📊 What The Rich Are Buying

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Happy Sunday!

Tech stocks have been under pressure. Why?

• Concerns are rising over Big Tech seeking $1.5T in external financing for AI capital spending by 2028.

And this week, the expansion plans kept coming.

• Google committed $40B to 3 new data centers in Texas.

• Microsoft announced a $10B investment into a new AI data hub in Portugal.

Several other headlines added to the anxiety.

• SoftBank sold its entire Nvidia stake for nearly $6B, which sent jitters, even though they said the money would be reinvested into OpenAI.

• Taiwan Semi reported its slowest growth in 18 months.

• And Michael Burry accused AI hyperscalers like Oracle and Meta of artificially boosting earnings.

With all of this swirling at once, speculative tech stocks have now lost 1/3rd of their value in the past month.

• Meanwhile, the broader Nasdaq index ended the week down just under 2%.

Some key data bites from this week that you should know:

• Bank of America shared 16 non-AI stocks worth taking a look.

• U.S. government reopened after a 43-day shutdown.

• AMD sees 35% sales growth over the next 3 to 5 years.

• Trump proposed the idea of a 50-year mortgage.

• Merck will buy biotech Cidara Therapeutics in $9.2B deal.

• Apollo acquired a 55% stake in Atletico Madrid.

• Buying worst 10% of stocks each month has returned 13.2% annually since 1926.

• South Sudan will see the fastest real GDP growth in 2025 at 24.3%.

• Anthropic will launch a $50B AI infrastructure buildout in U.S.

• Top 20% of earners own 87% of all stocks and mutual funds.

• Visa & Mastercard reached $38B swipe fee settlement with merchants.

• Verizon plans to cut roughly 15,000 jobs, or 15% of total workforce.

• Ayden is forecasting 20% annual net revenue growth post 2026.

• Kim Kardashian’s Skims is raising new funds at a $5B valuation.

• Toyota will invest $10B in U.S. manufacturing over next 5 years.

Earnings & Financial Results:

• RocketLab forecasted Q4 sales of $175M, ahead of $172M estimate.

• CoreWeave expects 2025 sales of $5.10B, below $5.29B estimate.

• Nebius posted +355% revenue growth and signed a $3B deal with Meta.

• Cisco beat earnings and netted $1.3B in AI infrastructure orders.

• JD topped expectations but saw net profit decline 55% YoY.

• Disney added 3.8M subscribers to Disney+, reaching a total 131.6M.

In today’s newsletter:

• 🍿 Netflix Stock Split

• 💌 Buffett’s Letter

• 🛒 What The Rich Are Buying

• 🥊 OpenAI vs Anthropic

• 👟 On Hits Full Speed

Let’s jump right in.

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Netflix is hitting “play” on a stock split.

• This past Friday after market close, shareholders received 9 additional shares for every 1 they own.

• The new split-adjusted price will take effect on Monday, November 17th.

As a reminder, stock splits are purely cosmetic and they don’t change a company’s value.

• They simply divide existing shares into more pieces, lowering the price per share without affecting total market capitalization.

Companies often split their stock when prices climb too high, making shares more accessible for retail investors.

Warren Buffett is ‘going quiet.’

• The greatest investor of all time announced in a Thanksgiving letter that he will no longer write Berkshire Hathaway’s annual reports nor present at the annual shareholder meetings.

• His legendary tenure as CEO is nearing its end, with Greg Abel set to take over at the start of 2026.

When he does, Abel will inherit a company more financially robust than ever.

• Berkshire now holds $382B in cash and short-term investments, a massive war chest built under Buffett’s discipline.

• To put that in perspective, Berkshire is estimated to own roughly 5% of the entire U.S. Treasury bill market.

In his farewell letter, Buffett reflected on life, philanthropy, succession, and the lessons that guided him.

Here were a few of my favorite snippets:

• “Don’t beat yourself up over past mistakes – learn at least a little from them and move on. It is never too late to improve. Get the right heroes and copy them.”

• “Decide what you would like your obituary to say and live the life to deserve it.”

• “Keep in mind that the cleaning lady is as much a human being as the Chairman.”

• “Remember to thank America for maximizing your opportunities. But it is – inevitably – capricious and sometimes venal in distributing its rewards.”

Buffett’s letter was a reminder that eras end.

But the market never stops moving.

And on Friday, we got a fresh look at what the biggest investors are doing with their money.

• That’s because quarterly 13F filings for Q3 2025 were released, which reveal the latest holdings from money managers with over $100M in assets.

One headline that stood out was Berkshire Hathaway building a new $4.3B position in Alphabet.

• The purchase makes it the 10th largest equity holding in Berkshire’s portfolio.

• Still, it represents only 1.62% of Berkshire’s $267B equity book, making it a relatively small bet in the context of the entire portfolio.

Buffett has long admired Google but has historically avoided tech companies.

• As a result, this trade was likely made by Berkshire’s other investment managers, Ted Weschler or Todd Combs.

