation to buy, sell, or hold any particular security.

Chris McLaughlin, Trip McLaughlin, and Frankie McLaughlin own or may own securities discussed in this newsletter. The portfolio gains and losses shown are based on brokerage information available for this edition and are presented for educational purposes only. Individual investment results will vary, and the performance shown may not reflect taxes, fees, dividends, subsequent transactions, or other factors affecting actual returns.

Stock prices, analyst ratings, price targets, earnings estimates, economic forecasts, and market expectations can change at any time. Analyst ratings and price targets represent opinions and estimates rather than guarantees of future performance.

Certain investments discussed in this newsletter—including small-cap, emerging-growth, technology, autonomous-driving, space, semiconductor, and other speculative companies—can experience substantial volatility. Investors in these securities could lose a significant portion or all of their invested capital.

Past performance does not guarantee future results. A stock that has appreciated 100%, 500%, 800%, or even 1,000% can subsequently decline substantially. Likewise, a stock that has fallen significantly can continue falling and is not necessarily a bargain simply because its price has declined.

Every investor has different financial circumstances, objectives, time horizons, liquidity requirements, tax considerations, and tolerance for risk. Readers should conduct their own research and, when appropriate, consult qualified financial, tax, accounting, and legal professionals before making investment decisions.

The McLaughlin family shares these portfolios to document our investing journey, the decisions we make, what works, what does not, and what we learn along the way. Our goal is education—not prediction—and nothing replaces doing your own homework.

Invest responsibly, diversify appropriately, think long term, and never invest money you cannot afford to lose.