Several other well-known investors made notable moves as well.

• Seth Klarman initiated a more than 7% position in Union Pacific.

• Dan Loeb built a nearly 6% position in Norfolk Southern.

• David Tepper built a near 6% position in Whirlpool.

For anyone who wants to dig deeper, I created a full report visualizing the portfolios of more than 25 well-known money managers, which you can access here:

Two AI giants, two very different playbooks.

• OpenAI and Anthropic have become two of the largest players in the AI space, best known for their ChatGPT and Claude chatbots.

• But their strategies and spending habits could not be more different.

Based on management projections collected and reported by the Wall Street Journal, Anthropic expects to break even by 2028.

OpenAI, meanwhile, forecasts operating losses of $74B that year before breaking even in 2030.

How steep is that burn?

• OpenAI is projected to burn about 14x more cash than Anthropic before reaching profitability.

• The company has also taken on up to $1.4T in infrastructure commitments over the next eight years.

• Meeting those obligations assumes demand for its models stays exceptionally strong.

The two companies have different frameworks for growth.

• Anthropic’s focus is primarily enterprise, which makes up roughly 80% of revenue.

• OpenAI, in contrast, is pushing into costly areas like image and video generation, AI-powered browsers, and consumer hardware.

That level of ambition comes with a steep financial path.

• WSJ reporting shows OpenAI projecting free cash flow rising from roughly negative $50B to positive $25B in only two years, with revenue climbing from $3.7B in 2024 to $145B in 2029.

Analysis from The New York Times found no U.S. company of comparable size has ever grown revenue that quickly over a five-year span.

• One venture capitalist described the ambition as “hoping for the Immaculate Conception.”

On Running is sprinting ahead.

Shares surged nearly 20% this week after the company reported a strong Q3.

• Full-year 2025 sales guidance was raised to $3.72B, up from $3.67B, and above analyst expectations.

• This marks the 3rd straight quarter of raised guidance and reflects 34% YoY sales growth on a constant currency basis.

• On also beat earnings and revenue estimates for the quarter.

The company’s momentum continues to be driven by its premium positioning, strong brand momentum, and product innovation across categories.

• Customer loyalty is rising, the DTC channel is expanding, and apparel has emerged as a meaningful growth pillar.

• Apparel sales increased 100% at constant currency with more than 1M units sold in the quarter.

The company is also seeing strong traction across regions.

• Asia Pacific has become a major growth engine, delivering its 4th straight quarter of triple digit constant currency growth and now contributing nearly 20% of total sales.

In the U.S., On’s pricing power remained intact as demand stayed strong despite higher prices.

• During its earnings call, the company confirmed it will maintain a full price strategy through the holiday season, remaining disciplined with its premium blueprint.

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Mark Spitznagel, who made $1B in a single day during the 2015 flash crash, warns markets are mimicking 1929. Yeah, just another oracle spouting gloom and doom, right?

Vanguard and Goldman Sachs forecast just 5% and 3% annual S&P returns respectively for the next decade (2024-2034).

Bonds? Not much better.

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Notable Companies Reporting Earnings Week of November 16th, 2025:

Buys

• Cleo Fields (D)

  • Company: Apple ($APPL)

    • Amount Purchased: $350K - $750K

  • Company: Alphabet ($GOOGL)

    • Amount Purchased: $150K - $350K

  • Company: Nvidia ($NVDA)

    • Amount Purchased: $115K - $300K

  • Company: Netflix ($NFLX)

    • Amount Purchased: $100K - $250K

• Tony Wied (R)

  • Company: Salesforce ($CRM)

    • Amount Purchased: $100K - $250K

  • Company: ServiceNow ($NOW)

    • Amount Purchased: $100K - $250K

  • Company: Disney ($DIS)

    • Amount Purchased: $100K - $250K

  • Company: Five Below ($FIVE)

    • Amount Purchased: $100K - $250K

Sells

• Michael McCaul (R)

  • Company: Intel ($INTC)

    • Amount Sold: $115K - $300K

  • Company: Nvidia ($NVDA)

    • Amount Sold: $100K - $250K

Buys

• Roper Technologies ($ROP)

  • Insider: Laurence Hunn (President and CEO)

    • # of Shares Purchased: 10,000

    • $ Amount: $4,522,310

    • SEC Forms: [1]

• Upstart Holdings ($UPST)

  • Insider: Paul Gu (CTO)

    • # of Shares Purchased: 100,000

    • $ Amount: $3,922,800

    • SEC Forms: [1]

Sells

• AppLovin ($APP)

  • Insider: Eduardo Vivas (Director)

    • # of Shares Sold: 150,000

    • $ Amount: $97,636,465

    • SEC Forms: [1]

• Robinhood ($HOOD)

  • Insider: Jason Warnick (CFO)

    • # of Shares Sold: 300,000

    • $ Amount: $39,842,135

    • SEC Forms: [1]

🤝 Review of the Week